Aug 9, 2024
When deciding what to pair with mortgage debt, developers may find themselves choosing between mezzanine financing and Commercial Property Assessed Clean Energy, or C-PACE, to reduce the weighted average cost of capital. C-PACE financing is an attractive alternative to a mezzanine loan because it reduces the project’s capital cost and offers longer-term solutions for a […]
Aug 1, 2024
Adoption of C-PACE financing within the commercial real estate capital stack is expected to increase in the coming months as capital providers embrace the program’s ability to modernize aging properties and boost values. As we enter the second half of 2024, CRE owners continue to grapple with elevated interest rates and a heightened cost of […]
Jul 25, 2024
Triple-digit temperatures have once again arrived in Texas, putting immense strain on the state’s power grid as homes and businesses crank the A/C. The summer heat comes as thousands of new residents move into the state. Historic population growth, combined with the rise of artificial intelligence, cloud computing and bitcoin mining, are pushing demand for […]
Jul 19, 2024
The value of sustainable buildings is well documented, with rental premiums of 6% and sales premiums of 7.6% across commercial properties. Companies are willing to pay more for energy-efficient buildings if they expect those upgrades will translate to lower operating costs. The problem today is that finding those types of properties has become increasingly difficult. […]
Jun 25, 2024
PACE issuance got off to a strong start in 2024 as property owners looked to offset a lack of available bank debt with alternative financing solutions. PACE asset-backed securities volume totaled about $362 million through June 7, according to a new report from Morningstar DBRS. The robust volume comes on the heels of a record-setting […]
Jun 13, 2024
Amid widespread demand for sustainability and low-cost debt, one asset type is leading the charge for Texas’ Commercial Property Assessed Clean Energy program. Hospitality groups are increasingly turning to C-PACE to help finance new and existing projects, with half of loans administered by Lone Star PACE so far this year tied to hotels. Owners are […]
Jan 9, 2024
To provide services for guests, hotel properties are prone to consuming a high volume of energy and water. Heating, cooling, lighting, laundry, irrigation, and operating swimming pools are just some of the activities that drive usage. Just how much? A recent report from the Urban Land Institute reveals that hotels are among the highest energy […]
Sep 16, 2023
According to data from the Department of Energy, there are nearly 6 million commercial properties in the U.S., utilizing 97 billion square feet of floor space. Collectively, this sector spends $190 billion on energy, creating an opportunity for businesses to improve efficiency and reduce costs around heating, cooling, lighting, and water. For mixed use property owners […]
Sep 2, 2023
As retail property owners adjust to a new normal and reimagine business models, controlling costs will be critical to success. Retail properties use an average of 18.3 kilowatt-hours (kWh) of electricity per square foot annually, with 60% of it consumed by lighting, heating and cooling. Lighting alone represents 25% of usage! You have an opportunity […]
Aug 26, 2023
Hot summer days and cold winters can be expensive for office building owners. According to the EPA, heating and cooling is one of the top uses for water consumption in office buildings. Energy represents nearly 20% of operational costs with more than 50% of energy use in the average office building coming from lighting, heating, […]