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Facilities Energy Management
Alexis Wong, Kiran Singh, Quan Luu, Sam Hein
ITEC 200- ITR 2014
CBL: A Leading Diversified Real Estate Investment Trust
Properties
Total
Malls / Open-Air
Outlet Centers
Associated Centers
Community Centers
Offices
3rd Party / Other
No. Of Properties
158
83
3
32
10
14
17
Sq. Ft (M)
92.7
72.4
1.0
4.9
2.7
0.8
10.9
The Bottom Line
CBL’s Investors require financial and environmental outperformance
What strategies should CBL consider to ensure that these goals are complementary?
What WegoWise Does
Reads your utility bills: electricity, gas, water
Simple data visualization tools
Identifies usage spikes
Benchmarks against peers
Projects and measures savings
Log onto your WegoWise account
Track your energy usage
Benchmarking
Data Analysis
Flushing away excess water usage
Shows a typical water retrofit for multi-occupant
building in WegoWise database
Low flow toilets were installed in 2009 after WegoWise
identified a wasteful energy source
Transforming data to polar coordinates can illustrate how
much excess water usage is now eliminated
WegoWise is Extremely Cost-Effective
WegoWise Changes the Economics of FEM Product
Market
Only 5% of the potential market
reached by “total” approaches
Several barriers to adoption
2011 Empire State Building Retrofit (Johnson Controls)
38% Reduction in energy consumption
$13MM Upfront capital commitment
$4.2MM Annual energy savings
3.1 Year payback
This formula doesn’t work for a lot of firms
WegoWise and CBL: An Incremental Approach
No hardware = No upfront capital commitment
Issue Discovery
Data leads to ROI Prioritization
Ongoing monitoring and benchmarking
WegoWise is cost-effective enough to monitor any FEM installations
Why should REITs like CBL pay attention to
energy efficiency?
~ 1/3 of typical building operating budgets
NOI/NAV effects
Occupant comfort
20% of USA’s greenhouse gas emissions
Regulatory compliance
CSR goals
CBL’s Form 10-K
30% of energy in buildings
is used inefficiently or
unnecessarily
14%
Lets Talk Numbers
200,000 Square foot property
Pays $2 / square foot
+ $40,000
10% Reduction in energy consumption
At 8% “cap” rate, this can mean an asset value boost of
+ $500,000
CBL’s net asset value by
+ $231M
CBL’s CSR Program
Able to save 500 million
gallons per month
If the energy efficiency of
commercial and industrial buildings
improve by 10%, the collected
savings would be over $2 billion in
20 years
Now Is the Time to Invest