It's always a smart decision to use the tenant improvement allowance on something that has a tangible impact on your company's bottom line. Whether you're retrofitting an existing space or designing a new one from scratch, including energy efficiency upgrades is a wise way to use a portion of your tenant improvement allowance. These upgrades typically have relatively little cost in a new building project but can actually contribute to a lower occupancy cost over time.
1. High-Efficiency Lighting
For most tenant improvement projects, you will get your highest energy efficiency return on investment by upgrading your lighting. While LED lighting is a popular choice, it's not the only way to save energy in lighting. Turning old fluorescent fixtures into newer ones with T8 lamps and other high efficiency features is an inexpensive upgrade that makes a real difference. Just screwing CFL bulbs into compatible incandescent sockets can cut your energy consumption by 70% or more.
2. Motion Sensitive Light Switches and Timers
High efficiency lighting is one way to save energy. Another way is to spend a small piece of your tenant improvement allowance to install motion-sensitive switches and timers in your newly built space. These technologies insure that your lights are on when you need them and that they're off when you don't. Furthermore, you can be sure that they'll work even if the last employee out at night forgets to flip the switch.
3. HVAC Upgrades
As a part of redesigning your space, investing in your HVAC system can make it more energy efficient. Even if your building has a central climate control system, the way that your ducts and your controllers are set up has a great impact on how much energy you burn. Generally, more zones allow you or your property management to tailor your HVAC system's performance, leading to fewer hot and cool spots.
4. Upgraded Appliances and Equipment
Any appliances or equipment that you buy with your tenant improvement allowance should be EnergyStar rated. Whether you're buying a refrigerator for your break room or an extra air conditioning unit for your server room, EnergyStar certification means that the equipment you're buying has industry-leading efficiency. Upgrading your power strips to intelligent ones can also reduce your plug load and save power when plugged-in devices don't actually need it.
5. Efficient Window Treatments
Efficient window coverings can reduce heat entering your space in the summer or exiting your space in the winter. Even if you can't manage thermal transfer through the exterior of your building by adding awnings or overhangs as necessary, interior treatments like window shades, films or even drapery can reduce the impact of your space's least efficient feature - its glass line.
Keeping Your Savings
Since you're spending your tenant improvement allowance on energy efficiency upgrades, you should be able to keep the money that you save. In a triple-net building where you're already sub-metered for everything, this is generally easy to do. However, it's still a good idea to ensure that you're getting credit for any tax credits or rebates that come from your energy efficient choices.
Another solution is to demand sub-metering. Your landlord should be an active proponent of submetering your space since it reduces his exposure to your energy costs. However, with your energy efficient upgrades, you should come out ahead as your actual energy utilization runs below your landlord's estimate for your space. Your landlord should pay to submeter you, letting you conserve your tenant improvement allowance for even more energy efficient upgrades.
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