As manager of an important REIT, you are committed to sustainability and optimizing the efficiency of...

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As manager of an important REIT, you are committed tosustainability and optimizing the efficiency of your assets. Youhave set a goal to reduce your energy consumption by 30% over yourbaseline and you have seen much success to date by doing the lowhanging fruit. However, you still need another 10% savings to meetyour goal and your property managers are telling you that to makefurther progress in their buildings will take capital investment toeffectively increase their efficiency. For next year you have beengiven a $15M budget to allocate for capital improvements in theportfolio. Your property managers have given you their essentialcapital budgets and the must do items total $25M (roof repairs andreplacements, parking lot repairs, HVAC replacements, etc). Howwill you fund energy retrofits? Misc. Information The portfolio ofbuildings is rated in ENERGY STAR Portfolio Manager from 1 to 100(Targeted range of highest efficiency is 75 to 100) The PropertyManagers are financially incentivized to meet their goals Desiredpayback for typical energy conservation measures is 2-4 years (200- 500 words should be enough to provide a complete answer)

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3.6 Ratings (560 Votes)

There is no right or wrong answer to this question I am putting together my thoughts below so that you can add further meat and your own thoughts to come up with an answer within the stipulated length Funds required 25 M See Answer

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As manager of an important REIT, you are committed tosustainability and optimizing the efficiency of your assets. Youhave set a goal to reduce your energy consumption by 30% over yourbaseline and you have seen much success to date by doing the lowhanging fruit. However, you still need another 10% savings to meetyour goal and your property managers are telling you that to makefurther progress in their buildings will take capital investment toeffectively increase their efficiency. For next year you have beengiven a $15M budget to allocate for capital improvements in theportfolio. Your property managers have given you their essentialcapital budgets and the must do items total $25M (roof repairs andreplacements, parking lot repairs, HVAC replacements, etc). Howwill you fund energy retrofits? Misc. Information The portfolio ofbuildings is rated in ENERGY STAR Portfolio Manager from 1 to 100(Targeted range of highest efficiency is 75 to 100) The PropertyManagers are financially incentivized to meet their goals Desiredpayback for typical energy conservation measures is 2-4 years (200- 500 words should be enough to provide a complete answer)