How Sustainable Upgrades Can Cut Costs, Boost NOI, and Improve Tenant Satisfaction
Why Energy Efficiency Matters in Multifamily Real Estate
Utility costs represent a major share of operating expenses in multifamily assets — and they’re among the few expenses owners can actively reduce. With energy prices rising and renters increasingly prioritizing sustainability, energy efficiency is no longer just a nice-to-have. It’s a strategic lever for improving property performance, tenant experience, and long-term value.
High-Impact Energy-Saving Upgrades
Not every sustainability effort delivers the same ROI. These upgrades consistently rank among the most effective for reducing operating expenses and enhancing the resident experience:
LED Lighting Retrofits:
Replace outdated lighting with energy-efficient LEDs across interiors, exteriors, and common areas. They consume less electricity and last significantly longer.
Smart Thermostats and HVAC Controls:
Enable residents to manage energy use more effectively and allow operators to optimize efficiency.
Low-Flow Plumbing Fixtures:
Reduce both water and energy usage, particularly in buildings with central water heating systems.
Energy-Efficient Windows and Insulation:
Seal leaks and stabilize indoor temperatures to ease HVAC loads.
ENERGY STAR Appliances:
Newer units use less power and water, especially when installed in bulk across a property.
Operational Strategies for Ongoing Savings
In addition to physical upgrades, multifamily owners can benefit from better operational practices:
Submetering:
Allow residents to monitor their own usage and creates incentives to conserve.
Preventive Maintenance:
Keeps HVAC and water systems running efficiently, avoiding wasteful breakdowns.
Green Leasing:
Aligns resident behavior with sustainability goals through clauses that promote conservation.
Why Sustainability Pays—In More Ways Than One
Sustainability isn’t just an environmental initiative—it’s a financial strategy. Green buildings attract and retain residents more easily, support rent premiums, and command greater interest from ESG-conscious investors. When executed strategically, energy efficiency upgrades pay for themselves many times over.
At SAM, we work closely with ownership groups to identify the most impactful efficiency measures and operational enhancements. Our goal: lower utility costs, improve tenant satisfaction, and increase net operating income.
Partnering with SAM for Smarter Sustainability
We help multifamily owners take a data-informed approach to sustainability—prioritizingupgrades with measurable impact and long-term ROI. Contact us to learn how we can helpyou integrate energy efficiency into your investment strategy
