Industry-leading efficiency for your building.
The objective in industrial property ownership is to insure that your property is leased to long-term tenants at attractive rates. Your property needs to be well positioned from a location and size perspective but also from an operating expense vantage point in order to maximize its cash flow and value. PACE will allow you to implement necessary energy efficiency and renewable energy improvements that retain tenants and improve long-term value. Rather than utilizing property equity to make improvements PACE provides long-term fixed rate financing that is paid through your property taxes.
Given the fact that most industrial tenants are on NNN leases you are able to improve your property while being able to pass-through the PACE property tax payments to tenants. The bottom line is that industrial properties reduce their tenants’ cost of occupancy, net of the PACE assessment, and you improve the value of your property. Energy costs are normally approximately 10% of operating expenses for most companies. If you can reduce their expenses and improve their bottom line you create a loyal tenant who renews their lease and a property that attracts the top investment dollar.
What can be financed with PACE?
Almost any improvement to an existing industrial building can be financed through PACE, because many improvements already have an energy efficiency or renewable energy component to them. Think about that new exterior LED lighting you wanted to install, or the energy-saving HVAC, roofing or solar energy. As long as the upgrade is not merely cosmetic, PACE financing may be able to finance the project.
The result is an industrial property that is able to retain tenants, attract new ones and achieves the highest price per square foot in the market.
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