Multi-Tenant Building Energy Solutions

Commercial Energy for Multi-Tenant Properties

Multi-tenant commercial properties—from shopping centers to mixed-use developments—face unique energy management challenges. With multiple tenants, varied operating hours, and complex metering arrangements, optimizing electricity and natural gas costs requires specialized expertise.

In deregulated markets, multi-tenant property owners can significantly reduce operating costs while improving tenant satisfaction.

Electricity & Natural Gas: Dual Energy Strategy

Most multi-tenant operations use both electricity and natural gas to power their facilities. Understanding how to optimize both commodities is essential for comprehensive cost management:

Electricity Usage

• Lighting and HVAC systems
• Electric motors and equipment
• Refrigeration and cooling
• Office equipment and computers
• Backup power systems

Natural Gas Usage

• Process heating and steam generation
• Space heating systems
• Hot water heating
• Cooking equipment
• Emergency generators

By managing both energy commodities strategically through competitive procurement in deregulated markets, businesses can reduce overall energy costs by 15-30%.

Types of Multi-Tenant Properties

Commercial Energy Advisors serves all multi-tenant property types:

Shopping Centers

• Strip centers and neighborhood retail
• Regional and super-regional malls
• Outlet and lifestyle centers
• Power centers and big-box retail

Office Properties

• Multi-tenant office buildings
• Business parks and campuses
• Medical office buildings
• Flex and industrial office

Mixed-Use Developments

• Retail/office combinations
• Retail/residential developments
• Live-work-play communities
• Urban mixed-use towers

How Multi-Tenant Properties Use Commercial Energy

Application	% of Total	Variability
Common Area HVAC	30-50%	Weather-driven
Tenant HVAC	20-40%	Tenant-driven
Hot Water	10-20%	Occupancy-driven
Food Court/Restaurants	10-30%	Tenant-driven

Cost Reduction Strategies

1. Metering Configuration Optimization

Choose the right metering approach:

Master Metering

Single account for entire property:

• Landlord procures at volume rates
• Costs allocated to tenants via lease
• Simplified supplier negotiation
• Better rates through aggregation

Sub-Metering

Individual tenant meters:

• Tenant accountability for usage
• Fair allocation of costs
• Landlord may still procure centrally
• More administrative complexity

Hybrid Approaches

Combination strategies:

• Master meter with tenant sub-meters
• Common area separate from tenant areas
• Food court aggregation
• Flexibility by tenant type

2. Portfolio Procurement

Aggregate across properties:

Property Portfolio Benefits

• Combine volume across buildings
• Negotiate portfolio-wide rates
• Coordinate contract timing
• Single supplier relationship

Management Company Scale

• Leverage managed portfolio
• Standardize procurement
• Share expertise across properties
• Buying cooperative opportunities

3. Tenant Coordination

Work with tenants for mutual benefit:

Lease Provisions

• Energy efficiency requirements
• Sub-metering and allocation
• After-hours HVAC policies
• Operating hour coordination

Shared Savings Programs

• Split efficiency investment costs
• Share procurement savings
• Incentivize tenant conservation
• Green lease provisions

4. Common Area Efficiency

Reduce landlord-controlled consumption:

HVAC Management

• Building automation systems
• Occupancy-based scheduling
• Holiday and closure setbacks
• Optimal start/stop programs

Equipment Upgrades

• High-efficiency boilers
• Condensing water heaters
• Heat recovery systems
• Variable speed drives

Multi-Tenant Specific Considerations

Tenant Mix Impact

Different tenants have different energy profiles:

High-Usage Tenants

• Restaurants and food service
• Gyms and fitness centers
• Entertainment venues
• Grocery and food retail

Standard Usage Tenants

• General retail
• Professional offices
• Personal services
• Medical offices

Optimizing tenant mix can affect overall energy costs.

Lease Structure Variations

Energy cost allocation depends on lease type:

Gross Leases

• Landlord absorbs utility costs
• Energy savings improve NOI
• Tenant has no conservation incentive

Triple Net (NNN)

• Tenants pay CAM charges
• Energy costs pass through
• Fair allocation important

Modified Gross

• Base year energy included
• Increases pass through
• Hybrid accountability

Hours of Operation

Multi-tenant properties have varied schedules:

• Retail: Evening and weekend peaks
• Office: Weekday business hours
• Restaurants: Meal period peaks
• Entertainment: Evening and weekend

Understanding these patterns optimizes procurement and scheduling.

Industries We Also Serve

Multi-tenant properties often include:

• Retail Commercial Energy Solutions - Retail tenants
• Restaurant Commercial Energy Solutions - Food court operations
• Office Building Commercial Energy Solutions - Office tenants
• Healthcare Commercial Energy Solutions - Medical tenants

Get Your Free Multi-Tenant Energy Analysis

Commercial Energy Advisors helps property owners and managers optimize energy costs. Our services include:

1. Property Analysis: Review usage across your portfolio
2. Metering Evaluation: Optimize metering configuration
3. Supplier Comparison: Obtain competitive bids for your volume
4. Tenant Coordination: Support allocation and pass-through
5. Ongoing Management: Monitor markets and renewals

No cost to your property—suppliers compensate us directly.

Whether you manage a single multi-tenant building or a national portfolio, Commercial Energy Advisors can help you reduce energy costs while maintaining tenant satisfaction.

Contact us today for your complimentary multi-tenant energy analysis.