Purpose of the project
Energy efficiency projects at this 186,000 square-foot Tucson Medical Center-affiliated medical office building aimed to increase existing tenant satisfaction, attract potential tenants to fill the property's vacant spaces, and reduce operating costs. An ASHRAE Level I energy audit was followed by improvement projects including installation of LED lighting, retrocommissioning, and upgrades to the Building Automation System.
Building owners are often tempted to invest in aesthetic improvements over "behind the scenes" operational improvements that are less visible but can improve occupant comfort and reduce operating costs. In the case of El Dorado Medical, the Clarion asset management team resisted that temptation and opted to invest over $500,000 in efficiency-improving projects that are not only accretive to property returns but also align with Clarion's mission to prioritize environmental responsibility.
These projects yielded an impressive 40% reduction in energy use ($330,000 in annual savings) and a full payback in just 1.7 years. In addition to reducing operating costs, the energy efficiency investment in this property improved occupant comfort, leading to increased tenant satisfaction, retention, and attraction.
One of Clarion’s primary corporate responsibility goals is to create value by investing strategically in capital improvements that reduce natural resource consumption and operating expenses. The efficiency improvements at El Dorado Medical are an excellent example of the environmental and financial benefits that can be achieved.
- Jeb Belford, Managing Director, Clarion Partners