4 common mistakes when pitching building efficiency

“Finally, owners and vendors often struggle to model the financial benefits of particular efficiency investments. Making matters worse, every building owner does internal financial modeling differently. For example, some owners for leasing reasons can rely only on simple payback as a financial metric, while others can use other assessment criteria, such as Net Present Value and Internal Rate of Return. Some can incorporate criteria such as increased value at sale, or avoided maintenance, increased employee productivity and improved corporate reputation, while others cannot.

Owners typically prefer to self-finance for a variety of reasons, and are wary of investments that only work based on complicated third-party financing mechanisms. These can generate onerous legal fees and increase the liabilities that owners have to record on their books.”–By Sara Neff