Financing for Multi-Tenant Building Efficiency: Why This Market is Underserved and What Can Be Done to Reach It

Research Report E13E


Casey Bell, Stephanie Sienkowski, and Sameer Kwatra


Over the past several years, energy efficiency financing has been widely viewed as a promising solution to reducing upfront cost barriers to energy efficiency investment. However, several markets, including commercial office markets and the multifamily subsector, remain stubbornly hard to reach. Financing is not a panacea for serving hard-to reach markets, and driving energy efficiency investment requires overcoming many other barriers in the commercial buildings market including split-incentives, long payback periods, and perceived uncertainty surrounding the savings from energy efficiency measures. There is also a lingering question as to how and when attractive financing opportunities might make a difference in the commercial buildings market.

The purpose of this report is to provide an in-depth look at the barriers and potential solutions to energy efficiency investment in markets for commercial-leased space, including office space, and a discussion of the multifamily subsector in the United States.