Commercial real estate owners often manage procurement for base building / common area loads

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Commercial Real Estate Energy Use Profile

Commercial Real Estate operations typically use Varies widely by building type and size per month. HVAC and lighting accounts for the majority of consumption. Summer cooling peak for most markets; winter heating in northern climates

Triple-net leases shift energy cost to tenants — landlord only controls common area procurement

Natural gas: Heating in northern climates; central boiler systems

Most Commercial Real Estate accounts are served under a Medium to large commercial rate schedules; Class A towers on LGS/industrial. Demand charges apply in most commercial markets and can represent 30–50% of total electricity cost, independent of the supply rate.

Common Energy Challenges for Commercial Real Estate Operators

Lease structure determines who benefits — critical to clarify before procurement

Large portfolio managers have inconsistent procurement across properties

Gross or modified gross leases make landlord directly responsible for energy costs and therefore motivated to reduce them

Load factor of Moderate — tied to tenant occupancy patterns means Commercial Real Estate facilities have variable demand profiles. Variable demand requires careful contract structuring to avoid cost surprises.

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How We Procure Energy for Commercial Real Estate Accounts

Our process for Commercial Real Estate clients:

  1. Load analysis: We pull 12–24 months of interval data and build your demand profile. For Commercial Real Estate accounts, we pay particular attention to peak demand events driven by Morning occupancy startup and afternoon peak cooling.
  2. Competitive bid: We submit your load profile to 30+ suppliers simultaneously. They compete on the same data. You get multiple offers with our plain-English translation.
  3. Contract review: We read every contract before recommending it — checking demand charge treatment, auto-renewal terms, ETF structure, and any pass-through mechanisms.
  4. Execution and monitoring: We handle contract paperwork and flag your renewal window 6–9 months before expiration.

Lease structure review is prerequisite — determines scope of opportunity

Contract Strategy for Commercial Real Estate Energy Buyers

For Commercial Real Estate accounts, we typically evaluate fixed-rate contracts (12–36 months) for budget certainty. For larger or more sophisticated accounts, indexed structures that track wholesale markets may offer better economics if managed actively.

Multi-site Commercial Real Estate portfolios can aggregate load across locations for more supplier competition and often better rates per site than single-location procurement.

Commercial Real Estate Energy by State

We've built resources for Commercial Real Estate energy procurement in each major deregulated state:

Frequently Asked Questions

What do Commercial Real Estate businesses typically pay for electricity?

Commercial Real Estate facilities typically use Varies widely by building type and size per month. Rates vary by state, market conditions, and contract structure — generally 6–12 cents/kWh all-in in competitive markets.

What drives electricity costs for Commercial Real Estate operations?

HVAC and lighting is the primary electricity consumer in most Commercial Real Estate facilities. Lease structure determines who benefits — critical to clarify before procurement

What contract type is best for Commercial Real Estate energy buyers?

Lease structure review is prerequisite — determines scope of opportunity Most Commercial Real Estate operators benefit from fixed-rate contracts for budget stability.

How do demand charges affect Commercial Real Estate facilities?

Demand charges — based on peak 15-minute interval demand — can represent 30–50% of a Commercial Real Estate electricity bill. Peak demand is typically driven by Morning occupancy startup and afternoon peak cooling.

Can a broker help with multi-state Commercial Real Estate energy procurement?

Yes. We aggregate load across multiple locations and run unified quote processes. Multi-site procurement creates more supplier competition and often produces better rates than procuring each location separately.