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Proven, replicable process that delivers returns

The Tenant Energy Optimization Program integrates energy efficiency into tenant space design and construction and delivers excellent financial returns through energy conservation.

Benefits
Tenants using the step-by-step design and construction process typically demonstrate energy savings of 30 to 50 percent, have payback periods of three to five years, and average a 25 percent internal rate of return (IRR). View Benefits
Process
The foundation of the program is a ten-step process that details pre-lease, design and construction, and post-occupancy phases. The process emphasizes the importance of collaboration among tenants, building owners, and service providers. View Process
Case Studies
The process and tools were tested and refined in ten pilot tenant projects, and case studies documenting these experiences were written for others to learn from. Read Case Studies
Resources
To support building owners, tenants, architects, engineers, and other service providers interested in implementing the process, the program provides tools such as technical resource guides, how-to documents, case studies, and other training materials. Get Resources
ULI Tenant Energy Optimization Program
Major players including Estée Lauder, Cushman & Wakefield, and LinkedIn earned returns by using the 10-step process.
Play (4:25)
Case Studies Learn more

Bloomberg LP

Bloomberg LP used the Tenant Energy Optimization process to determine that energy performance measures such as high-efficiency lighting and computer power management software would offer valuable benefits in its New York City office space. Through reduced energy costs, it will take Bloomberg only 2.5 years to earn a payback on those energy performance investments.
Read this case study

Coty Inc.

Coty, a global leader in beauty products, used the process during the design and construction of its tenant space in the Empire State Building. With incremental costs of only $0.71 per square foot, Coty will earn a 328% return on investment (ROI) on the energy efficiency measures identified through the process.
Read this case study

Cushman & Wakefield Inc.

Despite its small amount of leased space (6,000 square feet) in the One World Trade Center building in New York City, Cushman & Wakefield achieved the highest energy reduction of all ten pilot projects (47.5%) and will save nearly $90,000 over its ten-year lease.
Read this case study

The Estée Lauder Companies Inc.

Through reduced energy costs, Estée Lauder will earn a payback on its energy performance investments, including daylight harvesting controls and efficient equipment, in only 3.7 years.
Read this case study

Global Brands Group

Global Brands Group, a worldwide leader in global retail and apparel, implemented the process on three floors of its Empire State Building office, representing over 137,000 square feet. The company will save more than $400,000 over its 15-year lease.
Read this case study

LinkedIn Corp.

By installing high-efficiency lighting and plug load controls, LinkedIn has reduced its energy consumption by over 30% at its Empire State Building office space in New York City.
Read this case study

New York State Energy Research and Development Authority (NYSERDA)

NYSERDA implemented this process in its own office to showcase the value of incorporating energy efficiency into design and construction. In doing so, the agency identified measures to reduce its energy consumption by nearly 40%.
Read this case study

Reed Smith LLP

At the recommendation of its building owner, Brandywine Realty Trust, Reed Smith implemented the Tenant Energy Optimization process in its Philadelphia office space. The leading international law firm will earn a 410% return on investment (ROI) over the life of its 16-year lease.
Read this case study

Shutterstock Inc.

By using the process, Shutterstock identified measures that will save nearly $370,000 in energy costs over the course of its 11-year lease in the Empire State Building.
Read this case study

TPG Architecture LLP

Over the life of its 11-year lease, TPG Architecture will earn a return on investment (ROI) of 162% and reduce energy consumption more than 20% by implementing lighting and plug load control measures identified through the process.
Read this case study
10 Step Process Overview Learn more
1 Select a team
Use a broker with experience in sustainability.
Add other team members (architect, engineer, etc.) in subsequent steps.
2 Select an office space
Choose an efficient base building.
Negotiate lease terms that allow energy efficiency improvements.
3 Set energy performance goals
Consider overall corporate sustainability commitments and investments.
4 Model energy reduction options
Develop a Menu of Measures.
Project performance of different combinations and iterations of measures.
5 Calculate projected financial returns
Review incremental costs and available incentives.
Use Value Analysis Tool.
6 Make final decisions
Determine the optimal package that meets financial (NPV and IRR) and energy performance goals.
7 Develop a post-occupancy plan
Address needs for performance monitoring and occupant training.
8 Build out the space
Execute the planned energy efficiency projects.
9 Execute the post-occupancy plan
Measure and verify performance and perform ongoing maintenance.
10 Communicate results
Perform ongoing reporting.
Learn More View Resources
The New Industry Standard
“The greatest value added to the client is that they literally save money. There’s no question. In addition, they’re saving energy for our planet. Who doesn’t want to do that? Going forward, I will speak to all my clients about it now that I understand the process. It’s going to become easier and easier, and I think it will become the new industry standard.”
Tamela Johnson
Director of Project Management, Gardiner & Theobald