Forbes magazine's contributor Ely Razin wrote an article entitled "Houston We Have a Problem: How Dwindling Oil Prices Hurt Houston's Commercial Real Estate Market". He highlighted the doubling in the office building vacancy rate to 8 million available square feet even as leasing activity declined. As if that were not enough, he notes 22 office buildings are now under construction.
For property owners feeling the pain of falling oil prices and cuts in the Oil & Gas sector, there is some good news. Houston’s recent adoption of the PACE ordinance means landlords can now take advantage of 100% long term financing to upgrade their buildings.
In an increasingly competitive environment, PACE may be the secret weapon needed for owners to re-position their properties - to retain their existing tenants and attract new tenants. While building energy improvement modifications to HVAC Equipment, Lighting, Energy Management Systems, and Windows generally result in an immediate negative cash flow, PACE enables the building owner to upgrade the property and simultaneously lower the building’s operating expenses. Taken together - an upgraded building/lower operating expenses - the owner acquires that needed marketing edge. This may all be accomplished by PACE 100% financing of energy improvement modifications without the owner spending their own capital budget dollars.
PACE’s 100% long term fixed rate financing timing couldn’t be better. PACE may indeed be the best financing for energy improvement upgrades.
If you would like us to highlight these benefits to your company or trade association let us know.
Tim Crockett firstname.lastname@example.org 713-530-7922