Energy Disclosure

For buyers of commercial buildings to understand if they are buying an energy efficient or inefficient building, a meaningful energy disclosure is necessary.   If buyers, lessors, and lenders can understand the relative energy efficiency of buildings then the market will reward efficient buildings.

With the passing of California’s Assembly Bill 1103, energy efficiency concerns have moved to the forefront of property owner’s minds.  California’s AB 1103 mandates that, beginning in 2010, all non-residential buildings must disclose their building energy rating (the measure of a building’s energy efficiency) when the building is financed, sold or leased.  This means that potential buyers, tenants and lenders will be focusing not only on traditional considerations such as price and amenities, but will be comparing energy ratings as well.  Building owners and sellers can increase their energy rating by hiring a professional energy consulting firm to conduct an energy audit of the building and by implementing the recommended energy efficiency projects.

This website is serving as a forum to communicate the best energy disclosure practices.