Energy Efficiency as a Driver of Value Creation in Commercial Real Estate Strategies

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master_Mäntylä_Lari_2025.pdf (1.18 MB)

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School of Engineering | Master's thesis
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Date

2025-01-25

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Mcode

Degree programme

Master's Programme in Real Estate Economics

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en

Pages

92

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Abstract

This thesis investigates how enhancing energy efficiency drives value creation in real estate investment strategies. Using a mixed-methods approach that includes analysis of six energy efficiency projects and semi-structured interviews with industry professionals, the study examines the financial, operational, and strategic impacts of integrating energy efficiency measures into underperforming properties. The findings confirm that incorporating energy efficiency is essential for repositioning properties and enhancing their market competitiveness and long-term value. Tailored interventions led to significant improvements in property performance, such as reduced operating costs, improved energy classifications, and increased attractiveness to investors. While economic benefits remain the primary motivator for investors, there is a growing tendency to balance financial returns with environmental and social considerations due to regulatory pressures and evolving market demands. The research also highlights the significant role of external drivers, including regulatory frameworks and financial incentives, in promoting the adoption of energy efficiency measures. However, challenges like technical complexities, market variability, and regulatory uncertainties emphasize the need for meticulous planning, continuous monitoring, and effective management to realize the full potential of energy efficiency investments.

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Supervisor

Junnila, Seppo

Keywords

Energy Efficiency, Commercial Real Estate, Investment Strategies, Value Creation, Financial Performance, Regulation

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https://urn.fi/URN:NBN:fi:aalto-202503182844

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[dipl] Insinööritieteiden korkeakoulu / ENG