Energy-Savings Initiatives & Net Operating Income

Understanding how potential energy-saving initiatives would impact a property’s Net Operating Income (NOI) and asset value is a vital part of deciding which projects should be approved for implementation. NOI Builder and NOI Builder Lite are two proprietary tools that RealWinWin uses to determine how an energy project’s costs and savings would be allocated between landlord and tenants.  Using an interdisciplinary approach that incorporates energy engineering, property management, leasing, appraisal and real estate finance, RealWinWin generates compelling value propositions that are based on the landlord’s true short- and long-term returns on investment.

NOI Builder™ Will Clearly Tell You:

• How each lease would allocate the costs and benefits of the proposed upgrade between the owner and the tenant(s).
• How other building expenses, vacancy rates, and other factors would affect this allocation.
• How the owner's share of savings affects net operating income, and what effect that would have on the building's appraised value.
• The project's total return, simple payback period (SPP), net present value (NPV), and internal rate of return (IRR) calculated from the owner's perspective.
• How changes to vacancy, holding period, capitalization rates, inflation rates, and other factors would influence the owner's financial return.

All of the data required for this analysis is collected and processed by RealWinWin, making NOI Builder™ the ideal outsourced solution for owners/managers who need to optimize their capital budgeting decisions without a tremendous investment in time and effort.