Summer Issue 2021 - 22

develop
Electrification Is Key
to Decarbonizing the
Building Sector
A new ULI report says now is the
time for the real estate industry to
make the business case for electrifying
more commercial assets and
explains how doing so can contribute
to much-needed climate change
mitigation.
Electrify: The Movement to AllElectric
Real Estate documents how
the commercial real estate industry
can shift toward a decarbonized
future by moving to all-electric
buildings and why real estate firms
need to be aware of the movement.
Although widespread adoption of
all-electric assets is not anticipated
for at least five to 10 years, the
movement toward electrification
and away from fossil fuel combustion
in buildings is well underway.
Many real estate owners and
developers have already begun factoring
the coming building electrification
boom into their bottom line
and strategizing how it may affect
their properties. Along with the
financial benefits, electrification is
a key strategy for decarbonizing the
building sector and offers notable
health and safety benefits.
" How a commercial real estate
asset is powered-whether by fossil
fuels or electricity-is no longer a
niche question only sustainability
experts are considering, " says Emily
Pierce, the report's author and
director of the ULI Greenprint Center
for Building Performance.
" This report highlights not only
what an 'electric asset' is and the
technology that goes into one, but
BUSINESS CASE FOR ELECTRIFYING
IMPENDING
REGULATIONS
 Complying with
" gas ban " policies
FINANCIAL
BENEFITS
 Saving construction
costs
 Optimizing retrofit timing
 Lowering operational
energy costs
 Preparing for
future sustainability
requirements
TECHNICAL BENEFITS
 Driving energy efficiency
 Optimizing smart building
grid-interconnectivity
ENVIRONMENTAL
BENEFITS
 Achieving corporate
decarbonization and
net-zero goals
 Supporting tenant
sustainability goals
 Improving health
and safety
also provides examples of how to
get there with strategies real estate
firms can employ now. Cities across
the U.S. are increasingly setting
carbon emissions- reduction goals
and passing fossil fuel bans, and
more tenants demand sustainable
spaces. Electrify breaks down a
complex topic into manageable
summaries to help guide real
estate firms through this evolving
opportunity. "
Although nuances exist according
to construction type (new or
retrofit), asset classification, climate
zone, and availability of utility fuel
sources (i.e., natural gas, coal,
electricity, or renewable energy),
many of the benefits of moving to
all-electric buildings can be applied
widely across commercial real
estate. They include the following:
l Financial benefits. An all-electric
building can provide significant cost
savings during both development
and operations. According to the
Building Decarbonization Coalition,
gas distribution system expenditures
continue to rise, tripling
between 2009 and 2017 to $14.9
billion per year, which, in turn,
affects the costs of construction.
Beyond the direct cost savings of
avoided gas line installation, developers
are finding that when planning
to go all electric from the start
in new developments, net upfront
costs are minor and the project
forgoes the future cost risks of an
all-electric retrofit.
l Impending regulation. The United
States and countries around the
world have seen a rapid increase
in local regulations restricting or
banning natural gas lines from new
construction, and more cities are
22
URBAN LAND
SUMMER 20 21
Summer Issue 2021

Table of Contents for the Digital Edition of Summer Issue 2021
