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Property Value Increase


A reduction in operating expenses effectively raises your net operating income (NOI) which, in turn, can significantly increase your property's valuation … all with an energy-efficient lighting retrofit.

Example Calculation

Investment (energy efficient lighting)

 

Net operating income (energy cost savings)

 

Property value increase (assume 7% cap rate)

$100,000

   

$50,000

   

$700,000

Not including energy cost savings benefit