Of all commercial buildings in the United States, retail buildings have the highest energy costs – approximately $20 billion annually – and account for the second largest percentage of greenhouse gas (GHG) emissions.i Retail buildings can decrease their energy costs and associated GHG emissions through various energy efficiency initiatives. Given their large footprint, need for shopper comfort, and long operating hours, shopping malls in particular can consume a significant amount of energy.
KKR’s real estate portfolio includes three malls which have identified the opportunity to reduce energy use and associated costs and environmental impacts: Broadway Mall in Long Island, New York; Colonie Center in Albany, New York; and Yorktown Center in Lombard, Illinois.
These three malls, which are managed by Pacific Retail Capital Partners, began partnering with KKR’s Green Solutions Platform team during 2015 to improve the energy efficiency of their operations.
In 2015, the properties implemented a number of energy efficiency projects that will lower costs and reduce GHG emissions. For example:
- Broadway Mall is expected save approximately $86,000 and avoid 250 metric tons of GHG emissions annually due to interior and exterior lighting projects implemented in late 2015.
- Colonie Center is expected to save $127,000 and avoid more than 630 metric tons of GHG emissions due to energy efficiency projects, including interior and exterior lighting upgrades that were implemented in early 2015.
- Yorktown Center is expected to save approximately $74,000 and avoid almost 330 metric tons of GHG emissions due to interior lighting, daylighting control, and cooling tower VFD projects that were implemented in mid-2015.