The smart retrofit of the nation’s energy-hogging buildings – and the businesses that rely on them – are expected to be a growing source of financial opportunities for commercial real estate investors. In an interview with Campus Capital, an investment blog, Core Power Group founder and CEO Eric Scoble says his company will focus on the types of developments that can provide a strong, sustainable return on investment.
“We are going to offer you attractive returns on investment,” he said, citing ongoing studies that show commercial buildings can generate returns of 50 percent on renovation projects. Commercial buildings account for $12 trillion in the U.S. economy.
Core Power owns and operates some 13 million square feet of commercial real estate, including 11 metro areas, on four continents. Its recent investments include $750 million worth of previously owned U.S. office buildings in July 2016; 22 million square feet of investments with the Fisher family in March 2017; and several multi-family buildings.