Energy retrofits are becoming crucial for buildings to remain competitive as tenant demand shifts towards more sustainable spaces as well as avoiding non-compliance amid tightening regulations.

“Enhanced energy efficiency attracts the “green premium” from the growing number of tenants who value sustainability, helping futureproof real estate portfolios,” says Wang. 

JLL research found that a light to medium retrofit – addressing elements from lighting to mechanical, electrical and plumbing equipment – can reduce energy consumption by 10%-40%.

AI is increasingly helping owners and investors to take a more informed, data-driven approach on their overall energy retrofit strategy and better navigate uncertainties in cost-effectiveness and payback periods.

Highly specific, AI-driven energy models can guide retrofits to improve a building’s energy efficiency, supporting the creation of detailed digital twins. These simulate building energy demand under different design parameters and can be a crucial factor in accelerating retrofits to align with net-zero targets.

“Mitigating devaluation and stranding risks is a key benefit of energy retrofits. AI-powered energy modelling can help establish a data-driven investment strategy not only for single buildings but across portfolios as owners work toward decarbonization targets over the next five years,” says Balakrishnan.