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Commercial Real Estate

Jim Lob: A Drop in DFW Office Energy Costs

Here's some good news for a change: North Texas office buildings have seen energy costs go down during the past three years. Tenants in many buildings paid up to 30 percent less in 2011 than in 2008. Here are some examples.
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Do you ever want to go out in the back yard and scream out loud in frustration? Everyone is concerned about our U.S. budget deficit. Right? And the solutions are out there. We know that. Want an example?

Did you know there has been an energy-expense reduction at a large number of office buildings over the past three years? Electricity that we use to power just about everything we do within our office space is approximately 30 percent less expensive than in 2008. (See examples for Dallas area buildings in chart below.)

Why? Largely because natural gas is so cheap and so readily available within the United States or Canada. And fossil fuels generate about 70 percent of our electricity. So why did we just veto a new natural gas pipeline thru the middle of our country? (Politics as usual.) Energy independence and new jobs are waiting for rational thinking policy makers.

In the meantime, though, corporate users of office space have already benefited—as have some residential customers. The rest of the economy may follow suit someday.

How Electricity Gets to End Users:

Generation > Transmission > Distribution > Contracts w/ Building Owners > Corporations

As senior vice president of UGL Services, Jim Lob co-manages the firm’s brokerage operations in Dallas. He specializes in large corporate headquarters relocations and build-to-suit projects. Contact him at [email protected].

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