Zero.

Decarbonization in multifamily properties is a hot topic right now, and our recent webinar gave us a chance to explore the topic further. We discussed green leases, the hurdles of collecting utility data, and how to make ROI calculations work for decarbonization projects.

Katie Rothenberg from AvalonBay Communities and Chris Laughman from Greystar shared some fantastic insights, and it was great to see so many of you engaged and asking thoughtful questions.

If you couldn’t make it, don’t worry—we’ve pulled together a few key Q&A highlights from the session that you can review below. 

Green Leases and Data Collection: Strategic Insights

Collecting tenant utility data through green leases brings operational hurdles, especially with high turnover. But, as Katie and Chris emphasized, high-quality data is crucial for benchmarking, identifying efficiency gaps, and making informed investments. Shifting from a compliance approach to a strategic one turns data into a powerful asset, underpinning meaningful decarbonization.

Solar in Master-Metered Properties: An Untapped Advantage

Centrally-metered properties, though rare, offer unique potential for solar management. Centralized systems, especially in student housing, simplify solar integration and control. As solar incentives grow, properties with master metering could gain a competitive edge. This setup could be key for maximizing returns on sustainable energy investments.

Decarbonization ROI: Protecting and Growing Value

Effective Return on Investment (ROI) calculations means considering more than just immediate cost savings. Katie explained how AvalonBay views ROI with a risk management lens, focused on aligning properties with future regulations while preserving asset value. Chris added that ROI in decarbonization goes beyond compliance—it’s about stabilizing portfolios with resilient investments.

Electrification: A Resilient Strategy

Electrification isn’t just about sustainability; it’s about aligning properties to take advantage of a decarbonizing grid. AvalonBay’s focus on electrifying new builds serves as a strategic test bed, offering insights to guide future projects, including retrofits. Chris highlighted how electrification prepares assets for tomorrow’s standards, reducing exposure to future energy costs and regulatory pressures.

Scaling Decarbonization Across Portfolios

Scaling decarbonization is not a  “one-size-fits-all” activity. While LED retrofits are a scaleable start, Katie and Chris stressed that impactful deep decarbonization strategies need to adapt to property needs across diverse markets. A scalable model ensures consistent ‘market appropriate’ carbon reduction, aligning with evolving investor and tenant expectations.

Wrapping It Up

Decarbonizing multifamily properties is both highly achievable and necessary for building future-proofed investment portfolios. At Audette, we’re here to support the development of these strategies and turn them into action, helping you make sustainability a measurable competitive advantage.

If you’re interested in more details, see the additional Q&A below. Thanks to everyone who joined—these conversations drive us all forward.

Best,
Christopher Naismith
CEO, Audette

Additional Q&A Highlights

Q: Have you looked into the cost of adding a whole-building electric energy meter?
Chris (Greystar): Where switch gear is accessible, we’re able to track energy use better, though utility-owned lines can limit this option.

Q: How are split incentives managed in decarbonization upgrades?
Chris (Greystar): It’s challenging and lacks a fully tested solution.
Katie (AvalonBay): We’ve introduced cost-sharing terms with retail tenants in mixed-use spaces, though not yet in residential.

Q: What are the applications of tenant-level data for multifamily assets?
Chris (Greystar): Tenant-level data helps benchmark energy use, spot inefficiencies, and improve equipment performance for proactive management.