Submetering industry set to expand in 2012
March 26, 2012 - Green Buildings
Submetering is no longer a foreign term in the multifamily and commercial property industries. With the green movement in full force, property owners are using utility submetering as a way to lower operating costs while still appealing to environmentally conscious residents. In fact, water submetering has even become a required practice in certain cities and states. Georgia's Water Stewardship Act requires all multifamily and commercial units to be submetered by July of 2012. Areas of California and Texas have also passed similar laws that will take full effect in the next few years.
Todd Quarterman, president of nationwide submetering company WaterWatch Corp., said, "Utility submetering helps properties to benchmark energy usage and offers a consistency in predicting utility expenses. As the market continues to improve this year and developers play catch-up, the demand for utility submetering will only continue to grow."
Vacancy rates for multifamily properties are predicted to drop to 4.9% in 2012, while commerce department statistics expect rents to spike approximately 7% in the next two years, compared to the normal 1% increase seen in recent years. These statistics, combined with the influx of millions Gen-x and Gen-y renters that will soon enter the rental market, make 2012 the perfect time to upgrade a property's energy efficiency.
The rise of submetering popularity has also led to a variety of tax rebates and tax deductions aimed at this energy efficient practice. For example, the Energy Policy Act (EPACT) provides a $1.80 per s/f tax deduction for the design and construction of energy efficient buildings through December 31, 2013. A variety of energy efficiency rebates that can also apply to submeter installation are also found on the Database of State Incentives for Renewables and Efficiency website (Dsireusa.org).
Quarterman said, "Occupancy level, utility rates, and time constraints are all reasons why owners tend to hold off on submetering, but my experience has been that once owners enjoy the benefits of one submetered property, they move quickly to submeter their remaining portfolio."
Allison Sass is the online content manager at WaterWatch Corporation, Rochester, N.Y.