How L.A.’s Green New Deal Will Impact Property Owners

Alec Manfre

Los Angeles has presented its own version of the Green New Deal. The sustainability plan is to increase the city’s current energy reduction goals. Overall, the plan aims to move the city’s power to 55% renewable energy sources by 2025, 80% by 2036, and 100% by 2045. For commercial real estate specifically, the plan requires property owners reduce building energy consumption by 22% per square foot by 2025, 34% by 2035 and 44% by 2050.

“As cities are passing or contemplating passing legislation to drive efficiency in buildings, from the owners’ perspective the base of goals is within a reasonable framework and can help them achieve attractive returns back from those investments,” Alec Manfre, CEO of smart building software company Bractlet, tells GlobeSt.com. “Overall, the goals that cities are setting out are exciting, and I think that owners can view them as a win-win for the city and its goals as well as the building and the value that is attached to them.”