There’s clear financial upside for commercial real estate owners to adopt renewable energy, Herbert says. Such properties provide lower operating expenses and command higher rents “Renewable energy solutions increase NOI from day one,” he adds.

It’s also what tenants want. "When tenants choose between two comparable properties, they're more inclined to lease space in the building that has a more sustainable footprint,” Herbert explains.

Research backs this up: According to JLL, green buildings command a 7.1% rent premium in eight major cities in North America over traditional properties.

The critical need for energy reliability

Rising costs are one challenge, but for property owners—and many tenants—the bigger concern is grid reliability.

That’s especially true for industrial and healthcare buildings, Herbert notes. Industrial tenants struggle to power growing electric fleets with existing energy capacity. Meanwhile, healthcare facilities need more power than ever for sophisticated medical equipment. And it goes without saying that energy disruption can have dire consequences in the healthcare setting.

There’s no one-size-fits-all, but renewable energy has a role to play by adding more capacity to the grid. "Some owners are looking to deploy solar and energy storage. For others, it’s microgrids,” Herbert says.

Microgrids can provide additional supply during normal operations and serve as backup during outages. Healthcare facilities with existing generators, for example, can layer in solar and energy storage to boost capacity, prepare for contingencies, and meet their decarbonization goals.

Market stays strong despite headwinds

Recent tariffs on Chinese imports are driving up the cost of solar panels. But Herbert notes that the fundamentals of renewable energy investment are still strong. "Electricity retail rates have risen higher and faster than any negative impact of tariffs," he explains. "When we forecast into the years ahead, the economics of solar and energy storage are still materially better, partly because electricity rate inflation is outpacing solar panel costs."

The Bureau of Labor Statistics reporting that US electricity rates rose 3.6% from 2023 to 2024, outpacing broader inflation, with 2025 forecasted to result in the highest retail rates in almost thirty years.

Taking control of energy’s future

Looking ahead, Herbert sees continuing momentum for renewable energy. Data centers and AI development are consuming more of the available capacity and putting strain on the grid. The nationwide solution requires more energy generation capacity, with green sources playing a vital role.

“Commercial properties can become less reliant on the grid itself and able to supply their own power,” he says.

For forward-thinking property owners, an investment in energy infrastructure has become a strategic differentiator. Properties with resilient, cost-effective systems are better positioned to withstand market volatility and attract premium tenants. That’s the ultimate power play.

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