Going Green for Earth Day
Four ways companies can make their commercial facilities more sustainable
Real estate is one of the biggest CO2 emitters, with buildings accounting for 30-34% of global energy consumption. This makes it a critical sector in the global effort to reduce carbon emissions and combat climate change. Fortunately, there are many solutions available to help reduce the carbon footprint of real estate, while also reducing energy costs, improving building safety and boosting operational efficiency.
With Earth Day around the corner, this article discusses several of the most impactful changes companies can implement to make their buildings more sustainable.
Install Solar Panels
One of the most effective sustainable upgrades for commercial facilities is the installation of solar panels to a roof or carport. Solar panels provide a clean source of energy and can help companies save on their cost of power. Additionally, companies may be able to receive renewable energy credits for offsetting carbon emissions depending on their location of operation.
Companies who install solar panels can minimize their carbon footprint and contribute to the wider goal of reducing greenhouse gas emissions. It can also help them achieve their corporate sustainability goals and align with the growing interest in ESG broadly among stakeholders, including investors, customers and employees.
Upgrade to LED Lighting
A simple step that companies can take to improve a building's sustainability is switching to light-emitting diode (LED) bulbs. LEDs produce light up to 90% more efficiently than other types of light bulbs, which can significantly reduce energy consumption. Additionally, LEDs do not need to be replaced as often as incandescent or fluorescent bulbs, lasting as long as 14 years in a building which uses lighting for approximately 10 hours each day.
LED lightbulbs are a more sustainable option not only due to their efficiency and longevity, but also because they do not have the environmentally hazardous materials incandescent bulbs contain (including argon and xenon gases). LED lights also give off very little heat compared to other types of lighting, therefore helping reduce a building’s temperature and limiting the power load on its mechanical systems.
The payback period for an LED retrofit is shorter than many other sustainable upgrades, making it a great starting point for companies looking to make their buildings more efficient.
Invest in Water Recycling
Climate change has caused water scarcity to become an increasing issue of concern. As a result, water recycling has emerged as a viable option to provide a sustainable source of water in commercial facilities.
A leading option for reducing water waste and preserving this vital resource is to recycle greywater. Greywater refers to lightly used water from sources such as sinks, showers and washing machines. Instead of directing this water into the sewer system, facilities can instead treat it and repurpose it for non-potable uses such as toilet flushing and irrigation. Instead of wasting freshwater, recycled water can be used when potable water is not needed.
By harnessing the latest technology, water recycling has the potential to revolutionize the way we manage water waste and conserve this precious resource. As water scarcity becomes an increasingly pressing issue, water recycling will be an important step companies can take to make their buildings more sustainable.
Utilize IoT Sensors
As businesses leverage technology to help them operate more sustainably, integrating Internet of Things (IoT) technology has proven valuable in helping companies manage building efficiency on a daily basis. In particular, IoT sensors can collect data and bridge the gap between the digital and the physical world, helping companies gather information on things like energy consumption, temperature, air quality and occupancy levels.
For instance, IoT sensor data can help promote sustainability by helping companies monitor energy consumption and manage power usage. IoT sensors can also be vital in helping continuously monitor particulate matter (PM) concentrations and other chemicals, gasses and contaminants in the air, allowing companies to take measures to improve occupational safety and reduce greenhouse gas emissions.
Lease Your Real Estate? Partner With Your Landlord!
Implementing sustainability initiatives can make a huge difference in reducing a building’s carbon footprint. Companies that lease their real estate may think implementing these changes isn’t possible, but that may not be the case. Leveraging their landlord relationship is a great way to explore options for sustainable building improvements.
W. P. Carey is a leading real estate investor with a portfolio of over 1,400 properties, and recently launched a suite of sustainability and efficiency offerings for its tenants. With no upfront costs, W. P. Carey can help tenants manage the implementation of sustainability projects such as solar, LED lighting and smart metering, which can save money, reduce carbon emissions and benefit the environment. Contact W. P. Carey today to learn more!
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Flexible Solar Solutions Built Around Tenant Needs
As energy costs rise and decarbonization becomes an increasingly important business priority, many companies are exploring solar—but not every project looks the same. Through CareySolar, part of the energy solutions offering within Carey Tenant Solutions, we provide multiple pathways for solar adoption, helping tenants reduce operating costs and advance their sustainability objectives. Our approach is intentionally flexible, enabling close collaboration with tenants on solar strategies that align with their operational preferences and long-term goals. Tenants can take advantage of this offering through several project types: Landlord-Owned Solar: Turnkey Solutions with No Upfront Tenant Capital For tenants seeking the benefits of on-site renewable energy without the complexity of ownership, W. P. Carey can fund, design, install and maintain the solar system. Our turnkey solutions allow tenants to access on-site solar with no upfront capital investment or operational responsibility. W. P. Carey will sell electricity generated by the system to the tenant, which can significantly reduce tenants’ utility expenses, provide greater energy price stability and support corporate sustainability objectives. For example, in 2024, W. P. Carey entered into a power purchase agreement with an existing tenant, a healthcare products distributor, to fund and manage the installation of a roof-mounted solar system. The system became operational and began generating power in early 2025, offsetting approximately 90% of the building’s total power consumption. As a result, our tenant was able to significantly reduce its carbon footprint and utility costs without deploying upfront capital. Community Solar: Unlocking Value from Tenant Rooftops In addition to traditional solar, we can partner with tenants to develop community solar projects directly on their rooftops, transforming underutilized space into a shared renewable energy resource that generates power for the surrounding community. This energy is usually sold at a discount to both the tenant and local subscribers, reducing utility costs while also improving grid resilience and reliability. Another option is that tenants can receive Renewable Energy Certificates (RECs) from the system to offset their annual power consumption. Rooftop community solar represents another way we deliver creative energy solutions that benefit tenants, communities and our portfolio. We recently entered into an agreement with our tenant, a grill manufacturer, to manage and fund the construction of a 6.1 MW rooftop community solar system at their leased facility. Upon completion, the solar installation is expected to generate enough power for an estimated 580 homes in the surrounding community. Tenant-Owned Solar: Flexibility to Build, Own and Operate W. P. Carey also offers tenants the flexibility to build and own on-site solar systems, giving them full control over their projects. We partner closely with tenants to enable solar development at their leased facilities, allowing them to customize system design, capture available economic incentives and seamlessly integrate solar into their broader energy strategy. We supported our tenant, Sonae MC, on the installation of a 3.1 MW solar roof on their leased facility in Portugal. The solar roof offsets approximately 35% of the building’s annual consumption and thus significantly reduces the facility’s electrical power grid needs, helping Sonae save on energy costs. A Partnership Approach to Energy Solutions Solar is not a one-size-fits-all solution. Carey Tenant Solutions is designed to meet tenants where they are and evolve alongside their needs. By combining capital, real estate expertise and a long-term ownership mindset, we help tenants pursue practical, scalable energy solutions that support their long-term goals.
Forging Long-term Partnerships Through Tenant-centered Real Estate Solutions
At W. P. Carey, we view real estate as a long‑term partnership — not a one‑time transaction. We stay closely connected with our tenants, aligning our capital and real estate expertise with the evolving needs of their businesses. That philosophy is embedded in Carey Tenant Solutions™, our platform designed to support tenant growth beyond the initial acquisition. Through follow‑on investments, we help tenants modernize, expand, redevelop, relocate and improve the energy efficiency of their facilities — allowing them to focus capital on what matters most: running and scaling their core business. Below is an overview of the core capabilities within Carey Tenant Solutions and how each can benefit existing and prospective tenants. Build-to-suits In a build‑to‑suit, W. P. Carey funds and manages the construction of a new facility — or the expansion of an existing one — tailored to the precise specifications of a prospective or existing tenant. Upon completion, the tenant enters into a long‑term net lease while retaining full operational control of the new or expanded facility. We offer two flexible approaches to build‑to‑suits: Build-to-suit financing: We provide construction capital while the tenant’s developer executes the project, either through traditional construction financing funded over time or via take‑out financing upon completion. Turnkey build-to-suit: We finance and manage the entire construction process, from site selection to final delivery. For tenants, the primary advantage of a build‑to‑suit is capital efficiency. Rather than tying up their capital in real estate, tenants can redeploy resources toward growth initiatives, innovation or strengthening operations — while still gaining a facility designed specifically for their needs. Learn how this approach helped support our tenant Cuisine Solutions’ growth. Redevelopments W. P. Carey offers comprehensive redevelopment capabilities, managing projects from initial design through delivery. Combining our internal development expertise and long‑standing relationships with leading architects, consultants and contractors, we assemble experienced teams capable of executing even the most complex redevelopment projects. Our redevelopment capabilities span: Repositionings, where we upgrade, modernize or expand an existing building while maintaining its core use. Redevelopments, which involve unlocking value of infill locations through adaptive reuse and ground up construction of state-of-the-art, primarily industrial, properties that meet the demands of modern occupiers. W. P. Carey’s turnkey redevelopment process is comprehensive and includes: Pre-construction planning and optimization Development feasibility and due diligence Zoning and entitlement approvals Design and permitting Budgeting and scheduling Construction management Creative lease structures Sustainable development Overall efficiency Our proactive approach allows us to work directly with incoming tenants to shape a property around their exact operational requirements, while enhancing the quality of our portfolio by retaining the best positioned assets in the highest barrier-to-entry locations. Learn more about our carbon-neutral redevelopment of a Class-A warehouse for a global IT services company. Energy Solutions Through Carey Tenant Solutions, we also help tenants reduce operating costs and advance their sustainability goals by designing, funding and implementing renewable power and energy efficiency projects directly at their facilities. We believe that improving the quality and sustainability of our assets delivers tangible benefits across our portfolio — increasing renewal probabilities, strengthening tenant relationships and enhancing long‑term asset value – all while helping our tenants reduce their carbon footprint. Our energy solutions include: On‑site renewables, including CareySolar® Efficiency retrofits, such as LED lighting upgrades Smart building technologies, including IoT‑enabled metering Green infrastructure, such as EV charging stations and battery storage Carbon‑neutral construction By integrating these solutions into our long‑term ownership strategy, we help tenants operate more efficiently today while building assets that are better positioned for the future. Read how we collaborated with our tenant, a healthcare products distributor, to fund a rooftop solar installation. A Platform Built on Partnership Collaboration with our tenants — and support beyond the initial transaction — has always been core to how we operate at W. P. Carey. With Carey Tenant Solutions, we have formalized and unified those capabilities, bringing decades of experience together under a single platform to deliver one of the most comprehensive tenant service offerings in the net lease industry. Interested in exploring Carey Tenant Solutions? Get in touch today.
Project Management Teams Deliver Big Value for Tenants
There’s no question that the current real estate development market is challenging. Labor shortages and rising material costs are creating hurdles in the construction industry, which is being compounded by limited inventory of vacant real estate for certain property types, leaving companies with very few options for additional square footage or property upgrades. The good news is that companies that lease their building may be in luck thanks to a high-value service some landlords are offering: a dedicated project management team. Project management teams come in all shapes and sizes, but they have the potential to handle all types of development projects (e.g., expansions, renovations and build-to-suits) as well as deliver turnkey solutions. REITs and other longer-term investors will often invest in these teams, priding themselves on being a partner to their tenants for the duration of the lease and beyond. Project management teams manage everything from conceptual planning to design to construction management, assembling a team of architects, consultants and contractors. This holistic service is particularly valuable since most tenants don’t have the resources—be it the capital, relationships or expertise—to execute these projects themselves. And leveraging their landlord’s project management team is often more efficient and cost-effective than hiring a third-party developer, and enables them to focus on their core business, which is most likely not real estate development. In today’s market, having access to a dedicated project management team with a shared interest in their tenant’s business and the expertise to effectively navigate current challenges is more valuable than ever. Here’s why: Renovate, modernize or convert an existing building Project management teams can adapt an existing building to reflect the tenant’s evolving real estate needs. This could encompass a full renovation and modernization of an outdated building or converting one property type to another (e.g., office to R&D) to reflect a changing business model. Moreover, with prices continuing to increase having a project management partner that can finance the upfront costs associated with these projects is critical. In addition, working with a project management team that understands the ins and outs of a tenant’s business along with being able to offer a tailored approach means the final product will be ideally suited to the tenant’s long-term needs, in comparison to if the tenant worked with a third-party developer. Expand an asset to accommodate a need for more space In order to continue growing, many tenants need to expand their real estate footprint to make room for more equipment, inventory and more. However, record-low availability of real estate means that many tenants can’t find the additional space they need. An in-house project management team can help by working with tenants to expand their existing space to accommodate growing business needs. A huge benefit of this approach is that tenants can typically continue operating in their existing facilities during an expansion, offering minimal disruption to day-to-day operations. Retrofit an existing space to make it more sustainable With energy costs continuing to soar, there’s never been a better time for tenants to update their properties to make them more sustainable. In-house project management teams can work on a variety of sustainability projects including renewable energy opportunities – such as solar panel installations – energy efficiency retrofits and green building certifications. These sustainable projects can reduce tenants operating costs and help reduce scope 1 and 2 emissions to align with their sustainability goals. Conclusion For landlords, investing in a project management team is a win-win. Turnkey project management solutions add value for tenants by adapting their property to meet their long-term needs, helping increase lease renewals while also improving the overall quality of the portfolio. From an investment perspective, having a project management team also provides a steady pipeline of attractive internal investment opportunities, while enabling the landlord to have project oversight on deals where they are also serving as the capital provider.