Brick-and-Mortar retail across the U.S. have been declining as online shopping has skyrocketed over the last 7 years. Shopping centers need to find ways to increase their net operating income to keep properties operational. Energy projects are one of the most effective ways this can be done. But what energy projects have the best rate of return? What is lowest hanging fruit available that will have an immediate impact?
Benefits of LED Property Lighting for your Business
The answer is upgrading to LED lighting. Upgrading a property's lighting will show a dramatic dollar saving on the property’s utility bill from day one. On average LED lighting will decrease the properties lighting electric load by two-thirds and increase light levels by a third.
How much can you save by converting to LED lights? Well, some customers have seen up to an 80% percent savings. Lots of cities and states will offer government backed rebates to help fund these. With some of the rebates they can cover up to 50% of Property Value. By putting in LED Lights you can add value to the property. Not only because of the improvement but the maintenance. By adding LED lights your now only saving on your electric cost but your property maintenance. Many people don’t realize how big of a cost old lighting actually is.
Upgrading to LED will also eliminate the properties lighting maintenance cost for 5 plus years. On average an electrician’s hourly rate is $95 an hour plus lift cost. For example, to service a parking lot light would have a labor cost of $285 for three hours and a lift cost of $345 plus product. Simply put it cost up to $695 dollars to service one parking lot head. Times that by the number of fixtures serviced per year. That number is the property’s yearly maintenance savings. This savings will show up again on month one.
With the decline of shopping centers property owners have had to make the tough decision to reduce staff. Facility personal are spread thin to keep the properties appearance and function up to par. Once lighting has been upgraded it allows facility technicians to focus on other task, they didn’t have time to complete. This results in a cleaner and more functioning property. Better looking properties attract more people resulting in more stores and better occupancy.
One of the first things business owners look for is a good location with great visibility. This could be make or break for your business. At night with out proper street appeal could mean everything. People want to feel safe at night and if you have a bad curb appeal or lighting they could easily pass you up for the next person. All the point from above contribute to Curb Appeal.
Visibility and Safety
The first thing you want to make sure is your customers are safe. When driving it a dark parking lot it is very hard to identify small objects. About 20% of vehicle accidents happen in a parking lot. With proper lighting it helps identify all object in a parking lot to ensure all your customers are safe. Safety is number one for your customers. If they don’t feel safe, they won’t shop with you. Many insurance companies will also require certain light levels. If these levels don’t meet certain criteria your claims could be denied. See below of a poor lighted parking lot vs a properly lighted one.
Theft This is practically important. Lots of thieves like to wait in the parking lots of stores and wait to pick out the most vulnerable. Lighting is a great way to prevent this. If you property is lighted correctly then hopefully people will pay attention and bring this to the right attention.
All energy projects will help a properties ability to increase their NOI but go after the low hanging fruit first. Cut the lighting load dollar amount 66% or more, see the immediate savings off the utility bill. Cut out those recurring pesky maintenance cost. Help your on-site staff keep your property maintained and functional. It’s real simple, reach your hand up and pick the apple of the tree.