An Existing Building Portfolio on a Path to Net-Zero Energy

The John Madden Company (JMC) implemented a $7.1 million energy efficiency project for two buildings in Greenwood Village, Colorado, achieving 30 percent energy savings. By utilizing Commercial PACE (C-PACE) financing, JMC overcame the 'split incentive' problem common in leased buildings, as the loan is repaid as a property tax assessment rather than an operating expense. The project bundled high-efficiency rooftop units with shorter-payback measures like advanced submetering and controls to ensure the investment remained cost-neutral for tenants from day one. The C-PACE mechanism allowed for an 18-year simple payback period, reducing risk for the owner because the loan remains attached to the property regardless of ownership changes.

• The John Madden Company (JMC) completed a C-PACE project costing $7.1 million that is projected to generate $385,000 in annual energy and maintenance savings, resulting in a 30 percent energy reduction across two buildings.
• Commercial PACE (C-PACE) financing allows building owners to pursue projects with longer payback periods—such as the 18-year simple payback in this case—because the loan is a special assessment on the property tax bill and remains with the property if ownership changes.
• C-PACE financing resolves the 'split incentive' issue in leased buildings by allowing landlords to pass the full cost of efficient equipment upgrades to tenants as a tax assessment rather than an operating expense, avoiding rent increases.
• To maintain cost-neutrality for tenants, JMC bundled long-payback items, such as rooftop unit replacements, with shorter-payback efficiency measures including advanced submetering, new controls, evaporative condensers, and lighting improvements.

APA

RMI (2018). An Existing Building Portfolio on a Path to Net-Zero Energy. https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/

Chicago

RMI. An Existing Building Portfolio on a Path to Net-Zero Energy. 2018. https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/.

Wikipedia

{{cite report |author=RMI |title=An Existing Building Portfolio on a Path to Net-Zero Energy |date=16 April 2018 |url=https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018existing, author = {{RMI}}, title = {{An Existing Building Portfolio on a Path to Net-Zero Energy}}, institution = {RMI}, year = {2018}, month = apr, url = {https://rmi.org/resources/an-existing-building-portfolio-on-a-path-to-net-zero-energy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }