Lighting Retrofit, Wesco
Sierra Commerce Park is a 1.5 million square foot 5- building industrial park situated on 55-acres in Sparks, NV. Originally built in the 1980s, LBA Realty purchased the property in November 2014. Over the past two years, LBA has been repositioning the asset as one of the premier Reno/Sparks Industrial parks available. Among the many renovations pursued in 2015/16, LBA completed exterior painting, asphalt work, new monument & building top signage and renovated the landscaping to be drought tolerant.
Upon completion of our rebranding efforts at the site to make an immediate visible improvement we turned our efforts to additional sustainability measure we could implement. A survey of tenanted spaces revealed several still had inefficient T12 lighting in place. After identifying these locations, LBA Property Management and Leasing budgeted for lighting retrofits to T5 fixtures upon lease renewals. In 2015 and 2016 we converted 84% of the spaces with T12 lighting to T5 lights. The remaining 16% are planned upgrades of spaces rolling in 2017.
One of our larger tenants in the park is Wesco, a Fortune 500 International lighting distributor. In 2016 Wesco renewed their premises with us and asked to retrofit their old T12 lighting with their T5 lighting product as part of their tenant improvement. Their lights were successfully upgraded during their TI and they agreed to partner with us to track their actual electrical savings over the course of a year. Eight months later, they are averaging a monthly savings of $1,500 or 30% of their electric bill! We plan to leverage this key partnership with Wesco to use their product in our remaining lighting retrofits and our exterior LED lighting project budgeted in 2017. Coming up with these creative win-win solutions is what LBA is all about.
The project created value by:
- Aligning with the corporate goal of reducing expenses by decreasing utility costs.
- Doing the “right thing” by reducing electrical consumption.
- Partnering with our tenant to create a win-win for both the landlord and tenant.
- Created a long term partnership with the tenant to use their products successfully in future retrofits.
- As a Fortune 500 tenant, Wesco would make a great partner in our LBA corporate partner program to serve with us on a national level. Our companies could mutually benefit by creating an opportunity to retrofit other LBA buildings with Wesco’s product.
- Lighting retrofit cost: $44,105
- Acutal Savings in the first 9 months: $12,312 or 30% of the electircal costs
- Projected First Year Savings: $16,416