Case Study

Real Estate Portfolio Increases Annual Energy Budget Savings by 10–20%

Real Estate Portfolio Increases Annual Energy Budget Savings by 10–20%

The opportunity

A real estate property manager overseeing 180+ properties across eight states sought a more streamlined approach to energy procurement.

Managing energy procurement for common areas across a large, geographically diverse portfolio created significant complexity. The client needed a consistent process that could account for varying market conditions while identifying opportunities to minimize costs and improve budget certainty across individual properties.

The client also required research-based recommendations that could be clearly presented to asset owners, supported by greater accountability and transparency. In select markets, the strategy also needed to incorporate sustainability initiatives, creating a comprehensive approach that balanced financial, operational, and environmental objectives.

Analysis

Tradition developed a customized procurement approach that accounted for the complexity of the client’s multi-state portfolio. By evaluating market conditions, contract structures, and ownership priorities at the property level, Tradition provided actionable recommendations designed to balance cost, risk, and budget objectives.

With a large number of accounts spanning multiple electricity and natural gas markets, Tradition evaluated each property based on its geographic location, regional energy market conditions, and forward price outlook. This approach ensured procurement decisions reflected the unique dynamics affecting each individual property.

Tradition evaluated multiple procurement strategies, including fixed and index pricing structures, short- and long-term agreements, and default utility service. Each option was assessed against ownership’s risk tolerance, budget requirements, and market conditions to determine the most advantageous approach for each property.

Tradition recommended the procurement option that best served each property’s interests and supported every recommendation with a detailed rationale document. These materials enabled the client to clearly communicate the strategy, financial considerations, and supporting analysis to property ownership and efficiently obtain the approvals needed for implementation.

The Result:
Optimized Energy Procurement & Performance

Significant Energy Cost Savings

Tradition’s streamlined procurement process, market intelligence, and timely execution increased annual energy budget savings by an average of 10–20%, substantially reducing costs across the portfolio.

Ongoing Performance & Guidance

Tradition provided transaction-level cost savings analyses, weekly status updates, and performance reports comparing contracted rates against default utility service. Quarterly market research further supported informed procurement decisions.

Advancing Sustainability Goals

In addition to reducing energy costs, Tradition helped the client advance its sustainability objectives through the procurement of Renewable Energy Certificates (RECs) for select properties.

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The Scale and Experience Behind Every Recommendation

For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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Real Estate Portfolio Increases Annual Energy Budget Savings by 10–20%