Case Study

CRE On-Site Solar Creates $250,000+ in Potential Annual Lease Revenue

CRE On-Site Solar Creates $250,000+ in Potential Annual Lease Revenue

The opportunity

A leading New Jersey-based CRE firm sought to integrate renewable energy across its portfolio and strengthen its commitment to sustainability.

The firm owns and manages more than 5 million square feet of commercial and residential space across a diverse portfolio of properties. Its holdings include more than 470 residential units and 700 hotel rooms, creating significant energy needs across multiple property types and operations.

With a large and diverse real estate footprint, the firm recognized an opportunity to take a more strategic approach to renewable energy. By integrating renewable solutions across its portfolio, the organization aimed to reduce its environmental impact, support long-term sustainability goals, and strengthen its role in advancing cleaner energy within the communities it serves.

Analysis

Tradition evaluated the client’s portfolio and developed a customized solar strategy aligned with its financial, operational, and sustainability objectives.

Tradition performed a comprehensive site selection analysis and evaluated multiple properties within the portfolio.

A financial assessment was delivered outlining the benefits of on-site solar and associated project risks.

A customized Power Purchase Agreement (PPA) was structured, delivering 20 years of fixed energy costs (transferable to tenants) and annual lease payments to the firm.

The Result:
Generating Revenue Though On-Site Solar

Renewable Energy Generation

The two solar projects totaled roughly 4.5 million kWh of electricity annually.

Recurring Lease Revenue

The customized PPA enabled the firm to select its annual lease payment based on tenant electricity rates, with potential lease revenue exceeding $250,000 per year.

Portfolio Expansion

The firm expanded rooftop solar development across additional assets for participation in the New Jersey Community Solar Program, generating further lease income while supporting broader community access to renewable energy.

See what Tradition Energy can do for your organization

ABOUT US

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.

Ready to optimize your energy procurement strategy? Speak to an expert.

This field is for validation purposes and should be left unchanged.

CRE On-Site Solar Creates 0,000+ in Potential Annual Lease Revenue