Energy Efficiency Lowered Building Costs in 2024

Data shows that energy-efficient office properties saw significantly lower operating costs last year.

Updated on Sept. 23, 2026 in Commercial

Bold flat-color editorial illustration showing a repeating pattern of metallic building facade panels, representing modernized commercial infrastructure. — A 2024 JLL study found that energy-efficient commercial properties operate at 43 to 75 percent lower costs than less efficient counterparts. AI Illustration. Upload story photo >

Live Poll

Do you believe commercial property owners prioritize energy efficiency enough to lower operating costs?

A 2024 JLL study revealed that energy-efficient buildings operate at 43 to 75 percent lower costs than their inefficient counterparts. These efficiency measures provided annual savings between $1.58 and $5.13 per square foot.

Why it matters

Rising energy prices and increasingly stringent building regulations are driving a shift toward prioritizing efficiency. Commercial electricity costs have outpaced local inflation by as much as 91 percent in some markets since 2020.

Energy-efficient buildings achieved savings of $1.58 to $5.13 per square foot annually. In Los Angeles, office energy savings grew from $2.78 per square foot in 2019 to $4.06 in 2024, while New York City saw an increase from $2.27 to $2.69.

The players

JLL

JLL is a global professional services firm that specializes in real estate and investment management.

The details

Older building systems are increasingly costly to maintain as commercial electricity rates rise compared to local inflation. Owners are facing pressure from stricter regulations and the high cost of energy to modernize systems for better performance.

2019 served as the baseline energy savings period for Los Angeles and New York.
Electricity prices were measured against local inflation between 2020 and 2024.
2024 marked the final year of the reported energy savings data.

Culture Shift

The growing focus on building sustainability reflects a broader shift toward integrating environmental performance into property valuation. This trend mirrors the transition away from legacy infrastructure as owners prioritize long-term asset viability over short-term operational costs.

Building owners may face higher utility overheads if they do not prioritize system upgrades. For tenants, this shift suggests that energy-efficient leases could eventually lead to more stable and predictable occupancy costs.

The takeaway

Commercial real estate owners can significantly mitigate the impact of volatile electricity markets by investing in energy-efficient infrastructure. Modernizing building systems is no longer just a sustainability goal but a pragmatic financial strategy to lower operating expenses.