In light of new technological innovations in LED lighting, LEDs are now making their way to the forefront of preferred lighting options for multifamily property owners.
LED lighting uses 75% less energy than its incandescent counterpart and produces significantly less heat, lowering cooling costs significantly for property owners. Today’s LED lighting is no longer the buzzing, flickering, off-colored lighting of ten years ago, and as its performance has improved, its prices have dropped. LED lighting also lasts 25% longer than incandescent lights, making them a lasting investment. For owners, it is now viewed as higher quality than incandescent light, making it an excellent marketing tool for the property.
Reluctance to Upgrade
Multifamily property owners have been slow to adopt LED lighting, as the upfront cost of upgrading an entire community’s lighting system is still prohibitive. Oftentimes, other more visible investments in the property end up taking priority.
However, with nearly one in six American households residing in multifamily properties, this has resulted in poor energy efficiency at a grand scale. An increase in federal and state policy addressing energy efficiency has laid the groundwork for the adoption of LEDs by the multifamily housing sector. This, along with aging systems and the growing cost of incandescent lighting, has placed increased pressure on owners to upgrade.
LED Lighting as a Service
As a business model, LED lighting and general lighting efficiency is now being marketed as a service to property owners. It is an attractive option to owners that have trouble fitting the costs of a complete retrofit into their budget.
Owners can now rent LED lighting, allowing a minimal entry cost to better building performance. Additionally, the LED provider handles the design and implementation of the system, reducing the burden significantly for the owner. Market projections are optimistic, with global lighting as a service estimated to grow to $2.6 billion by 2026 (compared to its current $662.6 million market in 2017).
The Effect of Lighting on Residents
Additionally, there is significant evidence of the correlation between lighting and human well-being. The power of LED lighting is in its ability to achieve specific performance and color ranges. It can be engineered to replicate natural light, an invaluable tool is making artificial light more human-friendly. Studies have shown correlations between poor lighting condition and depression, neurological diseases and different types of cancer. If LED lighting is able to boost human health and mood, residents will begin to expect and demand this improved quality of light.
We would be happy to discuss the implications of energy efficiency for your property.
For more information on buying, selling or managing multifamily and commercial properties, contact us today.
