Case | HBS Case Collection | February 2012

Edward Lundberg and the Rockville Building: Energy Efficiency Finance in Commercial Real Estate

by John D. Macomber and Frederik Nellemann

Abstract

A commercial landlord analyzes options for funding and accomplishing energy efficiency retrofit. The situation is complicated by lease terms and uncertain effectiveness of the intervention. Students must grapple with obstacles including changing energy prices, variations in energy needed in different climate scenarios, issues in net and gross lease responsibilities, and issues in finding adequate cash flow and security to satisfy a range of possible third-party funders. The business opportunity for third-party funders is also discussed.

Keywords: Finance; Real Estate Industry;

Citation:

Macomber, John D., and Frederik Nellemann. "Edward Lundberg and the Rockville Building: Energy Efficiency Finance in Commercial Real Estate." Harvard Business School Case 212-067, February 2012.