Energy Efficiency Lowered Building Costs in 2024
New data shows that efficient commercial properties saved up to 75 percent on annual operating costs.
Updated on Sept. 23, 2026 in Commercial
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A 2024 JLL analysis determined that energy-efficient buildings cost 43 to 75 percent less to operate than inefficient ones. These savings provide significant relief as commercial electricity prices have surged relative to local inflation.
Why it matters
Rising energy costs and stricter building regulations have made efficiency a critical factor in long-term property expenses. By reducing energy waste, property managers can offset price increases that have outpaced inflation by up to 91 percent since 2020.
Energy-efficient buildings realized annual savings of $1.58 to $5.13 per square foot in 2024. In Los Angeles, savings reached $4.06 per square foot, up from $2.78 in 2019, while New York City offices saw savings rise to $2.69 per square foot from $2.27 in the same period.
The players
JLL
A global professional services firm specializing in real estate and investment management that tracks building performance data.
The details
Efficiency considerations are increasingly driven by the growing gap between commercial electricity rates and local inflation, which widened by 11 to 91 percent between 2020 and 2024. As building systems age, owners face higher costs that make energy-saving upgrades essential for maintaining profitability. These improvements leverage modern technology to minimize waste and counter the volatility of utility pricing.
Timeline
2019 served as the baseline period for calculating energy savings in Los Angeles and New York City.
Commercial electricity price increases were analyzed over the period from 2020 to 2024.
The final energy savings data used for this report was collected in 2024.
The Home Front
This development follows the pattern of the 2020-2024 commercial electricity price inflation surge. It highlights a shift in property management where capital expenditures for efficiency are now essential to offset long-term utility cost trends.
Homeowners and managers should evaluate building systems for energy leaks or outdated equipment that may be driving up utility costs. Consult with a licensed professional to perform an energy audit and identify cost-effective upgrades for your specific property type.
The takeaway
Energy efficiency is no longer optional for property owners seeking to manage rising utility expenses. Evaluate your building maintenance schedule to prioritize systems with the highest energy demand and potential for long-term savings.
Further reading
For more on managing property utilities, visit the Commercial section.
Source note: This article includes information reported by Institutional Real Estate, Inc..
Live Poll
Do you believe commercial property owners prioritize energy efficiency enough to lower operating costs?
