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

Case Solution

John D. Macomber, Frederik Nellemann
Harvard Business School ()

A commercial landlord discusses options for financing and undertaking an energy efficient renovation. The situation is aggravated by the rental conditions and the uncertain effectiveness of the intervention. Students must grapple with hurdles, including changes in energy prices, fluctuations in energy demand under different climate scenarios, problems with gross and net rental obligations, and problems finding cash flow and security. appropriate, in order to satisfy a range of potential third party funders. . The business opportunity for third-party financing providers is also being discussed.

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