This research paper develops a substantial, large-scale database of building energy use, energy audit reports, land use, and financial characteristics in New York City to empirically model the hurdle rate for energy retrofit investments, using actual audit data per permitted renovation work. The model considers different property types and building characteristics. Median IRRs of 20% for Multifamily and 24% for Office are consistent with the estimated return of a bundle of NPV-positive energy conservation measures. This paper would be of interest to investment/financing, government, regulatory, construction, property management and business leaders.

Key words: lighting systems/controls, market sizing, HVAC, construction, energy management, research & development, energy conservation

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