The last year was a tough one for commercial real estate around the world, with office and retail sectors particularly impacted by the Coronavirus pandemic. A report by Moody’s Analytics forecasts that U.S. office vacancy rate will hit a historic high of 19.9% in 2021.

For commercial brokers and other real estate professionals, higher vacancy rates translate to lower revenue and the fear of longer-term structural changes to the industry. The good news is that there are still opportunities that can help real estate owners and brokers alike capitalize on new property revenue streams.

In certain markets across the United States, such as in New Jersey, commercial property owners can actually lease rooftop or parking lot space for solar energy.

“It’s like adding another floor to your building,” said Nessel Energy Managing Director Thomas Loredo. “By leasing the roof of your property to install solar, we bring building owners a new steady source of revenue, reduce electrical operating expenses, and we stay longer.”

Nessel Energy’s Rooftop Revenue Program℠ pays landlords to use their rooftop space. Unlike other solar companies, property owners and their existing (or future) tenants can also use less expensive, cleaner solar energy from the roof to lower electrical costs. This results in a double impact to the building’s net operating income (NOI).

Other solar companies in New Jersey are currently offering lease income for local “community solar” projects, but this leaves value on the table for property owners. Under this model, a solar developer pays a lease rate for roof space, however the energy is fully exported to the grid instead of being consumed on-site. Local households and businesses then “subscribe” to get the energy through Community Solar.

With the Nessel Energy model, property owners earn a steady lease revenue and save on electricity costs through a predictable per kilowatt-hour rate for solar on the roof. This results in stable, guaranteed income and energy savings. Plus, Nessel Energy owns and operates the system over the long term, eliminating the headache of an additional appliance to manage.

Brokerage and Referral Opportunities

In order to expand solar energy adoption across the state, Nessel Energy is partnering with real estate brokers and agents to find opportunities and advocate for our roof lease product. At a time when vacancy rates are rising, the Rooftop Revenue Program℠ can be a welcome opportunity to find new income.

Ideal brokers have existing relationships with commercial and industrial building owners in New Jersey and are willing to leverage these relationships to reap new benefits. Brokers and agents get paid a comprehensive referral fee, with the specific payment structure and rate determined by the region and contract terms with the customer.

Interested brokers, property owners, agents, or other market participants are encouraged to contact Nessel Energy through our website or by calling our team at (908) 209-8379. We are happy to answer questions about our program and how to get started.

Together, we’ll get through this pandemic and keep growing the real estate industry.

About Nessel Energy

Nessel Energy provides sustainable energy solutions for real estate owners and developers through our unique Rooftop Revenue Program℠. We leverage over 20 years of real estate experience across commercial, multifamily, and industrial properties to provide unparalleled energy advising and services.