8/11/23

Retrofitting : How are CAP Rates Impacted by Heat Pump Retrofits

Heat Pumps help you save on the energy required to run your building, bringing down the total operational costs -- helping increase your overall income as a multifamily building owner.

With a heat pump retrofit, if you were to save $1000 per unit in operational costs, on a 4% CAP Rate basis, this would increases the value of a unit by $25,000. On a 100-unit building, the would amount to a Cap Rate value by $2.5 million. Retrofitting with heat pumps increases the value of your building from DAY ONE!

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Retrofitting : The Business Case for Retrofitting a Sub-Metered Building