The Future of Investing in Green Commercial Real Estate in Lake Havasu City, AZ
Lake Havasu City, Arizona, has a dynamic commercial real estate market that offers more opportunities than just its tourism industry. While market trends constantly change, sustainability is shaping the future of local CRE investment. This post explores the green future of commercial real estate in Lake Havasu City, AZ.
Sustainability Trends Influencing Commercial Real Estate in Lake Havasu City, AZ
Before looking at specific trends, let’s explore why green CRE investing is gaining momentum in the Lake Havasu area. In large part, this trend is an investor response to market demand. Commercial real estate tenants have an increasing desire for green properties. A growing consumer segment also prefers to do business with companies with sustainable operations. Rising energy costs and evolving regulations also lead many investors to favor green practices. There’s also a growing awareness of environmental responsibility in Lake Havasu City.
Increasing Energy Efficiency and Clean Energy Investments
Energy efficiency is a top priority in green CRE investing. Investors are buying buildings and making various energy-efficient updates. Additionally, developers deploy strategies to ensure new buildings are more efficient. For example, builders integrate passive design strategies, such as reflective roofing, insulated building envelopes, and strategically placed windows. Automation also transforms energy management, with smart HVAC, lighting, and occupancy sensors optimizing energy use. With Lake Havasu’s abundant sunshine, solar panels can offer clean, affordable energy.
A Focus on Water Conservation
With the lake being the region’s most valuable resource, water conservation is a cornerstone of local sustainability efforts. Strategies like rainwater harvesting, low-flow fixtures, and smart irrigation play a role. The city also implements a Low Impact Development (LID) master plan to protect and conserve water resources. That could include using permeable hardscapes, bioretention cells, rainwater harvesting, and vegetated filter strips.
Using Sustainable Building Materials
Sustainable building materials will play a growing role in local real estate development. Investors and developers prioritize locally sourced and recycled materials to reduce construction’s environmental footprint. Reclaimed wood, recycled steel, and low-VOC paints improve sustainability while enhancing indoor air quality. Energy-efficient materials like cool roofing and insulated concrete forms can help maintain comfort while increasing efficiency. Modular and prefabricated construction methods minimize waste and speed up development timelines.
State and Federal Incentives
Various state and federal incentives may also drive adoption or sustainability in commercial real estate. For example, section 179D of the IRS code offers a tax deduction for energy-efficient commercial buildings. The federal government also provides incentives for using renewable energy. Arizona currently offers tax credit for commercial properties installing solar energy devices. However, incentives can expire, and governments may issue new incentives over time. Investors must review programs to see what’s available and learn about eligibility.
Are you interested in green commercial real estate investments in Lake Havasu City? Reach out to Shuffler Commercial Real Estate for assistance. We know the local market and can guide you to the right opportunities.
