Solve CRE’s Power Problem with On-Site Energy ⚡

Add Solar and Storage for Resilience

Author

Anne Morgan
October 23, 2025

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Hello, Commercial Real Estate Pros! 🏢

Commercial real estate faces a growing power bottleneck as electrification accelerates. Smarter storage, load management, and utility coordination are becoming essential.

Is your portfolio ready for the grid limits ahead?

📰 Upcoming in this issue

  • ⚡ Tackling CRE’s Power Problem With Smarter Electrification

  • 📊 What NAIOP’s Fall 2025 Sentiment Means for Local Owners

  • 🏭 New Jersey Industrial Campus Secures $654M Financing

⚡ Tackling CRE’s Power Problem With Smarter Electrification

Grid constraints are slowing the decarbonization of buildings, especially for heat pumps and EV charging. Owners are pivoting toward demand management, storage, and closer coordination with utilities.

Key Takeaways:

  • 🔌 Capacity Crunch: Aging grids and long interconnection queues are delaying electrification plans, requiring phased upgrades and creative load strategies.

  • 🔋 Storage as a Bridge: Batteries shave peaks, shift loads, and support resilience, lowering costly demand charges while utilities expand capacity.

  • 🧠 Smart Controls: Advanced meters, sensors, and AI optimize HVAC, lighting, and EV charging to balance comfort, emissions, and grid limits.

  • 🤝 Utility Partnerships: Early engagement secures incentives, supports curtailment pilots, and aligns timelines for transformers, feeders, and service upgrades.

📊 What NAIOP’s Fall 2025 Sentiment Means for Local Owners

The latest NAIOP index signals cautious optimism, with financing and tenant demand stabilizing. Owners still face cost pressures, making execution and flexibility essential.

Key Takeaways:

  • 📈 Sentiment Ticks Up: Expectations for occupancy and rents are improving modestly, suggesting a turning point in several local submarkets.

  • 💸 Financing Still Tight: Debt remains available for quality deals, but higher rates and stricter underwriting keep leverage constrained.

  • 🧱 Costs and Capex: Construction and operating expenses remain high, pushing owners to phase projects and prioritize ROI-positive upgrades.

  • 🧭 Playbook for 2026: Focus on tenant retention, targeted leasing, and selective acquisitions while preserving cash and maintaining conservative assumptions.

🏭 New Jersey Industrial Campus Secures $654M Financing

A central Garden State logistics campus has secured $654 million to refinance, upgrade, and lease space. The transaction highlights sustained investor demand near the ports.

Key Takeaways:

  • 💰 Capital Stack: A sizable senior facility, paired with reserves, supports refinancing, improvements, and a near-term lease-up.

  • 🚚 Location Edge: Proximity to Port Newark, Newark Liberty, and the Turnpike strengthens tenant demand and last-mile reach.

  • 📈 Market Signal: Lenders are backing prime industrial assets, showing selective confidence while maintaining disciplined underwriting.

  • 🧱 Use of Proceeds: Funds target building upgrades, sustainability features, and tenant-ready spaces that command premium rents.

📊 Take This Edition’s Poll:

Would you rather lead the grid adaptation conversation or wait for clearer regulatory direction?

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Why It Matters

Proactive electrification strategies protect asset value and strengthen operational resilience. Start by modeling energy demand and engaging utilities early.

Batteries, AI controls, and phased upgrades help keep projects viable amid infrastructure constraints.

Catch you in the next issue,

Anne Morgan
Editor-in-Chief
Commercial Real Estate Weekly

P.S. Interested in sponsoring a future issue? Just reply to this email and I’ll send packages!

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