How Much Electricity Does an Industrial Property Require?
Understanding your tenants' needs is essential to knowing what sort of amperage your facility should be able to support.
Electricity requirements for industrial real estate can vary significantly, especially given the function of the property. A large car manufacturing plant would likely have a greater need for more electricity than a smaller distribution center.
Different Phases
Most industrial properties — especially newer ones that have more intensive energy requirements — use a three-phase power system. This type of system is named for its three-wire alternating current power circuit, which is able to deliver larger loads of electricity compared to the single-phase systems found in most residential properties. Three-phase systems also delivers a far more consistent energy supply, not as prone to spikes in voltage as single-phase power.
Three-phase electrical systems are significantly more expensive to install than a standard single-phase setup, but once installed they offer greater efficiency and lower costs relative to the amount of energy used.
Amperage
Although three-phase electricity is relatively standard for industrial assets, where they differ is often in terms of how many amps of electricity the property can accommodate. This can range anywhere from 200 to 2,000 amps or more. It is important to understand what a potential tenant may need in terms of electrical supply. A large manufacturer or a product distributor with complex sorting systems will generally require significantly more electricity than light assembly or a low-volume storage facility.
Related Questions
What is the average electricity usage for an industrial property?
I don't know.
What factors influence the electricity needs of an industrial property?
The electricity needs of an industrial property are influenced by the structure's column spacing, clear heights, electrical supply, and floor thickness. Additionally, elements on the property's exterior, such as the loading area, parking, and truck courts, can also affect the electricity needs of an industrial property. Technological and energy-efficiency improvements, such as solar panels, can also be an effective way to boost the asset's value.
What are the typical electrical requirements for an industrial property?
The electrical requirements for an industrial property depend on the type of industrial property. For example, warehouses and distribution centers typically require three-phase electric power systems, while light manufacturing buildings may require less power. Data/communications centers usually require specialized floor slabs and HVAC systems to keep electronic equipment in good condition. For more information, please see CMBS Loans for Industrial Properties.
How can I reduce the electricity usage of an industrial property?
You can reduce the electricity usage of an industrial property by implementing smart building technology. Smart technology can ensure heating or air conditioning systems are utilized only when necessary, lowering everyone’s energy costs. Other proptech can reduce your property management costs, if a tenant can tap a few buttons to submit a maintenance request. Besides what most people think of as “smart” technology, even something as seemingly minor as replacing interior and exterior lighting with LED bulbs can have a huge impact on lowering your property’s energy costs.
You can also consider technological and energy-efficiency improvements, like solar panels atop a structure’s roof, which could be an effective way to boost your asset’s value.
What are the most energy-efficient industrial properties?
The most energy-efficient industrial properties are those that have been built or retrofitted with energy-efficient features such as LED lighting, high-efficiency HVAC systems, and insulation. Additionally, industrial properties that have been designed with natural lighting, solar panels, and other renewable energy sources can help reduce energy costs. For more information on energy-efficient industrial properties, you can visit the U.S. Department of Energy's website.
What are the best practices for managing electricity usage in an industrial property?
The best practices for managing electricity usage in an industrial property include investing in smart building technology, replacing interior and exterior lighting with LED bulbs, and understanding the electrical supply of the building. Smart technology can ensure heating or air conditioning systems are utilized only when necessary, lowering everyone’s energy costs. LED bulbs can have a huge impact on lowering your property’s energy costs, and understanding the electrical supply of the building is important for determining whether or not an industrial facility is a good investment.
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