In today’s multifamily market, maximizing asset performance requires more than just rent growth. Owners and operators increasingly look to sustainability as an important driver of asset performance. 

Energy efficiency, building electrification and indoor air quality, among other measures, not only have a positive impact on an owner’s bottom line but can also improve resident satisfaction. This leads to higher retention and leasing rates, said Kristin Gustafson, partner at Eide Bailly, a top 20 accounting firm based in Seattle. 

“Operating costs have risen significantly over the past several years, so we know that building owners are facing increased pressure across their portfolios,” Gustafson said. “As a result, owners, particularly in the Pacific Northwest, are looking for ways to improve the resiliency of their assets. We’re seeing them put greater emphasis on enhancing building efficiency and long-term performance.”

The sustainability and energy incentives practice at Eide Bailly, which Gustafson leads, consists of 20-plus engineers, accountants, energy modelers and tax professionals. The team helps clients navigate complex compliance requirements and maximize available energy tax incentives, having secured more than $1B in tax credits across 1,000-plus projects.  

Gustafson will speak at Bisnow’s Multifamily Annual Conference Pacific Northwest in Seattle on Nov. 10. Click here to register.

Bisnow spoke with Gustafson to learn about the Pacific Northwest’s multifamily landscape, Eide Bailly’s role in helping clients finance their sustainability goals through tax incentives, and what attendees should take away from this event.

Bisnow: How would you describe the Pacific Northwest’s multifamily market today?

Gustafson: We know that building owners are facing higher costs, increasing operating expenses and pressure to demonstrate strong asset performance and returns. On the sustainability side, regulations like Washington's Clean Building Performance Standard are influencing how owners think about not just their current asset management but future investments. Sustainability and building performance are becoming priorities rather than just environmental initiatives. 

Bisnow: Can you tell us more about your role at Eide Bailly?

Gustafson: I lead Eide Bailly's sustainability and energy incentives practice. My background is in engineering and building performance, and I spend the bulk of my time helping clients connect their sustainability goals with financial outcomes, including energy tax incentives. 

We work with building owners, developers and investors to identify opportunities to reduce operating costs, improve building performance and understand what incentives are out there. Our mission is to ensure that we're making the right investment decisions to create long-term returns for our clients.

Bisnow: What types of multifamily clients and projects are you working with most today?

Gustafson: We're working with a mix of multifamily developers, including REITs as well as affordable housing organizations. We help them evaluate potential energy-efficiency upgrades, particularly around electrification and decarbonization. A big part of our work involves evaluating these energy-efficiency upgrades while ensuring that we're meeting regulations. 

More owners are revisiting lease structures and exploring green lease provisions that support utility data sharing to assist with energy benchmarking and compliance efforts. We work with our clients to better align their energy goals, including how it impacts resident engagement. 

Bisnow: You will be speaking on the Maximizing Multifamily Asset Performance panel. What are owners and developers focused on to improve NOI while also supporting resident retention?

Gustafson: Building owners are focusing on upgrades which improve resident comfort, including indoor air quality, reliability and resilience. After several years of wildfire smoke and extreme weather events across the Pacific Northwest, residents are paying much closer attention to how building systems respond.

Building owners who are harnessing technology and building performance data to identify those opportunities and better manage their expenses are the ones that are seeing the benefits of higher NOIs and improved resident experience. We're also seeing greater interest in leveraging tax incentives, utility rebates and other funding programs to help offset upgrade costs and improve overall project returns, which makes these investments in resident experience more attractive.

Bisnow: What's the one thing you want attendees to take away from this event?

Gustafson: That sustainability measures are increasingly being used as business tools to help reduce operating expenses, manage risks and ensure compliance. All of these things can contribute to resident satisfaction. Sustainability can drive both financial performance and long-term asset value. 

Register for Bisnow’s Multifamily Annual Conference Pacific Northwest here.

This article was produced in collaboration between Eide Bailly and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.