Rising materials, labor and operational costs have put increased pressure on commercial real estate owners who are searching for ways to reduce their bottom line.

Owners can reduce costs in several ways, from implementing more energy-efficient materials and systems to converting their property to a different, more lucrative asset class. While many owners are taking advantage of these measures, even more are missing out on one less labor-intensive way they could recoup expenses: applying for grants.

“We see a real lack of awareness from building owners when it comes to grants,” said Brianne Widmoyer, business development engineer at Boland. “If you don't have somebody on your staff specifically looking out for grants, it's very easy to miss them, but they can be extremely beneficial to project profitability.”

Widmoyer said that there are two major types of grants: government, which come from federal, state or even county sources, and private grants that typically come from generous foundations. While there are many different types of grants, some of the most common that apply to commercial real estate owners concern energy-efficiency, electrification, capital projects and special interests, which would apply to projects that cater to special interest groups, such as affordable housing, life sciences, tourism and converting offices to low-income housing.

These grants can go a long way toward funding building improvements, but they can involve a lengthy application process with strict timelines. Applications can fail based on the smallest technicalities, even formatting issues and misspellings.

To help CRE owners avoid these pitfalls, Boland has grant writers on staff who can assist clients in applying for and earning grants. The company offers full-service grant writing, meaning they can write the application from start to finish or simply assist the owner’s internal grant staff.

Widmoyer said that while the national success rate for all grant applications is around 10%, Boland has a demonstrated success rate of 60%.

“We heard from a number of clients that they did not have the staff they needed to apply for grants, or the grants were too technical, particularly those that are HVAC- or energy-specific,” she said. “A performing arts building looking for grants to replace their HVAC system will probably have people on staff who are knowledgeable in all things performing arts, but not necessarily the inner workings of HVAC and energy impacts.”

This is the perfect time to bring a building solutions provider like Boland in to help guide clients through the application process. Grant writing is a team sport, Widmoyer said, and the more eyes on an application, the more successful it is likely to be. Boland is also careful not to waste a client’s time, she said, avoiding grants with very low success rates and instead focusing on ones the client is most likely to win.

One Boland client, a K-12 school in Maryland, was looking to upgrade its HVAC controls and lighting systems. With Boland’s help, the school ended up getting $329K between grants and incentives, which covered 57% of the project.

“They only paid 43% of the project out of pocket, which left them with $329K that they could put to other projects,” Widmoyer said. “The final project saved them 57% of their annual energy use, which amounted to $40K. Their utility bills got cut by more than half, and the return on investment of the project was 15%.”

She added that the project helped the school comply with the Maryland Building Energy Performance Standards, which will be implemented in the next few years. It also improved equipment reliability and indoor air quality, keeping students comfortable and helping them stay productive.

“It really was a win across the board,” Widmoyer said.

This article was produced in collaboration between Boland 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.