Wolf Commercial Real Estate (WCRE | CORFAC International) is proud to announce that Andrew Koller, Research Analyst and Advisor, was recently featured in The Wall Street Journal article, “Surging Power Costs Are Putting the Squeeze on Customers.” His expert insight shed light on the economic pressures created by soaring energy costs and what they mean for the commercial real estate industry.
Energy Demand Is Reshaping the Market
Across the nation, electricity demand is reaching record highs. Data centers, advanced manufacturing, and electrification initiatives are fueling massive increases in power usage. As utilities struggle to meet these demands, energy costs are surging, impacting operating expenses for businesses, property owners, and tenants alike.
In the article, Koller explained, “The pressure on peak electricity demand capacity will likely persist, potentially meaning unyielding pressure on customer utility bills.” His statement highlights a growing reality: elevated energy costs aren’t a short-term issue. They represent a structural shift that will continue to influence commercial operations and property performance for years to come.
Connecting Energy Costs to Commercial Real Estate
At WCRE, Koller’s analysis directly aligns with insights from our Q3 Market Report, which reveals how operating expenses are driving decision-making across all asset classes. Higher utility costs are prompting tenants to reevaluate space needs and pushing landlords to prioritize energy efficiency. Buildings with modern mechanical systems, upgraded HVAC, and sustainable infrastructure are proving more resilient in competitive leasing markets.
For property owners, this trend also affects valuation. Energy-efficient buildings not only reduce long-term operating expenses but also attract stronger, creditworthy tenants who value sustainability and lower occupancy costs. These advantages strengthen an asset’s market position and improve overall investment performance.
WCRE’s Data-Driven Approach
Through WCRE’s comprehensive research and property management platform, our team continues to monitor these cost trends across the New Jersey and Philadelphia markets. We help landlords assess building performance, implement capital improvements, and communicate cost advantages to prospective tenants. By doing so, WCRE bridges research and real-world strategy, empowering clients to stay ahead of shifting economic and energy dynamics.
Furthermore, Koller’s recognition in The Wall Street Journal reflects WCRE’s growing reputation as a trusted industry voice. His research-driven commentary supports the firm’s broader mission: delivering actionable market intelligence and forward-thinking solutions that help clients adapt, innovate, and thrive.
Looking Ahead
As energy costs continue to climb, commercial real estate owners and investors will need to think strategically about operational efficiency. Transitioning to sustainable building practices and modern infrastructure isn’t just good stewardship – it’s smart business.
At WCRE, our team remains committed to guiding clients through these evolving challenges. Backed by real-time data, expert research, and on-the-ground market knowledge, WCRE helps clients make informed decisions that enhance property performance and value.
