How to Comply
Energy Performance Disclosure Requirement
Upon request, building owners are required to provide an energy disclosure report to any current or prospective tenant, buyer, or lender involved with a real estate transaction, a lease, or an application for financing or refinancing of the building. Disclosure creates an informed market with the ability to compare energy use (and future operating costs) between similar properties, and use this information to guide purchasing, leasing and financing decisions. More energy-efficient buildings cost less to operate, and have higher net operating incomes (NOI), greater asset values, and better tenant retention and acquisition. Read about some proven results in Seattle.
Providing a Disclosure Report
Owner can respond to an energy disclosure request by providing a Statement of Energy Performance (SEP) which is quickly created from Portfolio Manager (if a building is benchmarked). A SEP showing the building's energy performance ending in December of the prior year is sufficient. The City of Seattle will not provide energy disclosure reports to anyone other than the building owner or the Portfolio Manager Account holder.
Building owners are required to provide a SEP, upon request, to:
- A current tenant - within seven days of the request;
- A prospective tenant negotiating a lease agreement - within seven days of the request, and at or before the time the owner presents the lease agreement;
- A prospective buyer negotiating a purchase and sale agreement - within seven days of the request, and at or before the time the owner presents a sales contract;
- A prospective lender considering an application for financing or refinancing of the building - within seven days of the request, and at or before the time the owner presents a loan application.
- Lending institutions can request a disclosure report while processing any transaction involving the sale or lease of an entire building or of a separately owned portion of a building (e.g. a condominium unit). A disclosure report can also be requested in conjunction with financing of other activities, such as tenant improvements or a major renovation.
Failure to respond to an energy disclosure report request is subject to enforcement.
Asking for an Energy Disclosure Report
Buildings subject to energy disclosure: As of April 1, 2013 owners of commercial and multifamily buildings greater than 20,000 SF must disclose their building's energy performance on request to any of the parties listed above. The owner, at a minimum, should provide you with the Statement of Energy Performance (SEP) ending December of the prior year. The SEP should list the building's Site EUI and ENERGY STAR score (if available), which you can then use to better understand the building's energy performance:
Failure to disclose energy information is subject to enforcement. If a request for disclosure from a building owner has not been responded to, please contact:
Rebecca Baker - Program Manager