What a 119-Year-Old Montréal Landmark Can Teach Us About the Value of Energy Performance

Some buildings are designed to last.

Others become part of a city's identity.

Le Linton, at 1509 Sherbrooke Street West in Montréal's Golden Square Mile, is both.

Built in 1907, the 10-storey Beaux-Arts apartment building is one of Montréal's distinctive historic residential properties. Its ornate terra-cotta façades and architectural detailing reflect the character of an era when the Golden Square Mile was reshaping Montréal's urban landscape.

Today, Le Linton carries another distinction:

ENERGY STAR Certified Building.

That combination makes Le Linton an interesting case study in a question that building owners increasingly need to consider:

Can improving a building's energy performance also strengthen the long-term value of the asset?

At Zenith Net-Zero, we approach energy performance as both a sustainability objective and an asset-management consideration.

Beyond the Utility Bill

When evaluating an energy-efficiency project, the first question is often:

How much will we save?

Of course, operating-cost savings matter. But for a building owner or condominium association considering a significant capital investment, they are only part of the picture.

A more complete question is:

What does this investment do for the building as an asset?

Our approach starts with a simple roadmap:

Measure → Prioritize → Invest → Fund → Improve Performance → Certify → Strengthen Asset Position

The first step is measurement.

Before deciding where to invest, a building needs a reliable baseline of its energy consumption and associated greenhouse gas emissions. Benchmarking provides the data needed to understand current performance, identify opportunities and measure improvement over time.

From there, owners can evaluate potential capital expenditures and determine which investments make the most sense for the property.

The Challenge of Improving Older Buildings

For a heritage property, the decision-making process can be even more complex.

A building such as Le Linton cannot simply be approached as if it were a new construction project. Its architecture, materials, building envelope, mechanical systems and heritage characteristics all form part of the asset.

That means improving performance requires a balance between preservation and progress.

Le Linton has already undergone significant restoration work, including a comprehensive assessment of its building envelope, restoration of its terra-cotta components and improvements to foundation waterproofing and drainage.

The lesson is important: maintaining the character of an older building and improving its technical performance do not necessarily have to be competing objectives.

The same principle applies to energy.

The question is not:

How do we make an historic building behave like a new building?

It is:

How do we improve the performance of an existing asset while protecting the characteristics that make it valuable?

From Capital Expenditure to Asset Strategy

For condominium associations and building owners, major capital expenditures can be difficult to justify if the analysis focuses only on short-term payback.

An energy project may reduce operating costs, but the financial benefits can extend well beyond the monthly utility bill.

A broader assessment considers whether an investment can:

• reduce long-term operating costs;

• improve the building's energy performance;

• reduce greenhouse gas emissions;

• help manage future regulatory and energy-cost risks;

• improve the property's marketability;

• support rental and occupancy objectives; and

• strengthen the property's long-term competitiveness.

Funding can also change the equation.

Depending on the project and jurisdiction, incentives and grant programs may help offset the capital required for energy-efficiency improvements. Identifying these opportunities before committing to a project can be an important part of the investment strategy.

Making Performance Visible

Once a building's performance has been measured and improved, the next question is how to demonstrate that progress.

This is where ENERGY STAR certification can play an important role.

ENERGY STAR Portfolio Manager provides a standardized way to benchmark a building's energy performance against comparable properties. For eligible buildings in Canada, a score of 75 or higher indicates performance in the top quartile of the applicable peer population and makes the property eligible to apply for ENERGY STAR certification, subject to program requirements.

Certification provides something more than an internal energy report.

It provides a recognizable way to communicate that a building's performance has been measured against a standardized benchmark and independently verified as part of the certification process.

For owners, property managers and other stakeholders, that can make energy performance easier to understand and communicate.

Does Energy Performance Affect Asset Value?

There is growing evidence that energy performance can have financial implications beyond operating costs.

Research cited by ENERGY STAR has found relationships between energy-efficient buildings and higher rents, occupancy rates and selling prices. One study cited by ENERGY STAR found ENERGY STAR-certified buildings sold for 12.9% more than comparable buildings.

Other research has found that reductions in energy costs can be associated with increases in commercial property value.

These numbers need to be interpreted carefully. Much of this research comes from the U.S. market, and it would be inappropriate to suggest that a Montréal building will automatically achieve a specific valuation premium simply because it improves its energy performance or obtains ENERGY STAR certification.

But the broader direction is significant.

Energy performance can be an economic characteristic of a building, not simply an environmental one.

As building owners, investors and occupants place increasing importance on operating costs, environmental performance and future risk, the ability to demonstrate strong building performance can become part of an asset's overall market position.

Le Linton: A Different Kind of Sustainability Story

This is what makes Le Linton particularly interesting.

Its value is not based on being new.

Its value is partly rooted in its history, architecture, location and character.

Yet a building that has been part of Montréal for more than a century also has to remain relevant to the people who own, manage and occupy it today.

That means sustainability is not necessarily about replacing the old with the new.

Sometimes, it is about investing intelligently in what already exists.

For a historic property, improving energy performance can be part of a much broader strategy: preserving the character of the asset while improving how it operates, reducing its environmental impact and positioning it for the future.

A Different Way to Think About Energy Investments

At Zenith Net-Zero, this is how we believe building owners should approach energy performance.

Not simply as a question of:

“How much energy are we using?”

But as a broader business question:

“What does our building's performance tell us about the asset, and what can we do with that information?”

The process begins with reliable data.

Then comes prioritization, investment, funding and measurable improvement.

ENERGY STAR certification can provide an additional way to document and communicate performance.

And ultimately, the objective is to create a building that is less expensive to operate, better prepared for the future and better positioned as an asset.

Le Linton offers a compelling example of that philosophy.

A building that has stood for nearly 120 years has already demonstrated remarkable longevity.

Improving its performance adds another dimension to that story.

Preserve the character. Improve the performance. Protect the asset.

That is what sustainable building management can look like.

Considering Your Building's Next Energy Investment?

Every property is different. Zenith Net-Zero can help you understand your building's energy performance, identify opportunities and determine what makes sense for your asset.

Contact us to discuss your building and explore the next steps.

DISCUSS YOUR BUILDING'S PERFORMANCE