Converting Older Commercial Buildings for a Net-Zero Future
4 min read
As the commercial real estate industry moves toward a more sustainable future, attention is shifting toward the vast inventory of older buildings that dominate many urban landscapes. While these structures may lack modern efficiencies, they offer a compelling opportunity: the chance to repurpose existing assets into high-performing, net-zero buildings.
In this article, you’ll explore the benefits, challenges, and strategies for converting aging commercial buildings into net-zero energy assets that align with 2025 and beyond sustainability goals.
Why Net-Zero Matters for Existing Buildings
Net-zero buildings are those that produce as much energy as they consume over the course of a year, typically through a combination of energy efficiency upgrades and renewable energy systems. With buildings responsible for nearly 40% of global carbon emissions, retrofitting older properties to meet net-zero standards is a critical piece of the climate solution.
In commercial real estate, achieving net-zero status can enhance a building’s market value, attract sustainability-minded tenants, and ensure compliance with increasingly stringent regulations. In Canada, cities such as Vancouver and Toronto are already implementing climate action plans that prioritize low-carbon retrofits across the commercial sector.
Key Challenges to Overcome
Retrofitting older buildings for net-zero performance can be complex. Structural limitations outdated mechanical systems, and historically preserved features often create obstacles to modernization. Additionally, achieving deep energy savings requires a significant investment, which is not something all property owners are prepared for upfront.
However, with the availability of federal and provincial incentives, along with the long-term return on investment (ROI) of energy cost savings and increased tenant appeal, these hurdles are becoming more manageable.
Strategies for Net-Zero Conversions
Successful net-zero conversions begin with a comprehensive energy audit to identify inefficiencies and opportunities. Key retrofit strategies often include:
Upgrading insulation and windows to improve the building envelope
Replacing HVAC systems with high-efficiency or electric alternatives like heat pumps
Installing on-site renewable energy systems, such as solar panels
Incorporating smart building technologies to monitor and optimize energy usage in real time
Transporting to all-electric systems, reducing dependency on fossil fuels.
Additionally, integrating passive design strategies, such as natural ventilation and daylighting, can reduce demand before active systems are even considered.
A Model for Sustainable Growth
Converting older commercial buildings into net-zero spaces not only preserves architectural heritage but also supports sustainable urban growth. As more companies adopt ESG (Environmental, Social, and Governance) mandates, net-zero-ready buildings will become increasingly competitive in the leasing market.
Moreover, this trend promotes a circular economy in real estate development, reducing the need for demolition and new materials by revitalizing existing structures.
The path to net-zero doesn’t require starting from scratch. With the proper planning and investment, older commercial buildings can be transformed into efficient, future-ready spaces that align with the evolving needs of tenants, regulators, and the environment. For CRE owners and developers, embracing this shift is both a responsible and strategic move toward long-term value creation.
References
Korytkowski, C. (2023, August 24). Building a net zero future. B+H Architects. https://bharchitects.com/en/2023/08/08/building-a-net-zero-future/
Sarfraz, A. M. (2023, May 11). The cost of turning older buildings into climate-fighting machines. Canada’s National Observer. https://www.nationalobserver.com/2023/05/11/news/cost-turning-older-buildings-climate-fighting-machines
Retrofits for the future. Canada Green Building Council (CAGBC). (2024, September 27). https://www.cagbc.org/why-green-building/retrofits-for-the-future/
About Royal LePage Commercial Westhaven Toronto
Our commercial real estate industry and segment expertise coupled with Royal LePage’s national platform and integrated systems provides best-in-class real estate strategies and a competitive advantage that can’t be beat.
We help businesses identify opportunities and maximize their return on investment with actionable goals, centralized support services and a strong commitment to customer success. Our national partnerships help us establish, guide and execute successful business investments.
We offer commercial real estate agents a professional environment, focused 100% on commercial real estate. Agents can expect unlimited market boundaries to build their business without the interference of a heavy corporate structure. In addition, agents will be able to access Royal LePage’s national referral network of over 18,000 agents to develop more business in their target markets with incoming leads generated daily. The brokerage provides agents a suite of services including marketing, promotional, networking and professional development needs.
Innovation and service excellence have developed and propelled the Royal LePage brand since 1913. When you join Royal LePage Commercial Toronto brokerage, you have the backing of one of the most powerful commercial real estate services company in Canada—Bridgemarq Real Estate Services Inc. (formally Brookfield Real Estate Services Inc.). Bridgemarq is a leading provider of services to real estate brokers and agents. They are an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses and is listed on the New York and Toronto stock exchanges.