A correlation exists between the main economic indicators of a healthy commercial real estate market and municipal investment and application of smart grid technologies, according to a new study released by Jones Lang LaSalle.
The study, titled ‘A Connected City,’ determines that cities using smart grid technologies have an annual gross domestic product growth rate that is 0.7% higher than the national average, as well as an unemployment rate that is a full percentage point lower, and office occupancy rates that are 2.5% higher than less advanced cities.
A smart grid is a power delivery system that uses advanced information technology to improve the effectiveness and sustainability of energy production and distribution. The technology became more prevalent beginning in 2007, when then-President George W. Bush signed Title XIII of the Energy Independence and Security Act, which provided legislative support for the U.S. Department of Energy's role in national grid modernization efforts that included smart meter technology.
‘Cities that invest in smart grid technology and infrastructure, and that implement programs to enable energy-efficient corporate operations, are winning the competition for new businesses and job growth,’ says Dan Probst, chairman of energy and sustainability services at Jones Lang LaSalle. ‘This correlation speaks to the value of strong relationships between public sector infrastructure custodians and power suppliers, and the responsibilities of private businesses to be smart users of energy and to work together to drive productivity improvements at both the city and individual corporation level.’