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Washington Real Estate Investment Trust Monetizes Flexibility

Industry: Commercial Real Estate
Location: Properties in MD, VA, DC
Solutions: Energy Supply Management, Demand Response


Washington Real Estate Investment Trust (Washington REIT) is the oldest publicly traded real estate investment trust (REIT) in the United States. The Washington REIT portfolio consists of more than 50 office, retail, and multifamily properties, totaling more than 7 million square feet.


Like most leading commercial real estate firms, Washington REIT seeks every opportunity to improve the financial performance of its properties. By partnering with Enel X, Washington REIT has developed a comprehensive energy program that transforms energy from a cost center into a strategic tool to streamline and enhance its buildings’ financials and sustainability.


Managing Energy Prices and Risk through Strategic Energy Supply Management

Washington REIT first partnered with Enel X in 2008 to support its energy supply management efforts. Working closely with Washington REIT’s Real Estate Services division, Enel X energy advisors developed and executed a strategy to minimize costs by purchasing energy through strategically-timed block purchases supplemented with spot market purchases.Over time the Enel X team has modified Washington REIT’s energy supply management strategy to match evolving organizational preferences. The result has been a systematic approach to energy supply management that ensures budgets stayed on track while also dynamically adapting to the company’s tolerance for market risk and price variability. Additionally, the Enel X team delivered accurate energy budgets on a building-by-building basis to Washington REIT property managers, who now incorporate these budgets into financial planning and track against them using quarterly variance reports.


Generating Revenue through Demand Response

Starting in 2009, Washington REIT’s Real Estate Services team has also enrolled properties in demand response, and today the company has 21 participating buildings. By selectively curtailing building electric demand for a few hours each summer, the company generates revenue and contributes to grid reliability. The company continues to pursue additional revenue opportunities by increasing curtailment nominations and enrolling additional properties.


The Results

  • $400,000 in demand response revenue generated since 2011
  • 60,000 MWh electricity supply contract executed near 10-year low for electricity rates