Lighting and Your Bottom Line

New or Upgraded Lighting Systems = Money Well Spent

Tenant turnover is always the norm. In order to attract and retain tenants, new and rehabbed office spaces will benefit from lighting systems that can adapt to different tenants’ needs, activities and business goals. Smart business owners view their office spaces as a competitive tool for recruiting and retaining good talent and attracting new clients. It’s critical therefore, that building owners understand how their choice of lighting contributes to their tenant’s success as well as their own overhead, energy and disposal/recycling costs.

Property owners are often daunted by initial cost concerns when designing and specifying office lighting systems. However, compared to the cost of lighting equipment, installation, and the electricity to run it, employee costs can be from six to ten times greater. And, since lighting enhances employee productivity, their overall contribution to the company's bottom line will offset the cost of the new lighting systems on a comparative cost basis.

In summary, when improved lighting falls victim to budget cuts, it may actually raise your operating costs through diminished productivity in the work space.

Total Cost of Lighting Ownership
The Total Cost of Lighting Ownership (TCOO) of your office lighting system is derived from:

Material Costs
The initial purchase price of the lighting system and components. (Remember that material costs are small compared to the cost of energy to operate the system)
When choosing lamps, consider factors such as: life, color consistency, lumen maintenance, ballast/system efficiency, lighting control options. (occupancy sensors, dimming, daylight sensing, load shedding, etc.)

Energy Costs
The total per annum hours the system operates, multiplied by the local kWh electric rate.
When choosing lamps and ballasts, consider efficiency (lumens per watt), life and lighting control options. Inquire about energy incentives from the local utility and government agencies.

The ongoing cost of maintaining the system: labor, re-lamping, etc.
Consider longer life products (e.g. extended life T5 and T8 fluorescent, ceramic metal halide, LEDs) with superior color stability and lumen maintenance to reduce labor/replacement costs and extend maintenance intervals.

The cost of removal and disposal of lamps, ballasts luminaires and components at end-of-life in an environmentally responsible manner.