Many commercial real estate owners have recently begun adding a popular option to their capital stack: commercial property assessed clean energy financing, or C-PACE.
With C-PACE, owners can finance energy improvement initiatives for their buildings, including upgrades to HVAC systems, windows and roofing. The cost appears as an assessment on the property tax bill and can be repaid over time for up to three decades. Should the owner sell the building, the repayment obligation would remain tied to the property rather than the owner.