Kingspan Kooltherm insulation offers increased rentable or sellable space.
The usable space within a building is a fundamental metric in understanding the valuation, thus the investment potential, of real estate. Properties with greater internal floor area command a higher rental return in addition to higher overall financial values and could, therefore, give rise to a greater Return on Investment (ROI).
With an R-value of 16 on two inches, Kingspan Kooltherm premium performance insulation has a higher R-value than any commonly used insulation. The width of external walls incorporating Kooltherm insulation is thinner than comparative solutions – facilitating internal space gains without increasing the overall designed footprint of a building.
Kingspan commissioned Currie Brown to investigate the “Real Value of Space in Commercial Real Estate”. They developed a research program to analyze a database of over 70,416 commercial buildings generated from a model that considered a range of physical and financial building characteristics, and analyzed several case study buildings to compare to the calculation method used for the database buildings.
The findings show that the cost of specifying Kooltherm wall insulation, in lieu of the comparative solutions, can provide an overwhelming ROI. Using several wall construction types, 91.5% of the database buildings analyzed showed a positive ROI.
For example, a retail park in Boston with a rentable area of 59,201 square feet with a specified R-value of 19. This would require 5 inches of mineral wool insulation as opposed to 2.36 inches of Kooltherm. In this case, Kooltherm would save 2.64 inches on the wall thickness. The thinner wall configuration would add approximately 267.1 square feet of additional rentable space. At a market rate of $55.73 per square foot, using Kooltherm insulation in this building would result in an additional $14,883 rent income per year!
On the whole, the capitalized market “value” of the additional space, resulting from the specification of Kingspan Kooltherm, is far greater than the CapEx cost of the additional space.
As codes and regulations continue to target energy consumption and CO2 emissions, buildings are being subjected to increasingly higher energy performance standards. New codes may include requirements for the building envelope that can lead to an increase in the wall insulation thickness required to achieve the specified thermal performance, and therefore a corresponding decrease in marketable internal floor area.
Poorer performing insulation materials (with higher thermal conductivity or lower R-values), can create a further burden on ever–diminishing indoor space, particularly in buildings limited by a fixed footprint. Over time, this can erode the financial value, thus investment potential, of a building.
Premium performing insulation materials (with lower thermal conductivity or higher R-values), can provide solutions since a lower thermal conductivity can result in thinner insulation.
A lower thermal conductivity can result in thinner insulation. A thinner insulation can result in thinner external wall construction. A thinner external wall construction can result in greater internal floor area. A greater internal floor area can result in a greater Return on Investment (ROI).