Energy Contracts for Multi-Tenant Commercial Spaces: What You Need to Know

Multi-tenant commercial buildings present unique challenges and opportunities when it comes to managing electricity costs. In single-tenant buildings, energy use and contracts are straightforward. But in multi-tenant spaces, property managers must balance diverse businesses with different usage patterns, infrastructure, and billing needs. Understanding how commercial energy contracts work in these environments can help building owners and property managers optimize energy costs while promoting efficiency.

The Challenge of Shared Energy Use

One of the biggest hurdles in multi-tenant buildings is accurately tracking and billing electricity consumption. With a single-tenant building, it’s easy to identify where the entire building’s consumption comes from. However, in a multi-tenant space, each tenant has different operating hours, equipment, and energy needs, which makes a “one-size-fits-all” billing approach both inaccurate and imbalanced. Many buildings use submetering systems (separate meters for each unit) to measure electricity usage at each tenant’s space. This enables precise billing based on actual consumption, improving fairness and reducing disputes between tenants.

Due to this complexity, commercial energy contracts in multi-tenant buildings often require customization that reflects the building’s intricate setup. Contracts may be structured to cover:

• Individual tenant meters - Each tenant manages their own energy contract and rates. Common in shopping malls, office parks, or flex-space industrial parks.
• Centralized building meters - Landlords or property managers sign one contract and allocates costs based on usage or leases. These are more common in small offices or older buildings.
• Hybrid models – A mix of both, often supported by energy management technology. Ideal for large spaces like corporate campuses or medical facilities.

Selecting the right contract type for your business depends on the building’s infrastructure, tenant lease arrangements, and billing capabilities.

Benefits of Customized Retail Electricity Plans

Custom-priced retail electricity plans designed for multi-tenant commercial spaces can bring significant benefits. Your business could have:

• Transparent and accurate billing aligned with each tenant’s actual usage.
• Simplified contract management for property owners who can bundle energy services.
• Opportunities to improve energy efficiency and better manage costs.
  
  

Better Support for Multi-Tenant Buildings

Catalyst Power^® offers flexible contract options and pricing designed to meet the specific energy needs of your space. Reach out to our Energy Experts today to explore how our tailored retail electricity services can power your multi-tenant commercial space more efficiently.