As a commercial property owner, you know that real estate is more than just a building—it’s a business asset. That’s why rooftop leases, particularly for solar panels, are such a valuable part of your income stream. But what happens to that lease if you decide to move or sell your property? Are you at risk of a penalty? Let’s break down the specifics.
What is a Rooftop Lease?
In commercial real estate, a rooftop lease allows a third party, like a solar or integrated energy service provider, to install and maintain equipment on the roof of your building. These leases are typically long-term (20-25 years), providing a consistent revenue stream. With Catalyst Power, this comes in the form of a monthly lease payment. If you're selling or relocating your business, you might wonder if the existing lease agreement helps or hinders your move.
Does the Lease Stay or Go?
The good news is that the lease stays with the property. When you sell or transfer ownership of a commercial building as part of your lease agreement with Catalyst Power, the rooftop lease is typically part of the transaction. The new property owner steps into your shoes, inheriting your existing lease and the steady income that comes with it. So, when you move on, that reliable cash flow doesn’t just disappear, it continues.
How Does This Benefit the New Property Owner?
For the new owner, inheriting an existing rooftop lease is a significant selling point. The value of a long-term, high-credit tenant provides financial stability and predictable income, which makes your property more attractive. In fact, a building with a long-term rooftop lease can increase the property’s market value.
Why? Buyers see a rooftop lease as a guaranteed revenue stream that offsets their operating costs. This reduces the financial risk of owning the property, making it a more appealing investment. Essentially, you're offering them an asset that immediately generates revenue, which could even help boost your property’s sale price.
Why Partnering with Catalyst Power is a Smart Move
Catalyst Power is a partner you can count on if you're considering signing a rooftop lease. As a leader in retail and renewable energy, Catalyst Power specializes in high-quality, long-term contracts that benefit commercial property owners. Here's why partnering with them can be a win for your property:
- Steady, Long-Term Income: Catalyst Power offers a reliable cash flow for the term of the lease, generating new income for your unused rooftop space for 20-25 years. If you want to learn more, we dive into the difference between our power purchase and leasing agreements here.
- No Upfront Costs: Catalyst handles all equipment installation, maintenance, and operational costs—no investment is required from you.
- Environmental Appeal: With sustainability becoming a priority for many investors, having a rooftop lease with an integrated energy provider like Catalyst Power can give your property an edge in the market. (A covered rooftop also lowers cooling costs in the summer – you can have that one for free. 😉)
Ready to see how a rooftop lease with Catalyst Power can increase the value of your property? Get in touch with our Energy Experts today to explore how we can help boost your property's financial profile and set you up for long-term success.
