A New Angle on Multifamily Amenities: Sustainability. Q&A with PearlX’s Simon Herrmann

Features September 26, 2025| | Amy Wolff Sorter

Multifamily developers, owners, and operators are waging amenity wars to attract tenants and boost net operating income. This has meant significant capital investments in rooftop lounges, business centers, self-service bike maintenance shops and dog runs.

While such features seem to attract more tenants in theory, PearlX Senior Vice President Simon Herrmann said they are underused in reality. However, sustainable energy amenities seem to provide value to both tenants and buildings. Hermann recently answered questions about this amenity type.

Q: What are sustainable energy amenities?

A: A sustainable energy amenity is one that’s either powered by a clean energy solution or helps lower overall energy usage. It might be unusual to think of something like clean energy as an amenity, but sustainable energy solutions can improve resident experience and provide renters with meaningful value.

Q: What are some examples of sustainable energy amenities?

A: One common sustainable energy solution is a solar power infrastructure. This is accomplished by installing solar panels on rooftops or carports. The result is a cheaper and more sustainable alternative to a traditional power source. Another such feature involves EV charting stations, which encourage the use of electric vehicles.

Smart building technologies such as smart locks, lights and thermostats are also sustainable energy amenities. Along those lines, many multifamily owner-operators are updating old, energy-hungry heating and cooling systems with more efficient offerings that can be paired with smart building technology. This helps better distribute optimal temperatures throughout the building.

Additionally, owner-operators are increasing investments in batteries and generators. These clean-energy storage solutions support peak demand management programs that use stored energy during heavy usage, which can optimize utility costs. The batteries are also useful as back-up power during a power outage to maintain building operations and mitigate losses if systems shut down.

Q: What are some benefits of these amenities?

A: Sustainable amenities can have a tremendous impact on leasing velocity, especially in markets with a supply-demand equilibrium. A survey from MRI Real Estate Software found that two-thirds of renters think environmental and sustainable features are essential when deciding where to live.

Residents are also willing to pay more for sustainable amenities. In general, Gen Z and Millennial tenants are willing to pay a 10% or higher green premium for sustainability. This is a substantial upside for multifamily owners in a time when they are fiercely competing for tenants. On the ownership side, sustainable amenities stave off property obsolescence by upgrading systems to the most cutting-edge and tech-enhanced infrastructure. This helps owner-operators meet new state and local green building regulations.

Q: How costly is implementation and maintenance?

A: Sustainable amenities aren’t inexpensive, especially on the front end. However, with the right partnership, multifamily owners and developers won’t have to dip into their pockets to pay for upgrades. Companies like PearlX install solar infrastructure on properties, covering the cost of installation and handling maintenance and upkeep. The PearlX model also pays owner-operators rent for the space on which the solar panels sit.

Through such an agreement, owners can provide this sustainable amenity to residents without incurring significant upfront or maintenance costs while taking advantage of a new revenue stream.

Q: What else can you say about sustainable amenities?

A: Most multifamily owners are trying to balance client service with increased revenue and value. Sometimes these factors are at odds with one another. But when it comes to sustainable energy solutions, owners, operators, developers, and tenants can really have it all.