Portfolio Strategy for Real Estate Companies: One Contract Type or Several?
Should a real estate company have a consolidated electricity contract or different contracts per facility? The answer depends on the portfolio's diversity – but there is a clear logic to follow.
One Portfolio – But Not Always One Contract
Real estate portfolios rarely consist of identical buildings. Offices, residential properties, logistics warehouses, and shopping centres have different load profiles – and therefore different optimal contracts. Forcing all under a single contract is administratively simple but often costs money.
Three Common Strategies
- Consolidated contract with one supplier. Easy to administer. Risk that all facilities pay the “average price” instead of an optimised price per type.
- Segmented by property type. Residential properties on variable, offices winter-secured, logistics on portfolio. More administration – but often 5–12% lower average cost.
- Portfolio contract with internal allocation. One supplier, one hedging strategy, but internal division per facility. Best for large portfolios (>10 GWh).
Checklist Before Renegotiating Your Portfolio
- Group facilities by load profile – not by geography
- Identify which facilities have a power/demand tariff and which have a hedging tariff
- Note which facilities have re-invoicing to tenants (affects the contract type)
- Calculate the volume per segment before requesting a quote
Would you like a personal review?
This guide provides free knowledge from Savera and is intended to give you concrete things to check on your own. We are an independent advisor in business electricity – if you would like us to specifically review your contracts, invoices, or consumption, you are welcome to book a free initial consultation.
Tip: Never send out an RFP without first having grouped the facilities. Quotes for the “entire portfolio” are always worse than quotes for defined segments.