Efficiency Formula: How “Baltisches Haus” Invests in Long-Term Real Estate Value

In a time of energy market volatility, tightening regulations, and the tangible impact of climate change on everyday decision-making, real estate asset managers bear responsibility not only for square meters, but also for how sustainably and efficiently those spaces function over the long term. One of the largest commercial real estate managers in Lithuania, Baltisches Haus, approaches these changes through the lens of strategic planning — with decisions based on calculations, portfolio assessments, and long-term returns for both the company and its clients.

Today, the rooftops of properties managed by the company host nearly 3.5 MW of installed solar power — supplying 21 buildings, soon to be 22. This installed capacity helps cover approximately 7–9% of the company’s total electricity consumption, and in some buildings, solar panels can fully meet electricity needs during peak periods. Given that Baltisches Haus is among the largest electricity consumers in the commercial real estate segment, these figures are significant.

For the company, this represents a practical step toward reducing dependence on fluctuating energy prices and increasing the energy self-sufficiency of its buildings — a measure that not only improves cost control but is increasingly valued by tenants, especially those pursuing ESG goals.

Not Just One Initiative, But a Consistent Direction

Investments in solar energy are a key part of Baltisches Haus’ sustainability strategy, which centers on energy efficiency. “For us, efficiency and sustainability aren’t isolated initiatives — they’re a strategic direction we adopted years ago and have consistently followed,” says Viktoras Lukaševičius, Head of Operations at Baltisches Haus.

For six years now, the company has been phasing out gas heating systems in its properties, replacing them with heat pumps. Each year, Baltisches Haus allocates about EUR 500,000 to upgrade building systems, guided by internal standards that define maximum system age and required efficiency parameters.

When CO₂ Reduction Becomes a Business Argument

These changes have enabled the company to surpass its strategic targets. While the goal was to reduce primary energy consumption by 10% by 2026, that milestone was already exceeded in 2023. According to 2024 data, primary energy use dropped by 11.2%, electricity use by 9.2%, and CO₂ emissions by 13.5%. These results reflect not just individual actions, but a systemic approach that delivers results.

By integrating renewable energy sources and upgrading systems, the company aims not only to reduce the carbon footprint of its properties, but also to build an energy-efficient infrastructure that can help ensure more stable electricity pricing for tenants. These decisions boost competitiveness and make properties more attractive to current and prospective tenants alike.

This approach is growing in relevance as the business environment evolves. More clients now request proof of green electricity use, driven both by external regulation and internal ESG metrics — which are becoming integral to corporate culture.

“Tenants who today prioritize efficiency for financial reasons may soon be required by their own stakeholders to use renewable electricity and operate in energy-efficient premises. In our experience, investing in efficiency ultimately pays off,” says Lukaševičius.

Scandinavian Thinking in Lithuanian Real Estate Strategy

When it comes to new developments, Baltisches Haus is shifting its perspective on sustainability certification — moving from BREEAM In-Use to BREEAM International New Construction, which evaluates the full life cycle of a building. According to Lukaševičius, this approach better aligns with the long-term strategy of real estate managers and actual business needs.

“Certification systems are constantly evolving, and maintaining an ‘In-Use’ rating demands frequent updates — which would disrupt our tenants’ operations. That’s why we chose a different path: to evaluate the entire life cycle of the building upfront, as is standard in Scandinavian countries, which are somewhat ahead of Western Europe in this area,” Lukaševičius explains.

EV Charging as a Retail Driver

The company’s sustainability efforts also extend to sustainable mobility. In partnership with Ignitis, Baltisches Haus is installing EV charging stations across Lithuania — both in major cities and smaller towns.

Currently, 38 charging stations have been installed at 16 company-managed properties, completing about 60% of the overall project. Over the next year, another 26 stations are planned at 11 additional sites. Typically, 2–4 fast or medium-speed chargers are installed per property.

This infrastructure is becoming more than just a convenience — it’s a real factor in attracting visitors. Surveys show that some customers choose shopping locations where they can charge their electric vehicle during their visit. This reflects changing consumer habits and strengthens the competitiveness of the properties. As a result, more Baltisches Haus properties now welcome EV drivers with charging options.

Today’s Decisions for Tomorrow’s Standards

One of the biggest upcoming challenges for Baltisches Haus is the renovation of aging buildings — a priority that will become even more pressing with the implementation of the EU Taxonomy. While it’s not yet mandatory, it’s increasingly clear that requirements will be enforced through financing conditions. If a real estate portfolio does not fall within the top 15–30% of its segment in terms of efficiency, loans could become more expensive.

“We have a fairly large portfolio of older buildings — about 150,000 square meters. We’re investing in technical systems and energy efficiency, but a time will come when systems have been optimized as much as possible and we’ll need to invest in the buildings themselves. With this in mind, we’ve already assessed our portfolio against EU Taxonomy criteria to understand how we rank in the market and what needs to be done before regulations come into force,” says Lukaševičius. Baltisches Haus plans to ensure all of its managed properties comply with those future standards.

According to the Head of Operations, requirements may still change several times before implementation, but Baltisches Haus‘ strategic direction will remain steady — toward greater energy efficiency, resilience to regulatory change, and expanded renewable energy generation. It’s a vision that creates value not only for today, but well into the future.