Apartment buildings remain a hot commodity for investors across the country. From Los Angeles to Baltimore, acquisitions are on the rise, and one of the first priorities for many new owners is improving building efficiency and profitability.
One often overlooked but impactful upgrade is lighting. At Lightility, we know firsthand how lighting retrofits can help apartment building owners improve tenant experience, control energy costs, and increase property value.
Let’s explore why lighting upgrades are a smart move for apartment building investors.
The Growing State of Apartment Building Acquisitions
Apartment building acquisitions are booming nationwide. According to CBRE, U.S. multifamily investment volume rose 19% in 2024 to $142.6 billion, with Q4 alone seeing a 59% year-over-year increase, signaling strong investor demand.
Apartment buildings appeal to investors due to steady rental demand, rising property values, and opportunities to reposition aging assets. Whether purchasing small 4-unit properties or large complexes with hundreds of units, investors are focused on improving NOI (Net Operating Income) to maximize returns.
As a result, value-add strategies—like lighting upgrades—are gaining traction as a quick and effective way to increase operational efficiency.
Why Lighting Upgrades Matter for Apartment Buildings
For apartment building owners and managers, lighting upgrades deliver significant advantages. Improved tenant satisfaction, lower utility costs, and added property value all make lighting retrofits an attractive investment.
Improving Tenant Satisfaction
Apartment residents appreciate well-lit common areas, hallways, parking lots, and entryways. Poor lighting can make spaces feel unsafe or unwelcoming.
Upgrading to modern, energy-efficient lighting can:
- Improve perceived safety in common areas
- Boost tenant retention by creating a more comfortable living environment
- Generate positive reviews and word-of-mouth referrals
At Lightility, we’ve helped multifamily owners nationwide retrofit outdated lighting to create brighter, safer environments that residents notice immediately.
Cutting Energy Costs
Lighting represents a significant portion of an apartment building’s electricity consumption. By retrofitting outdated fixtures with LED lighting, property owners can reduce energy usage by up to 75% compared to older technologies.
In addition, smart controls such as motion sensors and daylight harvesting further optimize energy use by reducing waste. This is especially valuable for apartment buildings in high-occupancy areas where lighting runs around the clock.
In many cases, lighting upgrades pay for themselves through utility savings in just a few years.
Increasing Property Value
Lighting upgrades also have a positive impact on property value. Well-lit buildings are more marketable to potential buyers and renters.
Studies show that green building features like energy-efficient lighting can boost a property’s valuation by several percentage points. In competitive markets, this makes buildings more appealing to tenants while helping owners secure higher rents and better sale prices.
Additionally, many states and municipalities offer incentives and rebates for lighting retrofits, improving the return on investment.
Popular Lighting Upgrades for Apartment Buildings
LED Retrofitting
LED retrofitting is one of the simplest and most cost-effective upgrades for multifamily properties. LEDs offer longer lifespans and use a fraction of the electricity of older technologies like incandescent and fluorescent bulbs.
For apartment building owners, this means:
- Lower energy bills
- Reduced maintenance costs due to fewer bulb replacements
- Better light quality for tenants
LED retrofits are also compatible with rebate programs across many states.
Smart Lighting Systems
Integrating smart lighting controls with LED retrofits takes efficiency to the next level. These systems include occupancy sensors, daylight sensors, and automated scheduling.
For example, lights in common areas such as stairwells or garages can automatically dim or shut off when unoccupied, saving thousands of dollars annually on electricity costs.
Smart lighting also improves safety by ensuring areas are well-lit when needed and conserving energy when not.
Motion-Sensor Lighting
Motion-sensor lighting is especially useful for exterior areas, parking lots, and walkways. These systems detect movement and activate lights only when necessary, reducing energy consumption while enhancing security.
For apartment buildings, this can:
- Deter unwanted activity after dark
- Reduce liability by improving visibility
- Lower overall energy use
Combining motion sensors with LED technology provides an affordable solution for improving both security and efficiency.
The Broader Benefits of Modern Lighting Upgrades
Better Energy Efficiency
Upgrading lighting is one of the fastest ways to improve a building’s energy efficiency profile. By switching to LEDs and smart controls, owners can reduce their building’s carbon footprint and meet growing sustainability demands from residents and regulators.
Lighting retrofits often complement other energy initiatives such as solar installations, HVAC upgrades, and EV charging stations.
Safer and More Secure Properties
Enhanced lighting contributes to a safer environment. Numerous studies have linked improved exterior lighting to lower crime rates and fewer accidents.
Apartment buildings with upgraded lighting systems help tenants feel more secure, especially in shared spaces like parking areas, lobbies, and corridors.
Reduced Maintenance Costs
LED lights last significantly longer than traditional bulbs, with lifespans exceeding 50,000 hours in many cases. This means fewer replacements and less time spent on lighting repairs.
For property managers, this translates into lower labor costs and fewer service calls, freeing up resources for other critical building operations.
Why Apartment Building Owners Choose Lightility
At Lightility, we specialize in helping apartment building owners reduce energy consumption and improve their properties through advanced lighting solutions.
Our process includes:
- Site assessments
- Energy audits
- Lighting design and specification
- Installation and rebate management
We partner with owners of apartment buildings nationwide, offering custom retrofit and smart lighting solutions tailored to each property’s needs.
As energy costs continue to rise, Lightility helps multifamily owners take proactive steps to increase property value, reduce operating costs, and meet modern tenant expectations.
Why Trust Lightility for Your Apartment Building
Lighting upgrades are more than just a building improvement—they’re a strategic investment.
At Lightility, we help apartment building owners unlock energy savings, improve tenant satisfaction, and boost property value with industry-leading lighting solutions.
Ready to see how a lighting retrofit can transform your property? Contact Lightility today for a consultation.
FAQs
1. What are the best lighting upgrades for apartment buildings?
The most popular lighting upgrades include LED retrofitting, smart lighting systems, and motion-sensor lighting to improve energy efficiency and tenant safety.
2. How much can apartment buildings save with LED lighting?
Apartment buildings can reduce lighting-related energy costs by up to 75% by switching to LED technology and smart lighting controls.
3. Why is lighting important in apartment building common areas?
Well-lit common areas improve security, reduce liability, and create a more inviting environment for tenants, helping with retention and property value.
4. Do lighting upgrades increase apartment building value?
Yes. Energy-efficient lighting can raise property value by reducing operational costs and improving the building’s appeal to renters and investors.
Marnie Abramson is at the helm of Lightility, leading the charge in energy conservation solutions. Her visionary leadership has propelled Lightility to the forefront of the industry, specializing in reducing energy costs and enhancing sustainability for businesses. Marnie’s approach to energy conservation combines cutting-edge technology with strategic planning, ensuring clients receive comprehensive and customized solutions. Under her guidance, Lightility is dedicated to helping businesses navigate the complexities of energy management, offering insights into the latest trends, technologies, and practices that drive energy efficiency and environmental responsibility.