C‑PACE — the unfamiliar name that’s now serious money in commercial property financing

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Once-obscure energy conservation lending program breaks out in deal surge.

A wave of major commercial real estate deals are incorporating financing that lets owners spread energy conservation costs across long-term property tax payments, a practice that is gaining acceptance from more state governments across the country.

Developers, lenders and local elected officials are seizing on commercial property assessed clean energy financing, known as C-PACE, thrusting it into the heart of U.S. commercial real estate. They say the tool has moved from niche alternative to standard practice in a convergence that rarely happens quickly in commercial real estate finance.

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