Commercial Building Energy Consumption by Building Type

Running a business drains more than just your time—it devours massive amounts of energy. Commercial buildings consume approximately 18% of total U.S. energy, generating annual costs around $190 billion. Every commercial building owner seeks ways to slash energy consumption and reduce operating expenses through strategic demand reduction.

From healthcare facilities to retail stores, educational institutions to worship centers, these buildings serve diverse industries requiring consistent customer amenities regardless of cost. Unlike residential properties where homeowners can adjust thermostats during winter months, commercial facilities must maintain continuous comfort through electricity-intensive air conditioning, heating, refrigeration, and lighting systems.

Electricity dominates commercial energy sources at 60% of total consumption, followed by natural gas at 34%. Buildings exceeding 100,000 square feet represent only 2% of U.S. commercial structures but consume over one-third of all commercial energy, according to the 2022 Commercial Buildings Energy Consumption Survey.

Using Energy Information Administration data, LED Lighting Supply analyzed commercial buildings by principal use to identify the highest energy consumers. This 2018 commercial energy data, released December 2022, encompasses space heating, cooling, ventilation, water heating, lighting, cooking, refrigeration, office equipment, and computing systems.

Note that highest overall energy use doesn’t necessarily correlate with highest per-building consumption due to varying industry prevalence across different facility types.

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Vacant Buildings

Annual energy use for vacant buildings: 5B kilowatt-hours (39K kilowatt-hours per building)

Vacant buildings consume substantial energy maintaining essential systems for building functionality. Space heating accounts for roughly 40% of vacant building energy output, cooling demands another 20%, while lighting consumes 10%. During COVID-19’s peak, companies discovered lease agreements legally required minimum operating hours for heating, cooling, and other systems even in completely empty office buildings.

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Public Order and Safety

Annual energy use for public order and safety: 21B kilowatt-hours (263K kilowatt-hours per building)

• Fire or police station: 7B kilowatt-hours (122K kilowatt-hours per building)
• Courthouse or probation office: 5B kilowatt-hours (595K kilowatt-hours per building)
• Other public order: 9B kilowatt-hours (794K kilowatt-hours per building)

Public safety buildings direct approximately 35% of energy toward heating, with cooling, water heating, and lighting each consuming 10%. Fire stations experience amplified energy demands through kitchens, gyms, laundry facilities, and other appliances serving round-the-clock staff. Apparatus bays housing firetrucks require substantial heating. Police stations maintain continuous operation of telephone systems, computer networks, HVAC systems, and electricity-powered infrastructure for extended hours.

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Religious Worship

Annual energy use for religious worship: 27B kilowatt-hours (61K kilowatt-hours per building)

Nearly half of religious worship facilities’ energy expenditure targets heating due to structural challenges. Many buildings feature notoriously old construction, open architecture, and poor insulation. High ceilings allow heat to rise far above occupants, demanding increased energy for comfortable temperatures. Particularly old facilities often contain outdated, energy-inefficient systems requiring modernization.

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Service Centers

Annual energy use for service: 45B kilowatt-hours (52K kilowatt-hours per building)

• Post office or postal center: 5B kilowatt-hours (145K kilowatt-hours per building)
• Vehicle service or repair: 12B kilowatt-hours (44K kilowatt-hours per building)
• Vehicle storage or maintenance: 14B kilowatt-hours (38K kilowatt-hours per building)
• Other service: 14B kilowatt-hours (71K kilowatt-hours per building)

Service buildings dedicate at least 50% of energy consumption to heating—exceeding all other commercial industries. Lighting comprises nearly 20% of total energy use. Vehicle service facilities, garages, and maintenance areas demand substantial energy, though cooling costs can decrease by utilizing natural airflow through garage doors during warmer months. Lighting, ventilation, welding equipment, and power tools require significant electricity. Post offices experience inefficient heating when dock doors for truck loading remain improperly closed, compromising insulation.

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Food Sales

Annual energy use for food sales: 54B kilowatt-hours (329K kilowatt-hours per building)

• Convenience store (with or without gas station): 19B kilowatt-hours (156K kilowatt-hours per building)
• Grocery store or food market: 34B kilowatt-hours (1.0 million kWh per building)

Food sales facilities allocate nearly 40% of energy toward refrigeration—the largest proportion among all commercial categories. While overall energy intensity matches food service buildings, food sales locations demonstrate higher electricity intensity compared to natural gas consumption. Extended operating hours beyond typical commercial schedules significantly increase total energy consumption.

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Food Service

Annual energy use for food service: 61B kilowatt-hours (212K kilowatt-hours per building)

• Fast food: 18B kilowatt-hours (260K kilowatt-hours per building)
• Restaurant or cafeteria: 37B kilowatt-hours (214K kilowatt-hours per building)
• Other food service: 5B kilowatt-hours (120K kilowatt-hours per building)

Food service ranks among the three most energy-intensive commercial industries. Cooking dominates energy allocation at approximately 40%—eclipsing all other commercial sectors. This encompasses mass food preparation but excludes small-scale equipment like vending machines, coffee makers, or microwaves.

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Public Assembly

Annual energy use for public assembly: 87B kilowatt-hours (179K kilowatt-hours per building)

• Library: 7B kilowatt-hours (267K kilowatt-hours per building)
• Entertainment or culture: 17B kilowatt-hours (246K kilowatt-hours per building)
• Recreation: 30B kilowatt-hours (195K kilowatt-hours per building)
• Social or meeting: 26B kilowatt-hours (116K kilowatt-hours per building)
• Other assembly: 8B kilowatt-hours (397K kilowatt-hours per building)

Public assembly venues consume nearly 50% of energy for heating and approximately 20% for cooling. Movie theaters utilize substantial air conditioning energy while requiring less ventilation than expected. Large screens and sound systems demand significant electricity, though packed screenings prove more energy-efficient per person than individual home viewing. Museums benefit significantly from efficient lighting upgrades given hundreds of continuously illuminated exhibits and artwork displays.

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Warehouses and Storage

Annual energy use for warehouses and storage: 95B kilowatt-hours (120K kilowatt-hours per building)

• Nonrefrigerated: 85B kilowatt-hours (108K kilowatt-hours per building)
• Refrigerated: 10B kilowatt-hours (2.8 million kWh per building)

Warehouse facilities typically allocate 40% of energy to heating, 20% to lighting, and 10% to cooling, with variations between refrigerated and nonrefrigerated operations. Refrigerated warehouses preserve perishable items including produce, seafood, supplements, vaccines, blood samples, and cosmetics. These facilities naturally consume massive energy for refrigeration and are projected for significant growth in coming years.

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Health Care

Annual energy use for health care: 96B kilowatt-hours (698K kilowatt-hours per building)

• Inpatient: 65B kilowatt-hours (7.6 million kWh per building)
• Outpatient: 31B kilowatt-hours (238K kilowatt-hours per building)

Inpatient healthcare facilities rank among the most energy-intensive commercial buildings for heating and ventilation, completing the trio of highest energy-consuming industries alongside food service and food sales. While inpatient and outpatient facilities maintain similar heating and cooling percentages, outpatient facilities consume proportionally more energy for lighting and ventilation.

Healthcare energy consumption centers on heating, cooling, ventilation, lighting, and medical equipment operation. Strict air quality requirements for hospitals demand extensive HVAC system usage to maintain safety and comfort standards. Round-the-clock hospital operations necessitate greater energy dedication toward lighting and equipment compared to other commercial industries.

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Lodging

Annual energy use for lodging: 100B kilowatt-hours (484K kilowatt-hours per building)

• Hotel: 46B kilowatt-hours (703K kilowatt-hours per building)
• Motel or inn: 9B kilowatt-hours (222K kilowatt-hours per building)
• Dormitory, fraternity, or sorority: 9B kilowatt-hours (268K kilowatt-hours per building)
• Nursing home or assisted living: 30B kilowatt-hours (788K kilowatt-hours per building)
• Other lodging: 6B kilowatt-hours (212K kilowatt-hours per building)

Lodging establishments distribute energy fairly equally between space heating and water heating at approximately 20% each, with slightly lower allocation toward cooking and ventilation. Hotels cannot avoid energy consumption across virtually every amenity: refrigeration, climate control, heating, cooking, lighting, fitness equipment, pools, restaurants, bars, elevators, and office equipment. Nursing homes, motels, and dormitories provide similar amenities on smaller scales. Multiple residents and families simultaneously occupying these buildings exponentially increase energy usage through several refrigerators, computers, and appliances operating concurrently—far exceeding typical residential consumption.

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Education

Annual energy use for education: 128B kilowatt-hours (293K kilowatt-hours per building)

• College or university: 23B kilowatt-hours (385K kilowatt-hours per building)
• K-12: 96B kilowatt-hours (365K kilowatt-hours per building)
• Multi-grade school (any K-12): 14B kilowatt-hours (397K kilowatt-hours per building)
• Preschool or daycare: 4B kilowatt-hours (49K kilowatt-hours per building)
• Other classroom education: 5B kilowatt-hours (151K kilowatt-hours per building)

Educational schools dedicate slightly over 40% of energy expenditures to heating and approximately 10% to cooling. Computers, vending machines, and appliances frequently remain continuously powered. Schools particularly struggle with energy efficiency by leaving lights illuminated in unoccupied rooms and hallways—one Massachusetts school operated building lights continuously for eighteen months straight.

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Mercantile

Annual energy use for mercantile use: 180B kilowatt-hours (352K kilowatt-hours per building)

• Retail (other than mall): 71B kilowatt-hours (205K kilowatt-hours per building)
• Enclosed and strip malls: 109B kilowatt-hours (657K kilowatt-hours per building)

Mercantile facilities allocate approximately 25% of energy toward heating, though standalone retail locations outside mall environments consume comparatively more energy for lighting and ventilation.

While commercial lighting installation requires initial investment, long-term savings provide substantial returns. Mall environments proportionally consume more energy on cooking, refrigeration, and water heating due to food courts and vendor operations alongside retail shops. Additional energy sources include interior and exterior lighting—including large neon signage attracting customers—computers and tablets for checkout systems, water fountains, and vending machines.

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Offices

Annual energy use for offices: 227B kilowatt-hours (234K kilowatt-hours per building)

• Administrative or professional: 126B kilowatt-hours (227K kilowatt-hours per building)
• Bank or other financial: 9B kilowatt-hours (193K kilowatt-hours per building)
• Government: 32B kilowatt-hours (251K kilowatt-hours per building)
• Medical (nondiagnostic): 5B kilowatt-hours (99K kilowatt-hours per building)
• Mixed-use: 50B kilowatt-hours (423K kilowatt-hours per building)
• Other office: 5B kilowatt-hours (69K kilowatt-hours per building)

Offices rank second-highest in commercial computing system usage, trailing only computing-intensive data centers.

Computing encompasses computers, laptops, monitors, and servers. The largest proportion of office energy supports heating, ventilation, and lighting. Water heaters, server rooms, and certain lighting fixtures operate continuously within office environments to ensure uninterrupted functionality.

Turn Energy Data Into Lighting Savings

Understanding your building’s energy consumption creates the foundation for strategic LED lighting upgrades that deliver measurable results. Our experienced product specialists analyze facility-specific usage patterns and provide complimentary custom lighting plans tailored to your building type and operational requirements. Our team calculates precise energy savings projections based on your current lighting infrastructure, operating hours, and utility rates. These calculations demonstrate the exact payback period and long-term cost reduction your facility will achieve through LED conversion.