Transcript Document
1 SUSTAINABILITY AND REAL ESTATE MANAGEMENT In This Chapter > Owner’s goals and expectations > Key drivers toward sustainable real estate management > Sustainability and different property types 1-1 The Owner’s Goals and Expectations 1-2 Sensible and Sustainable > Can be good, profitable management > Objectivity is important > Do not make assumptions about higher value based on general “greenness” > Use data on specific cost savings to make case 1-3 Tenant and Resident Demand > Employee absenteeism and recruiting > Marketing impact for residential properties > CAM charges > Green-ready 1-4 Rising Resident Demand 1-5 Impediments to Sustainability > Pass-through charges in commercial > Owner-paid utilities in residential 1-6 Resistance Is Common > Myths about sustainable real estate – Sustainability is a fad – Costs are exaggerated – Old buildings cannot be sustainable > Other real estate practitioners who lack knowledge of sustainability Brokers Lenders Contractors 1-7 The Bottom Line > Increased demand > Lower operating expenses 1-8 Case Study: Reduced Operating Expenses—Multifamily > Double-glazed windows > Electrical chiller with VFD > Variable volume exhaust > Internal shades > CFLs and fluorescents > HVAC microprocessor > 10 percent energy reduction 1-9 Source: Greg Martin, CPM®, Draper & Kramer, Incorporated; photo: dominicphoto.com Case Study: Reduced Operating Expenses—Commercial > Major renovation > LEED and Green Globes > Total payback less than 8 years > 14 percent ROI > $78,000 annual cost savings 1-10 Source: Rocky Mountain Institute, Built Environment Team http://bet.rmi.org Payback Period and Cost-Benefit Analyses > Cost of Upgrade ÷ Annual Savings = Payback Period > Cost-benefit analysis Quantitative factors Qualitative factors 1-11 The Triple Bottom Line > People, planet, and prosperity > Tailor discussion to priority of owner, tenant, or resident 1-12 Regulations > Understand relevant regulations > Track what’s on the horizon > Keep property in compliance—a risk management issue > Share information with regulators and policymakers if desired – 1-13 Through professional associations Incentives > Federal and state tax credits > Rebates from utilities > Grants for equipment, commissioning, consulting > www.dsireusa.org > City and state Web sites > Utility representative 1-14 Voluntary Programs and Standards > USGBC LEED > ENERGY STAR > Green Globes > ANSI National Green Building Standard™ (multifamily) > ANSI/ASHRAE/IESNA Standard 90.1 > ANSI/ASHRAE Standard 90.2 > 2030 Challenge—Architecture 2030 > BOMA International 7-Point Challenge 1-15 Sustainability and Different Property Types > Some solutions apply to all property types; some are type-specific – > > > > 1-16 Solutions must apply to your specific property Office Multifamily Retail Industrial Exercise > Multifamily scenario - What information would you seek and what analysis would you perform? What would you recommend? > Office scenario 1-17 What information would you gather for first meeting? What will you do to alleviate concerns?