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SUSTAINABILITY AND REAL ESTATE MANAGEMENT 1. In This Chapter > Owner’s goals and expectations >...

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SUSTAINABILITY AND REAL ESTATE MANAGEMENT 1
Transcript

SUSTAINABILITY AND REAL ESTATE MANAGEMENT1

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 andExpectations

1-2

Sensible and Sustainable

1-3

> 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

Tenant and Resident Demand

> Employee absenteeism and recruiting

> Marketing impact for residential properties

> CAM charges

> Green-ready

1-4

1-5

Rising Resident Demand

Impediments to Sustainability

1-6

> Pass-through charges in commercial

> Owner-paid utilities in residential

1-7

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

1-8

The Bottom Line

> Increased demand

> Lower operating expenses

1-9

> Double-glazed windows> Electrical chiller with VFD> Variable volume exhaust> Internal shades> CFLs and fluorescents> HVAC microprocessor> 10 percent energy reduction

Case Study: Reduced Operating Expenses—Multifamily

Source: Greg Martin, CPM®, Draper & Kramer, Incorporated; photo: dominicphoto.com

1-10

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

Source: Rocky Mountain Institute, Built Environment Team http://bet.rmi.org

1-11

Payback Period and Cost-Benefit Analyses

> Cost of Upgrade ÷ Annual Savings = Payback Period

> Cost-benefit analysis- Quantitative factors- Qualitative factors

The Triple Bottom Line

1-12

> People, planet, and prosperity

> Tailor discussion to priority of owner, tenant, or resident

Regulations

1-13

> 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– Through professional associations

Incentives

1-14

> Federal and state tax credits> Rebates from utilities> Grants for equipment,

commissioning, consulting> www.dsireusa.org> City and state Web sites> Utility representative

Voluntary Programs and Standards

1-15

> 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

1-16

> Some solutions apply to all property types; some are type-specific– Solutions must apply to your specific

property

> Office> Multifamily> Retail> Industrial

Sustainability and DifferentProperty Types

1-17

Exercise

> Multifamily scenario- What information would you seek and

what analysis would you perform?- What would you recommend?

> Office scenario- What information would you gather for

first meeting?- What will you do to alleviate concerns?


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