Commercial properties can see benefits from going green
By Pat Goerner, Contributing Writer
Austin Business Journal
Rarely in commercial real estate is something good for the bottom line, environment and government. But by incorporating the latest energy-efficient technologies, local building owners are able to capitalize -- both from a financial standpoint and on social conscious-level.
In February, Austin Mayor Will Wynn announced his new "Climate Protection Plan" for the city. The concept is to implement cost-effective, common-sense measures that will reduce greenhouse gas emissions, curb air pollution and keep energy bills low. With Austin Energy expected to achieve 700 megawatts of new conservation, the city aims to increase the energy efficiency of all new commercial buildings by 75 percent by 2015.
This means big changes are on the horizon for local property owners.
Commercial real estate buildings are massive producers of greenhouse emissions -- 38 percent of current emissions, according to experts. In Austin, and across the globe, the commercial real estate community will face increasingly strict codes and standards for energy efficiency. It's likely that few aspects of daily life will remain unaffected by the requirements.
As the spotlight remains focused on global climate change, optional compliance to reduce energy usage will eventually become mandatory. Many property owners and developers, including Aspen Properties, are working ahead by incorporating energy efficient equipment in their existing properties and new developments. The industry as a whole spends about $24 billion annually on energy costs. Energy is the single largest controllable cost, representing one-third of a typical office building's operating expense.
Taking realistic actions
The Building Owners and Management Association, or BOMA as it's more commonly known, is taking action in existing buildings with an operational excellence program called BEEP, which stands for BOMA Energy Efficiency Program. BEEP was launched in 2006. In partnership with the U.S. Environmental Protection Agency Energy Star program, BEEP's objectives are to educate building managers and the commercial real estate community on best practices for energy efficiency, to actively document success through recognition programs, and to communicate the value of successful management to the industry and stakeholders. If all BOMA members on a national basis reduced energy consumption by 10 percent, it would be equivalent to reducing global warming gases by 40 billion pounds, or removing 4 million cars from American roadways.
Locally, Austin Energy has built one of the most comprehensive energy efficiency programs in the nation. Key to Austin Energy's mission is getting commercial real estate buy-in for the operating expense savings.
One way Austin Energy is making it attractive for existing buildings to voluntarily meet new energy efficiency standards is through incentives and rebates. Most of the changes produce a return on investment within a short period of time.
The bottom line
In a city that has an innovation-driven vision, existing and new commercial real estate will have to embrace environmentally progressive practices in order to remain viable and meet the needs of the community. Before the hammer drops, building owners and managers have an opportunity to leverage cost savings that not only produce a quick return on investment but also position their buildings for the inevitable transition into a new era of efficiency.
Pat Goerner is a senior property manager at Aspen Properties. Susie Cummings, key account manager at Austin Energy, contributed to this report.
