Bright ideas | Saving energy in commercial buildings is good for Mother Earth and the expense sheet
The “green building” movement is not going away. That was the overwhelming message of this year’s Maine Real Estate & Development Association spring conference at the University of Southern Maine’s Abromson Center in Portland. Aptly titled “Energy solutions for an ever-changing market,” the conference was moderated by former Gov. Angus King and featured panel and audience discussions from a host of local energy and real estate development leaders.
Unlike other economic trends, the green movement is sustainable for obvious bottom-line reasons. As quantifiable data continues to come out on energy-efficient products, more property owners and developers are getting on board. Susan Ransom, a representative from PDT Architects of Portland, offered a real-life example at the conference, outlining the utility costs of the University of Maine Farmington’s new 44,500-square-foot education center. The LEED silver-rated building was built in 2007 and, over the last two years, has averaged utility costs of only $1.11 per square foot (including plug loads, equipment, heating, air conditioning, ventilation and lighting). This is a remarkably low number when compared to similar-sized building utility expenses that typically average $4 to $5 per square foot.
Doug Baston, a principal of North Atlantic Energy Advisors of Alna, said one positive result of this down economy is a renewed interest in green building initiatives. These environmentally conscious products and ideas have, in fact, been around for decades, he explained. But now that we are seeing rising vacancy rates and decreasing property values, commercial real estate owners are taking a more serious look at all cost-saving measures.
So, King asked each panelist what is the first thing commercial property owners should do to reduce high energy costs? Peter Benard, owner and president of Ledgewood Construction of South Portland, said he started with a personal audit of his company’s office space. He came in after hours one night and simply walked around the office listening and looking for wasted energy. He noticed lights left on, coffee machines running, heating and cooling air ducts leaking and desktop computers humming. After his personal audit, Benard issued an open challenge to his employees to help reduce energy waste. Ledgewood proceeded to save 30% in energy costs.
Putting green into practice
Amy Booth, a property manager at Boulos Property Management of Portland, suggested that lighting is the “low-hanging fruit” when it comes to cost saving. The turn-around time on payback for investments such as replacing older T-12 fluorescent fixtures with T-8 fixtures and electric ballasts is often less than two years. Another cost-saving tip, she said, is installing timers and/or motion sensors. The next time you are in downtown Portland after dark, take a quick glance up at some of the office towers. You will probably notice a number of offices with lights left on, wasted energy coming right out of someone’s pocket.
Another opportunity progressive building owners can capitalize on is marketing their building as green. Jamie Schwartz, chair of the real estate practice group at Bernstein Shur’s Portland office, explained that most commercial leases are written in a way that allows landlords to pass most or all utility costs on to their tenants. As such, properties that offer lower utility costs as a result of energy-efficient products will stand out against otherwise comparable buildings. My company is finding that, along with the usual questions on location, parking, nearby amenities, etc., prospective tenants want to know how green the available properties are. If UMF ever needs to market its education center for lease, at the top of their brochure, right next to the address, should read “$1.11/sf utility costs!”
A resource that the panel of experts consistently endorsed was Efficiency Maine. A program of the Maine Public Utilities Commission, Efficiency Maine’s sole mission is to develop and implement energy conservation programs throughout the state. It provides information and resources on federal tax credits and rebates, energy-saving tips for both residences and commercial properties, and serves as a conduit to streamline the process of developing a green building. More than once, audience members at the MEREDA conference requested one-stop-shopping answers to their energy questions. Find out more at www.efficiencymaine.com, and in the resource section of Mainebiz’s focus on green, starting on page 21.
As building owners and landlords become more aware of the need to save energy, solutions will keep pace with demand. We need to know where to find and how to implement those solutions. My best advice for commercial owners is to get educated and take advantage of the resources available locally and statewide. Beyond the environmental benefits, there is real potential for short- and long-term savings on your operating costs.
Justin Lamontagne, associate broker at CBRE/The Boulos Co. in Portland, can be reached at jlamontagne@boulos.com.
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