This should NOT come as a surprise to you. Commercial Real Estate Managers are leading the water conservation efforts in one direction – from the bottom-line up!
While we might not look like the face of “environmentalism” our faces are almost always fixed on the bottom line proof in the numbers. The fact is, more commercial managers are supporting energy-efficiency measures because it is a mandatory financial operational practice. There is NO line item for “waste” in our income reports!
In a recent survey from Ecova, a leading commercial sustainability management firm, found more than 1/2 of all commercial managers plan to spend more money and time in 2015 on technologies that help them gain control over their energy costs.
If you’re in commercial business you should already be analyzing your future energy cost estimates, and you should take a quick read of this eye-opening report.
When it comes to water the math is simple: Gallons saved equals hundreds of dollars in savings. It’s easy to “show them the money” when presenting the savings to owners and tenants alike.
There is also a double-savings possible by tapping into government rebates, tax incentives, and federal initiatives, added to the utility savings. Being in business here in San Diego does give us a head start on conservative property management styles, we tend to put water-wise thinking and action on the front burner.
In June 2015 The City of San Diego, along with over 3,900 other cities took part in the The Wyland Foundation’s Annual National Mayor’s Challenge for Water Conservation, with San Diego winning the Title of Most ‘Water Wise’ City in this Nationwide Challenge.
Commercial buildings are surprisingly “water-simple” to regulate from a property management perspective. We’re dealing with 3 primary water systems: Landscape, HVAC, and Tenant’s personal or business use (meaning toilet and tap).
Drought tolerant landscape offers commercial real estate a “double-savings” with the combining lowering water cost through use, and the added lower equipment cost (due to elimination of sprinklers and valves) including lower maintenance cost (due to near-elimination of labor intensive mowing.)
HVAC is where the real money savings is possible. HVAC is the largest user of water in commercial property, and newer high efficacy heating and cooling systems can increase the return on investment by up to 10% for retrofitting projects. Almost all larger commercial building systems use water to dissipate heat, and techniques to control water loss in the cooling process can significantly reduce a building’s water use during cooling season.
Our tenants do play a part in how water effects our commercial bottom lines, and there is a growing base of data to support a new trend that is developing. The greening of leasing covers not only the cost savings that tenants realize through higher efficiency, but also the savings that owners and managers can realize.
A green lease encourages collaboration between landlords and tenants to take action to improve efficiency. On average, green leasing saves tenants and building owners 10% to 20% each month on a building’s energy and water bills.
Another must read – a great article from the national real estate investor about the greening of leasing.
The spin-offs from higher energy efficiency is crating an emerging market that uses technology to help commercial business have more control of their energy cost and consumption.
Forbes brings us a list of the top 10 new companies in energy paralytics and how this field has revolutionized the concept of energy management.