Beware of Roadblocks
Cost is, of course, an obvious challenge for owners and managers when it comes to upgrading older properties. This is true not
only in the replacement of old appliances and the implementation of new systems, but it will also be felt in making any necessary property upgrades to accommodate the new technology.
With energy-efficient products constantly being improved, it
is important to know which products represent the best long-term investment for a property. One must consider the life expectancy of the technology and how available and cost effective
the maintenance and replacement of it will be in future years.
Newer energy-efficient fixtures and machines often may not
fit the standard measurements of older machines that have been
used for many years, requiring managers to resize laundry areas
or reconstruct areas to fit new fixtures, creating additional cost.
The greatest challenge, however, is with the residents at these
properties. Property owners and managers have to work with
tenants to keep them informed of changes and convince them
that these products, while different, are worth the sacrifice to
help the environment and save energy.
The views expressed in this article are those of the author and not
necessarily those of Real Estate Southern California.
Thomas K. Shelton is president of Western National Property
Management. He can be reached at 949-862-6292 or
tshelton@wng.com.
Green’s Cost: Truth & Fiction
You would imagine that by now, you would be hard pressed to find anyone who hasn’t already
adopted the green movement as his
own social, political and philosophical
campaign. But it still seems that somehow, during these tough economic
times, some companies remain anxious
about the perception of increased cost.
David Callahan, a LEED-certified vice president with CresaPartners’ Los Angeles office, talked with Real Estate Southern
Callahan
California editor Natalie Dolce about some advice for those
wary hold-outs.
RESOCAL: How is CresaPartners taking on the
green movement?
DAVID CALLAHAN: As a company, we are committed to helping clients leverage the opportunities and overcome the challenges that come with sustainable real estate practices. Our
advisors guide companies through the maze of initiatives,
incentives and regulations and work with clients to translate
green into long-term value.
RESOCAL: What about workplace costs?
CALLAHAN: Green initiatives can reduce operating expenses.
You can save 20% to 50% through energy-saving technologies,
natural daylight, ventilation and downsized equipment—and this
can translate into thousands of dollars. While certain measures
require some upfront investment, they typically pay for themselves
within three years, and sometimes within a few months.
RESOCAL: Do landlords need to be involved?
CALLAHAN: While the cooperation of landlords is critical, tenants can obtain LEED certification for their own space through
the LEED Commercial Interiors track.
RESOCAL: What do you advise companies that
want to go green?
CALLAHAN: Companies should designate a sustainability officer
or in-house champion to provide oversight. With the help of a
qualified real estate service advisor or project manager (ideally
one who is LEED-accredited), you will be better able to find the
right solutions for your space. These consultants can also help
you identify sustainable products. They can also advise on relocating to a newly constructed or existing green building.
RESOCAL: How much of a difference can we
really make?
CALLAHAN: Even small investments can make a big difference. Each company needs to evaluate its own situation and
determine how much of an impact it can make. By working
together, we can reduce the negative impact we have on the
environment as a whole and improve our own working
environments.—SOCAL
