Energy Efficient Buildings Make Economic Sense

Are sustainability and energy efficiency upgrades playing a role in today’s down commercial real estate market?

Definitely, say those in the field. “I recently lost a 20,000-square-foot office tenant to a Silver LEED [Lead-ership in Energy and Environmental Design] certified building that was $2.12 more per square foot than our building,” says Doug Webster, an office leasing specialist with Grubb & Ellis./Furman in Greenville, S.C. “The tenant’s broker said they preferred our location, layout, and lower rate, but the fact that the [building] owners were not willing to institute a formal
sustainability program caused this national engineering firm to select the LEED location.


National rental rate differences for Energy Star buildings vs. their peers have increased from $2.32 psf in 2005 to $4.73 psf in 2009. If only LEED-certified buildings are compared to non-certified buildings, the rental rate gulf is $9.06 psf. These are serious incentives for landlords to upgrade their office buildings. Landlords are quickly realizing that besides being environmentally minded, they must make energy-saving improvements simply to compete for tenants — especially in a down market.

Sealing the Envelope

What retrofitting measures offer the most return on the investment when either selling the building or attracting tenants and achieving higher rental and occupancy rates?

Energy savings is the obvious place to start. Te larger wastes are in lighting, heating, ventilation, and air conditioning systems, and the thermal envelope of the building. More than 70 percent of existing buildings have not upgraded lighting, HVAC, insulation, or windows, according to engineering research reports. Yet a 2006 U.S. Green Building Council survey found that building owners save 90 cents psf annually by retrofitting their properties, and earn back their investment in two to 2.5 years.

Before making any changes, find out where and how much energy is currently being used. Many utility companies will do a free or inexpensive energy audit to discover a building’s unique energy deficiencies and potential for improvement, says Timothy Buckley, LEEDAP,
an architect with Greenstone Architecture in Vancouver, Wash. “Based on the energy audit findings, you can then assess upgrade needs, estimate first costs and returns on the investments, and begin establishing priorities for upgrades,” Buckley says.


Lighting the Way

“If considering a wholesale lighting replacement, look at reducing lighting power budgets and using high-efficiency low-mercury fluorescent systems, or even LED,”

Lighting system upgrades range from simple changes to a complete replacement. Easy changes include reducing excessive or unneeded lighting. For example, on a small scale, one lamp can be removed from existing three-tube fl uorescent systems, and for larger areas, occupancy sensors and time clocks can automatically reduce hours of lighting. A Portland, Ore., building owner
replaced the 24-hour, seven-days-a-week fluorescent lighting in a four-acre parking garage with motion-activated lights that dim by 90 percent when no one is around. The same approach can be used in interior restrooms, storage areas, hallways, and other infrequently used common areas.

“If considering a wholesale lighting replacement, look at reducing lighting power budgets and using high-efficiency low-mercury fluorescent systems, or even LED,” Buckley says. “The initial cost of LED technology is still pretty steep; however, the energy savings over time are significant — up to 70 percent, according to some universities that have made the switch. And it may make it worthwhile when considering LED’s incredibly long life. The reduced maintenance and
costs savings associated with not having to re-lamp other systems can be a huge factor.”

Deregulated purchasing of electricity at lower rates is another area for great cost savings. Grubb & Ellis manages facilities-related purchasing for United Stationers at 80 locations across the U.S. It purchased electricity at lower rates in deregulated states for a savings of $865,000.

The owner of New York’s Sony Building also chose Grubb & Ellis to manage the building, including reducing energy and operating expenses. Solutions included making recommendations for electricity purchasing and including the Sony Building in a pooled bid. G&E also reduced peak rate charges by reviewing electrical charges and time-of-day usage records to determine spike usage. After isolating the cause and changing procedures, G&E reduced the building’s electrical costs by $1 million per year. A lighting retrofit resulted in additional energy savings and a local tax rebate of $400,000.

Full article available at www.cire.com

Lighting Retrofit Expertise






Value Energy Solutions is an Atlanta based lighting retrofit company that helps owners, managers and engineers reduce their energy costs. Value Energy Solutions has more than 30 years experience providing creative and effective lighting solutions that improve the illumination for building users and reduce electrical bills. Their expertise, wide selection and value pricing cannot be beat. For more information please call (678) 501-4880 or visit our lighting retrofit website- www.valueenergysolutions.com

Facility Managers Need to Know If LED Lights Are Right for Their Facility

Light emitting diode (LED) illumination is being hailed as the next revolution in lighting. But facility managers should take a close look at specific products to determine if they are appropriate for specific needs. Guidance is available from Department of Energy (DOE) and professional lighting organizations, but as with most emerging technologies, it’s worthwhile to test before you invest.

LEDs are a form of solid-state lighting (SSL) that produces light through an electronic process that does not involve mercury, filaments or gases. LEDs may emit monochromatic (i.e., single color) light, or mixtures of colors, including white light. Some units can quickly change the balance of those colors, producing spectacular results. This capability alone has attracted great attention from sign, exhibit and entertainment lighting manufacturers and practitioners.

As LED exit signs became popular and economical in the 1990s, they were accepted by the facility management community. Many facility managers are now looking at the myriad choices of LED lighting being promoted by lamp suppliers, fixture manufacturers and many new startup companies.

Facility managers, lighting designers and contractors have been attracted by LEDs’ unique characteristics: extremely long lifetime (100,000 hours is often mentioned), no disposal issues (LEDs contain no mercury), very low heat in their light output (excellent for exhibiting art, artifacts and products), no color shift (as occurs with some HID sources), no sensitivity to ambient temperature (LEDs start and work fine, warm or cold), no delayed restart as with HID, dimmable using incandescent dimmers, no flicker or hum, and no bulky ballasts.


http://www.facilitiesnet.com/lighting/article/Facility-Managers-Should-Determine-If-LEDs-Are-Appropriate-For-Specific-Needs--11705

Value Energy Solutions is an Atlanta based lighting retrofit company that helps owners, managers and engineers reduce their energy costs. Value Energy Solutions has more than 30 years experience providing creative and effective lighting solutions. Their expertise wide selection and value pricing cannot be beat. For more information please call (678) 501-4880 or visit our lighting retrofit website- www.valueenergysolutions.com

BOMA Presents 40 Tips to Improve Energy Efficiency

In honor of the 40th anniversary of Earth Day, BOMA International provided 40 Earth-Friendly Tips to help commercial real estate professionals optimize building performance. From recycling to energy management to sustainable landscaping, these tips provide low-cost solutions to green buildings and reduce operating costs.


Energy Efficiency

1. Benchmark energy consumption through ENERGY STAR® Portfolio Manager
2. Regularly inspect building equipment
3. Convert inefficient lamps and ballasts to T8, T12 and T5 lamps
4. Install occupancy sensors
5. “Green” your roof to reduce to reduce heat load to the building
6. Automatic “lights out” at 7 p.m. with tenant override mechanism
7. Take advantage of federal tax credits on energy efficiency improvements
8. Hold vendor/tenant Q&A events

Water Conservation

9. Benchmark water consumption through ENERGY STAR Portfolio Manager
10. Water early in the morning to reduce evaporation
11. Install in-ground moisture sensors
12. Use a broom to clean driveways and sidewalks
13. Landscape with perennial plants
14. Install aerators in bathroom and break room sinks
15. Monitor activities with sensors, such as motionsensor faucets
16. Harvest rainwater for landscaping Reduce, Reuse, Recycle
17. Recycle old cell phones for the needy
18. Hold an e-Waste day and collect electronics
19. Use recycled material in restroom paper products
20. Use local and recycled building materials
21. Add composting to your landscape maintenance
22. Use coreless bath tissue
23. Work with vendors who have recycling programs
24. Utilize mixed recycling

Tenant Awareness

25. Give away CFL bulbs to tenants in exchange for incandescent bulbs
26. Organize energy efficiency and sustainability tenant councils
27. Encourage tenants to power down during off hours
28. Institute an Energy Awareness Program
29. Include sustainability tips in monthly newsletters
30. Install bicycle racks in the garage
31. Offer preferred parking spots for compact cars and hybrid vehicles
32. Ask tenants to switch off overhead lights when daylight is sufficient

Indoor Air Quality

33. Invite green vendors to exhibit/discuss products on Earth Day
34. Use air filters and HEPA vacuums to improve IAQ
35. Use low-VOC paints/sealants/adhesives for building improvements
36. Insure that your janitorial service uses green cleaning products
37. Dispose of garbage promptly and properly
38. Do not block air vents or grilles
39. Develop a preventative IAQ management program
40. Promote your green cleaning program to tenants

Lighting Retrofit Easy Way To Decrease Energy Costs

Considering a lighting retrofit for your office building? You need the expertise and wide selection of lighting products available from Value Energy Solutions. They are one of the largest lighting retrofit companies in the nation. Based in Atlanta, GA. they have been helping building owners reduce their energy bills for almost three decades. To talk with one of their lighting consultants please call (678) 501-4880 or visit their lighting retrofit website- www.valueenergysolutions.com

Industrial Buildings have Unique Energy Saving Opportunities

May 2010

Thinking Outside the (Industrial Facility) Box

By Kylie Wroblaski

Every facility has challenges – but due to the sheer size of industrial facilities, these buildings have the potential to have industrial-sized challenges

With the average size of an industrial facility exceeding 200,000 square feet, and often with several tenants spanning the space, these buildings have the potential to bring challenges of great scale to the companies that own them.

Roofs are often thought of as the problem hotspot, but as uncovered here, the list of challenges presented by industrial facilities ranges – especially considering the increased demand for energy efficiency. If you own or manage an industrial facility, you must take these things into consideration (as well as the dwindling economy), and come up with creative solutions to the challenges these facilities offer. Check out what some of your peers are doing …

Embracing Energy-Efficient Lighting

"Energy and operational efficiency are incredibly important, especially as everyone is trying to be cost conscious and making sure that a facility is competitive in terms of occupancy," says Joel Pizzuti, president and COO of The Pizzuti Companies. "Trying to determine ways to cut energy costs and looking at different ways to become LEED certified or operate as a sustainable building are important, too."

Tenants are looking not only at lease rates, but also at operating expenses, he explains. "It’s important for owners and property managers to make sure the operating expenses are as controlled as possible. People are scouring their budgets to look at ways to save money; in doing that, it’s important to make sure we still maintain a really high level of service for tenants."

While it may be an extra upfront expense for you, one way to cut operating expenses is to employ alternative energy solutions. The Pizzuti Companies did this by installing prismatic skylights when it built a new facility in Chicago . "We put in a series of prismatic skylights that act as a way to light the building using natural light and not as many high-bay lighting fixtures," says Pizzuti. "This is resulting in a 20-cent decrease per square foot to run the building over the span of a year. On a clear day, we can get 45 to 50 footcandles of natural light inside the warehouse."

Adding skylights are an upfront cost, "but we felt like, long term, it would add a lot of value to the building, cut down on the expenses for our tenants, and make us more competitive when we’re trying to lease the facility," says Pizzuti. Happy tenants and easier leasing down the line make a nominal upfront cost more than worth it.

If natural lighting isn’t an option, the use of energy-efficient lighting is another way to cut operating costs. Think about installing a T5 or T8 system with occupancy sensors. "If somebody is moving within an aisle of racking, that aisle will light up. As they leave, the warehouse lights won’t stay on in areas where nobody is working," says Lance Ryan, vice president of marketing and leasing for Watson Land Company. "Over time, there’s a huge savings in terms of utilities, and [we’re seeing] up to a 50-percent reduction in utility costs with energy-efficient lighting. In addition, you’re also lowering ongoing maintenance because you’re not using warehouse lights as frequently, so your energy-efficient lighting doesn’t require a change-out as frequently."

For complete article-http://www.buildings.com/Magazine/ArticleDetails/tabid/3413/ArticleID/9808/Default.aspx
Kylie Wroblaski (kylie.wroblaski@buildings.com) is associate editor for BUILDINGS magazine.

Considering a lighting retrofit for your office building? You need the expertise and wide selection of lighting products available from Value Energy Solutions. They are one of the largest lighting retrofit companies in the nation. Based in Atlanta, GA. they have been helping building owners reduce their energy bills for almost three decades. To talk with one of their lighting consultants please call (678) 501-4880 or visit their lighting retrofit website- www.valueenergysolutions.com

Energy Efficient Investment to Increase in 2010

Those looking for signs that the U.S. economy is rebounding can find encouragement in the fourth annual Energy Efficiency Indicator released recently by Johnson Controls (NYSE: JCI), the global leader in delivering products, services and solutions that increase energy efficiency in buildings.

A survey of more than 1,400 North American executives and managers responsible for making investments and managing energy in commercial buildings found that planned investment in energy efficiency is expected to rebound in 2010. Following a decline last year, the survey found that 52 percent (up from 46 percent) are planning to make capital investments in energy efficiency and 60 percent are planning (up from 55 percent) to make operating budget expenditures in efficiency programs over the next twelve months. However, a significant number of the business leaders surveyed (38 percent) said that the largest barrier to making energy efficiency investments is limited capital availability.

“Our research shows attention to energy efficiency is continuing its growth among business leaders,” said Dave Myers, president of Johnson Controls Building Efficiency business. “Commercial buildings consume 18 percent of the energy and 35 percent of electricity used in the U.S. each year. A focus on improving energy efficiency in existing buildings is the best way to address carbon reduction goals being set by a growing number of organizations.”

The North America research was conducted by Johnson Controls in association with the International Facility Management Association (IFMA) and the American Society of Healthcare Engineering (ASHE). A total of 1435 decision-makers were surveyed in North America between February 23 and March 15, including CEOs, CFOs, real estate leaders and facility managers from a range of organizations including small businesses, global corporations and the public sector.

"This research helps our members to compare their priorities and energy management efforts with those of their peers,” said Donald Young, vice president of communications for IFMA. "This year’s results demonstrate that workplace professionals not only play a major role in controlling operational costs, but also are among the most important decision makers when it comes to managing an organization’s carbon footprint and public image.”

According to this year's survey, 65 percent of business leaders say they are paying more attention to energy efficiency than they were one year ago; 84 percent of respondents say that energy efficiency is a priority for new construction and retrofit projects planned for this year.

The most important factor influencing energy efficiency decisions is energy cost savings, with 97 percent of respondents identifying it as significant. Sixty four percent expect energy prices to rise in 2010. Overall the average expectation of respondents is a seven percent increase in the combined price of energy over the next 12 months.

When asked what specific energy efficiency improvements have been implemented over the past 12 months, the most popular are those with low capital cost and/or a rapid return on investment. The survey shows that 72 percent switched to energy efficient lighting; 63 percent trained facilities staff; 61 percent educated building occupants to save energy; 56 percent made set point adjustments; 40 percent installed occupancy or daylight sensors and 33 percent upgraded building controls.

Executives were also asked this year to predict what energy-related technologies would see the greatest improvement in performance-to-price ratio over the next 10 years. The top picks were lighting (51 percent), smart building technology (44 percent), solar PV (38 percent), electric and plug-in hybrid vehicles (28 percent) and nuclear power (22 percent).

To see a full copy of the report please visit-http://www.johnsoncontrols.com/publish/us/en.html


Lighting Retrofits Important Energy Efficiency Strategy

Lighting retrofits were the most popular energy efficiency measure over last 12 months. Consistent with results from the past three years, lighting retrofits remain the most popular energy efficiency improvement measure among respondents. Data indicates that 72 percent have switched to energy efficient lighting and 40 percent have installed occupancy or daylight
sensors. Other popular measures amongst the 33 included in this survey this year include:

• Facilities staff education (63%)
• Building occupant education (61%)
• Set point adjustments (56%)
• Replacing inefficient equipment before the end of its useful life (36%)
• Upgrading building controls (33%),
• Negotiating contracts with energy suppliers,
• Increasing preventive maintenance (25%),
• Installing variable speed drives (25%),
• Participating in demand response programs (19%)
• Installing energy saving glass in windows (19%), and
• Increasing building insulation (19%).

Considering a lighting retrofit for your office building? You need the expertise and wide selection of lighting products available from Value Energy Solutions. They are one of the largest lighting retrofit companies in the nation. Based in Atlanta, GA. they have been helping building owners reduce their energy bills for almost three decades. To talk with one of their lighting consultants please call (678) 501-4880 or visit their lighting retrofit website- www.valueenergysolutions.com

IFMA Study Reports On Great Potential For Energy Savings in Office Buildings

The IFMA Foundation has released another informative and impressive White Paper on sustainability issues that impact commercial real estate owners. The White Paper, The Economics of Sustainability in Commercial Real Estate was written by Kristian Peterson and Ross Gamill. I have included some highlights from their report.

"Numerous studies have shown that retrofitting an office building with energy efficiency improvements can significantly reduce operating costs, yet many existing office buildings have not been retrofitted. The objective of this white paper is to explain the incentives and motivations of various parties throughout the real estate management chain so that real estate managers can better understand why investments in energy efficiency are not more prevalent. The white paper focuses specifically on existing office buildings.

The energy efficiency of a building is limited by how the building is designed, engineered, constructed, operated and maintained. Achieving greater energy efficiency in an existing building depends on several factors, including the building envelope, system types and efficiency, energy end use, such as plug loads, and building operation and maintenance practices. The efficiency of the building envelope impacts the energy load for the building, including the required energy used to heat, cool and ventilate.

Simple strategies to reduce heating and cooling loads include appropriate insulation, optimizing window glazing area, minimizing the infiltration of outside air, and using an opaque roofing material. Additionally, the envelope impacts the lighting load for the building, depending upon how much natural daylight penetrates through windows into the interior spaces. Common design features include the enhancement of natural daylight into a building through the use of skylights, light shelves, tubular daylighting and other means of daylight harvesting. Mechanical systems impact building energy efficiency based on the age of the equipment, repair and maintenance program, and whether systems are operated as designed and have been commissioned.

The efficient use of energy impacts the operating cost of a building. The average cost of energy for a typical commercial building may depend on several factors, including the geography, climate, building type and location. Energy costs are also one of the most controllable expenses unlike other major line items, such as taxes and insurance. The energy expenditure for all buildings is $1.09 per sq. ft. ($11.73 per square meter) (US dollars) and $1.40 per sq. ft. ($15.07 per square meter) (US dollars) for office buildings (CEBECS 2003).

Energy prices have significantly increased over the past several years, underscoring the importance of energy efficient operations. Since 2000, average commercial energy prices have increased approximately 25 percent (Ciochetti & McGowan 2009).There is a wide range of solutions available to increase the efficiency of a commercial building. One way to look at these solutions is to categorize projects by expected initial cost. Categories might include no-cost improvements, low-cost improvements and significant cost improvements (Dirksen & McGowan 2008) (Table 1).

No-cost improvements

Seal window and door frames
Change filters regularly
Replace washers and cartridges in leaking faucets
Replace light bulbs
Review current building operating procedures


Lighting is a low-cost improvement with significant energy reduction potential. A lighting retrofit may include replacing lamps, ballasts or the entire luminaire (both the lamp and ballast). For example, simply replacing 40W T12 lamps and magnetic ballasts with 32W T8 lamps with standard electronic ballasts could save 87W and $39 (US dollars) per fixture per year (Conley 2010). A second example would be replacing a wall-mounted light switch with an occupancy sensor, where appropriate, can reduce energy consumption up to 25 percent (Roberts 2009). It should be noted that any solution should be evaluated not only on cost but holistically. For example, providing a tenant control over ventilation may reduce cooling loads and also improve occupant comfort.

To read the full report please visit-http://www.ifmafoundation.org

About the authors:

Kristian Peterson is an expert in strategic decision making regarding energy efficiency improvements in commercial office buildings. He recently received his Master of Science in Real Estate Development from the MIT Center for Real Estate. Before pursuing his master’s, Kristian spent three years advising executive management at a private real estate investment company where he performed site and market evaluations to establish asset market value and create building proforma.

Ross Gammill
Ross is director of commercial due diligence at Allonhill, a Denver-based provider of both residential and commercial mortgage due diligence. Prior to Allonhill, Ross was an underwriter for Bridger Commercial Funding, a commercial mortgage-backed securities conduit lender. At Bridger, Ross was involved in transactions totaling over $400 million (US dollars).

Lighting Retrofits Save Energy

Considering a lighting retrofit for your office building? You need the expertise and wide selection of lighting products available from Value Energy Solutions. They are one of the largest lighting retrofit companies in the nation. Based in Atlanta, GA. they have been helping building owners reduce their energy bills for almost three decades. To talk with one of their lighting consultants please call (678) 501-4880 or visit their lighting retrofit website- www.valueenergysolutions.com