Boulder Landscaping and Smarter Buildings
Woodmont Real Estate Services, a boutique third-party property management company based in Northern California, embraced the Institute of Real Estate Management’s Certified Sustainable Property designation for its portfolio of multifamily properties. Obtaining LEED certification is harder for circa 1980s and 1990s buildings, and the CSP’s six-month credentialing process and categories of management, energy, water, purchasing, recycling, and health “fit the bill,” says Jeff Bosshard, cpm, president of multifamily operations.
The IREM certification requires property managers to focus on the health of the residents, and that can be as simple as stocking three healthy options in vending machines. Additional measures Woodmont took: using Energy Star appliances and low-VOC paints; requiring green building materials and cleaning products; using green paper products throughout the leasing offices; setting up recycling at every site; installing recycled carpets and pads, dual-pane windows, and LED lighting; permanently removing water features and fountains; and replacing grass with drought tolerant ground cover and boulders. In addition, Woodmont multifamily operations has implemented smart valves on irrigation systems that monitor the climate, weather, and soil moisture and adjust irrigation at some of its properties.
The company actively markets the CSP credential and prominently displays the CSP designation in all leasing offices. Embedding the CSP credential in marketing materials initiates discussions with prospective tenants, especially in drought-stricken California. “That has become more important, especially with the younger generation,” says Bosshard, who oversees Woodmont’s designation. Woodmont has certified 36 properties and has 13 in progress. The CSP, a relatively new credential, initially required a minimum of 50 units for certification, but IREM has lowered that minimum to 25.
Property managers may already have some of the CSP measures in place, says Bosshard, and with additional focus, properties may qualify for the credential. “There is value in being able to market the credential,” Bosshard says.
“All of the building certifications have brand identity with institutional owners, who are very cognizant of energy efficiencies and corporate stewardship,” says Scott M. Pritchett, cpm, president of commercial operations for Woodmont Real Estate Services.
Currently, Woodmont has one LEED-certified office building, and pending one more lease, a second office property will meet the occupancy standard to file for the CSP certification; several other properties are under review for the CSP. Certification is becoming more important in the office tenant’s checklist, says Pritchett, which he attributes to increased scrutiny of public companies. The question that's on the upper end of many checklists, he says: “Is the building LEED-certified by the Green Building Council?” Pritchett has taken existing buildings through LEED Basic and LEED Silver certification and describes the process as “definitely achievable.”
In a July 2021 survey of NAR commercial members, 69% said promoting energy efficiency in listings was very or somewhat valuable. Luckily, the supply and array of green products—wallboard, carpeting, flooring—is the best it’s ever been for those willing to pay the slight premium, observes Pritchett. In the California Bay Area, solar-paneled covered parking is gaining traction. This feature appeals to suburban office parks that don’t have a parking garage but have a big energy draw. “You provide a nice benefit to tenants, and the owner can reduce the energy footprint of the buildings.” Studies also show that buildings with green features appraise for a premium over traditional properties, so the slight premium up front on materials pays off.
In addition, “buildings are getting smarter,” notes David Eldridge Jr., an associate with Grumman/Butkus Associates and a Green Globes assessor for a decade. Specifically, the pandemic has brought a surge of technologies focused on monitoring building performance and, especially airflow, to reduce costs and provide healthier spaces.
BrainBox AI, for example, is a Montreal-based company that’s developed artificial intelligence technology to boost the energy efficiency of buildings. The company’s autonomous cloud-based Al overlays existing HVAC systems without disrupting tenants. A control box studies a building’s usage for six to eight weeks to learn and establish a profile, then optimizes air flow. A building’s data is visible on a dashboard and can be monitored, says Sam Ramadori, president of BrainBox AI, and air flow can be adjusted zone by zone for downtime, reduced occupancy, and degradation. The company launched in 2019 and has a presence in schools, offices, hotels, and retail spaces in approximately 285 properties in 17 countries. In 2021, BrainBox AI added an online energy savings calculator, based on square footage and building type.
According to a case study provided by BrainBox AI, when the application was installed in Toronto-based GWL Realty Advisors’ 300,000-square-foot commercial office tower and 500,000-square-foot multiresidential building, GWL realized an energy savings on HVAC equipment of 29% and 25%, respectively, after only a few months.
Drive the Conversation
There's no one-size-fits-all solution to reducing a building's carbon footprint, but the options—certifications, building products, technologies, and strategies—are robust, and the demand is real. If you’re not driving the conversations around ESG and energy efficiency, your clients will.