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On an ordinary day, George Dotzler may deal with wind speeds equivalent to a Category 5 hurricane, torrential rains akin to a monsoon and seismic shifts that feel like an earthquake. Rounding out the day could involve a heat wave and an arctic blast.

Mr. Dotzler, 58, is the director of operations for the Construction Research Laboratory, where builders, developers and architects go to test the durability and stability of glass building facades, called curtain walls. Located at what looks like an abandoned airfield in Miami, the lab has 38 sealed test chambers and all the equipment to replicate the forces of nature.

“It’s like ‘Mad Max’ here,” Dotzler said, referencing the 1979 movie’s dystopian landscape.

A mock-up of a facade at the testing lab.(Photo Credit: Scott McIntyre for The Wall Street Journal)

With skyscrapers sprouting up around the world, demand for structural testing is strong. Big-name architects are increasingly designing towers with quirky shapes, and developers must go to greater lengths to ensure that the unusual curves and crannies can withstand even the harshest conditions. While some testing is required by municipal law, most developers are going the extra mile, since they can’t afford to start mending ruptures and leaks once their buildings are up. Only three or four facilities in the U.S. have experience testing super-tall structures, Mr. Dotzler estimated.

In recent years, the company has been testing 53W53, a 1,050-foot-tall tower designed by architect Jean Nouvel that is under construction adjacent to the Museum of Modern Art in midtown Manhattan. Scheduled for completion in 2019, the 82-story building will have 145 luxury condominiums. The developers—a partnership between Houston-based Hines, Singapore-based Pontiac Land Group and Goldman Sachs —decided on a tapered structure with criss-cross structural framing on the exterior.

“Everything in this curtain wall is bespoke, custom-made for this building,” said David Penick, managing director at Hines. “Every piece of aluminum. Nothing is off the shelf.”

The developers had 6,000 panels of triple-paned glass custom-made by German manufacturer Interpane. Some were incorporated into two mock-ups, which typically include the trickiest, most vulnerable elements of the building, such as the corners, joints and vents, what Mr. Dotzler calls a “Frankenstein arrangement.”

“It’s like a doctor wanting to test a human being by putting together a mock-up with one ear, one nose and one elbow,” Dotzler said.

The mock-up went through a litany of tests. In one of the chambers, both inward and outward pressure was exerted on the glass as part of a water-infiltration test to see how much the design could sustain without cracking or leaking. The pressure was equivalent to about 77.5 mph winds.

Later, a Pratt & Whitney R-2800 aircraft engine with 13-foot propellers was positioned in front of the mock-up. Mr. Dotzler turned on the water spray rack and cranked up the speed of the generator to simulate a dynamic wind load—an effect that’s similar to a hurricane. Researchers then attached a hydraulics system to the structure of the building and shoved segments right and left in an attempt to determine whether they’d be secure in case of an earthquake or wind drift.

“Some of the pressures exerted on these facades far exceed what is likely to occur naturally,” Dotzler said. “If the facade survives these loads, it’s been well-designed and is sufficiently strong. The testing took several weeks and cost about $150,000. No major changes to the facade were made as a result.”

National Certified Testing Laboratories, based in York, Pa., tested a mock-up of an 88-story luxury condo tower scheduled for completion next year in downtown Manhattan. The building, called 125 Greenwich Street, was designed by Rafael Viñoly and features rounded corners.

Steven Della Salla, a managing partner at Bizzi & Partners Development, said his company paid about $210,000 to create the mock-up of 125 Greenwich Street, and another $163,000 for the tests themselves.

Mr. Dotzler said his company also is popular with Hollywood filmmakers, who like to shoot the facility’s post-apocalyptic aesthetic.

“We’ve hosted a couple of episodes of ‘Graceland’ and ‘Burn Notice,’ ” Dotzler said. “But we try to have them only after hours or on weekends.”

 

Source: Wall Street Journal

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With 41.6 percent of its office space considered “green,” Miami ranked ninth of 30 markets on the 2015 Green Building Adoption Index, a joint project of CBRE Group, Inc. and Maastricht University.

For the purposes of this report, “green” office space is defined as holding either an EPA ENERGY STAR label, U.S. Green Building Council (USGBC) full-building LEED certification or both. Using square feet as a measure, 41.6% of Miami’s office market is “green” – well above the national average of 38.7%.  Moreover, Miami ranked particularly well in terms of number of buildings considered green – over 17%. By square feet, 21.84% of Miami’s office market has a LEED certification, and over a third of the office market is ENERGY STAR rated.

This is the second year in a row that Miami ranked ninth on the list, behind U.S. cities such as Minneapolis, which led the Green Building Adoption Index’s city ranking for the second consecutive year with 70.4 percent of all office space currently qualified as green (down from 77.0 percent in 2014.)  San Francisco, again in second place, significantly closed the gap and now boasts a 70 percent green market, up from 67.2 percent in 2014. Chicago, at 63.4 percent, was third, while Atlanta (57.8 percent) and Houston (52.9 percent) swapped positions at fourth and fifth. The top 10 cities on the 2014 list all retained a place on the 2015 list.

The study also found that owners of small buildings have an opportunity to differentiate themselves by implementing energy-efficient practices, due to a significant gap between large and small office buildings in achieving sustainability certification. For example, 62.1 percent of office buildings in the U.S. greater than 500,000 square feet are considered green. In contrast, only 4.5 percent of all U.S. office buildings less than 100,000 square feet qualified as green.

“Our 2015 study confirmed that green building adoption has been primarily a big building, first-tier city phenomenon,” said David Pogue, CBRE’s global director of corporate responsibility. “It would appear that many smaller buildings in the majority of large markets still have an opportunity to be ‘best in class’ among their peer set by achieving these certifications.”

Executed in close collaboration with the USGBC and CBRE Research, this is the second release of the annual Green Building Adoption Index. Based on a rigorous methodology, the Index shows the growth of ENERGY STAR- and LEED-certified space for the 30 largest U.S. office markets, both in aggregate and in individual markets, over the previous 10 years.

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Sources: CRE-sources

Ask Anthony Malkin about LEED and he’ll tell you how he really feels.

The chief executive officer of Empire State Realty Trust thinks the clean air certification for buildings (officially Leadership in Energy and Environmental Design) is a good starting point, but it doesn’t do much for tenants or landlords. Instead, it’s all about keeping energy costs low in buildings with new technologies as opposed to a points system for miniscule things.

“We have a very good adviser who said if you don’t get LEED, it’s going to be very difficult for you to criticize it. So we did,” Mr. Malkin said as a panelist at Commercial Observer’s “Upgrade New York” breakfast last week. “The concept that you get a point for harvesting bamboo in Indonesia, putting it on a boat that stops by Fiji and picks up a bottle of water…Brings it to a port in L.A., which then takes it in a train across the United States and is put on the floor of an office in New York City, and you get a point for that? That’s just freaking absurd.”

His fellow panelists agreed that a new tenant, particularly in the tech sector, wants a building that can keep the energy bills low more than anything. But the strongest comments came from Mr. Malkin, whose revamped his Empire State Building now uses less energy with state-of-the-art measures such as lights that dim when the room is empty or is getting more sunlight, and elevators that reuse energy from their breaks to power upward elevators.

“This is the most efficient building of its size of any age in the United States that’s occupied,” Mr. Malkin said. “We have an energy intensity unit, or energy unit intensity of 72 in this building. The median in New York City is 218. It is no colder, it’s no hotter. It’s no darker. There are no fewer elevators.”

His tenants might not even know the building is LEED certified, which judges how environmentally friendly it is based on the number of points it has for things such as bike racks and emissions. Many technology and emerging companies are more concerned with how much energy a building uses than its ranking on the LEED scale, said co-panelist Sacha Zarba, an executive managing director at CBRE who specializes in tech tenants.

“LEED doesn’t hurt,” said Mr. Zarba, who represented LinkedIn in its leases at the Empire State (it now has 160,000 square feet). “From a tenant perspective, it’s not a box that usually needs to be checked. It’s important to LinkedIn—the energy efficiency and sustainability of a building—but LEED as a word is not.”

View a video of Anthony Malkin, Chief Executive Officer Of Empire State Realty Trust, discussing LEED certification below:

 

Source: Commercial Observer

As you determine ways to make your apartment complex more appealing to tenants, you should pay attention to the latest trends when it comes to outdoor spaces.

More specifically, take note of what the American Society of Landscape Architects found when they conducted their Residential Landscape Architecture Trends survey for 2013. Then consider using these findings to your advantage as you work to improve your property.

Opportunities to Cook and Entertain Outdoors Top the List
A whopping 96% of Americans surveyed said they wanted grills outside. This was closely followed by complete outdoor living spaces, including outdoor kitchens and areas to entertain guests. If your apartment complex does not yet have a built-in barbecue area, or grills at the very least, you might be missing out on tenants who value livable outdoor spaces.

Seating is equally important according to the survey results, so make sure you have tables, chairs, or even basic picnic tables set up around the apartment complex. Installing some fire pits or outdoor fireplaces may also be the key to satisfying your tenants, according to 97% of the survey respondents.

Sustainability Matters When It Comes to Apartment Landscaping
More people care about sustainable outdoor spaces than you might have thought, and that includes landscaping. In fact, about 94% of people surveyed said they liked low-maintenance landscapes. Of course, in an apartment complex, the amount of maintenance might not directly affect the tenants, but it may affect your landscaping bill. Choosing plants that are native to the area can reduce the amount of work required to keep them healthy, and this move would please 87% of the survey respondents, too.

Nearly as many people also like the idea of having gardens that grow fruits and vegetables. In fact, more apartment landscaping plans these days are featuring gardens as a major part of their sustainable outdoor spaces. You can offer one or even a few courtyard gardens, or even window boxes for tenants to grow their own food. Either way, this apartment landscaping can improve the quality of life in your complex. It often even increases the length of each tenant’s stay, since many people grow quite attached to their gardens after putting in hours of work to grow food.

Lighting and Installed Seating Are Also on the Minds of Many Tenants
About 95% of those surveyed claimed lighting was important to them in an outdoor space. After all, this makes it possible for tenants to cook dinner outside as the sun goes down or even simply feel safer taking walks at night. Considering how much people now value sustainable outdoor spaces, you should be sure to use energy-efficient or even solar lighting with timers and sensors to help keep light pollution to a minimum.

Another common desire for outdoor space is the presence of installed seating. This ranges from simple ledges and boulders to installed benches. You can install what you think would look best in your apartment complex, again paying attention to sustainability by using eco-friendly materials that can stand up to your city’s climate for years.

Outdoor Recreation Amenities Are Appreciated in Modern Apartments
You might be surprised to find that outdoor recreation amenities, such as pools and tennis courts, garnered only 76% of the vote in this survey. In fact, more people – about 82% – thought having weatherized chairs outside was more important. That means the ability to cook outside and sit comfortably, perhaps in front of a fire pit, is more important to many Americans than access to a pool.

Of course, many apartment complexes are still expected to have such fun amenities, especially in warmer areas. However, apparently you should focus on getting grills and seating set up first if your apartment landscaping is missing these features. After all, sustainable outdoor spaces are of great importance to many tenants.

 

Source: Green Property Management

For the first time, shopping centers have an individualized way to benchmark energy use.

Thanks to the new Property Efficiency Scorecard recently launched at the ICSC’s Retail Green conference, property owners can input data online on energy use, water consumption, recycling and waste and overall green operating practices.  Enter data from one center or all of the centers in a portfolio and compare it with others in a portfolio or to centers with similar characteristics.

Eventually, the goal is for the Scorecard to have ranking similar to an Energy Star 0 to 100 rating, says Will Teichman, director of sustainability for Kimco Realty, one of the partners that helped craft the tool. For now, in each category, property owners can receive a score that is similar to the energy-use intensity (EUI) score, which measures kilowatt use per sq. ft. per year. The program will offer basic suggestions on how to save energy, based on the benchmarking results, but the real work comes after benchmarking. “What it does is give you insight that allows you to dig deeper,” says Teichman, who adds that he expects all of Kimco’s retail properties to be benchmarking with the program by January.

Benchmarking is important because property owners can’t start saving money on energy unless they know how much they are using, he explains; however, benchmarking also has tangible benefits that extend well beyond energy efficiency. “Although some argue this may correlate to higher rents over the long term, we view it as more of a competitiveness issue,” says Teichman. “Sustainability is an expectation of leading retailers and the implementation of these measures lowers one of our tenants’ largest occupancy costs.”

Sustainability is also becoming an increasingly important priority to investors, Teichman says. “Particularly with large institutional shareholders—they are requesting greater transparency into the sustainability performance of real estate portfolios, and view sustainability as an opportunity to improve property performance and mitigate risks,” he says. “Growth in disclosure forums such as the Global Real Estate Sustainability Benchmark (GRESB) is a leading indicator of investor interest in sustainability.”

The information on each center is not public, so property owners need to know how their buildings stack up against centers in similar geographic areas, says Rudolph E. Milian, ICSC’s senior staff vice president for professional development services. Enrollment begins in January. “We definitely want to have at least 1,000 properties in the system in 2014, and I think we can exceed that,” Milian says. Payment is based on the number of properties benchmarked: one to 10 properties costs $400 per property annually, and 51 to 100 centers costs $255 per property per year. The fee for benchmarking more than 101 properties is a flat $30,000 fee annually.

Joyce Mihalik, vice president of energy services for Forest City Enterprises, is another one of the Scorecard’s early adopters and creators. About 75 percent of Forest City’s retail portfolio is already entered into the Scorecard system. She says her company has an internal benchmarking tool used for its properties, and she expects to use the ICSC Scorecard in a similar way. “We use it as a prioritization tool, for budget and forecasting purposes, where to do upgrades and interventions,” Mihalik says. “This is the way we know that here is a property where we have to go back and spend the day with the property manager to see what is really happening out there. “Are they really a poor performer? Or was the system on over-ride for three months because that tenant needed extra hours?” she says. “The data is only half the story. Then you have to do the homework.”

It is crucial for the shopping center sector to have its own benchmarking metric because that property type is so different from the rest of the commercial real estate sector, Mihalik says. While Energy Star and Portfolio Manager are widely known and well regarded, she adds, they don’t take into account the unique nature of the shopping center market. Although Mihalik says Energy Star has an important place, she notes that one of the frequent criticisms of the Portfolio Manager program in the fact that the data used for comparing commercial properties is from 2003. “This Scorecard is going to allow you to compare yourself to a live dataset,” she says. Energy Star has come under criticism from the multifamily sector for not having a rating designed for the quirks of that sector, and a score targeted for multifamily is expected in 2014. No other commercial real estate sector has created its own benchmarking system like the ICSC Scorecard.

The Scorecard also allows users to upload data only once and then to export it into other formats, such as Portfolio Manager or GRESB, in order to meet local laws or requests from tenants or investors. “I don’t want to have to key in my data a hundred times in different places,” Mihalik says. “I’d rather have our energy-efficiency team being sent out to do an energy audit or develop sustainable policy.” Mihalik says she doesn’t see ICSC’s Scorecard as being “in competition with other reporting standards.” Instead, she says she appreciates it as “an added feature and an added tool.”

 

Source: National Real Estate Investor

 

Facing pressure to manage costs, risks and energy consumption, commercial building owners and investors are exploring how smart building technologies can help a company’s triple bottom line—people, planet, profits.

Five key trends are making smart buildings a “no-brainer” for commercial property owners and investors, according to Jones Lang LaSalle’s latest report, The Changing Face of Smart Buildings: The Op-Ex Advantage. “Commercial and public property owners are looking to smart building technology to boost operational efficiency, achieve energy savings, improve capital planning and reduce their carbon footprints,” says Dan Probst, JLL’s chairman of Energy and Sustainability Services. “These advantages, combined with tenant preferences for smart building features, provide a competitive edge for owners and investors.”

Five Reasons For Smart Building Investment

The report, which details the landscape for smart building technology, identifies five major trends:

1. Rapid Return On Investment
Smart building technology investments typically pay for themselves within one or two years by delivering energy savings and other operational efficiencies. Also driving the fast payback is the low cost of automated building technology, which has fallen as adaptation has increased. For example, intelligent lighting components that cost $120 four years ago today sell for just $50. Procter & Gamble’s building management pilot program, for example, generated a positive return on investment in just three months.

2. Operating-Expense Advantage
Relative to other energy-related building upgrades, smart building technology requires little upfront capital expenditure (cap-ex), while delivering significantly reduced operational expenditures (op-ex). Using automated systems, smart buildings generally cost less to operate  than buildings operating solely on legacy systems, therefore offering a long-term op-ex advantage. By combining smart building systems and data analytics with facilities management, a smart building management system can detect and resolve building issues before equipment failures and capital expenditures ensue. Additionally, operational and energy savings begin shortly after the smart building management system is implemented.

3. Marketing Mileage
As reported in JLL’s October 2012 “Global Sustainability Perspective,” numerous studies and surveys have demonstrated that tenants and their advisors increasingly expect smart building features such as zoned HVAC, sophisticated equipment maintenance alert systems, advanced security systems and “green” buildings. Like a new lobby or elevator bank, an improvement in sustainability makes an office building more desirable to tenants. These benefits can justify collecting higher rent and can increase competitive advantage and occupancy rates. And when the building is sold, sustainable investments can be recouped in an increased sales price. In fact, a 2011 study by Eichholtz, Kok and Quigley indicated the premium for LEED-certified or ENERGY STAR-labeled buildings is approximately 13%.

4. Energy Savings
Smart building technology can generate energy savings of 8% to 15% annually almost immediately after deployment, with the potential for incremental improvements over time. A 2012 report by the Rockefeller Foundation and Deutsche Bank Group’s DB Climate Change Advisors estimates that $289 billion in building efficiency investment would produce savings in excess of $1 trillion in the US alone, with every dollar invested in energy efficiency producing three dollars of operational savings.

5. Improved Corporate Social Responsibility Profile
Redirecting energy spend to building efficiency has allowed some corporate decision-makers to gain the reputational advantages of doing the right thing by the environment while also gaining significant performance and productivity improvements. Another benefit is a smart building system’s ability to measure and report greenhouse gas emissions. Some owners feed building emissions data to multiple benchmarking organizations, such as Greenprint and GRESB, as well as to Ceres and similar third-party reporting organizations, and smart systems can roll up the information from across a portfolio.

 

Source: GlobeSt