Protecting the environment is important to San Diegans. Businesses are always looking for ways to reduce their environmental impact, and are looking to their property managers to provide sustainable spaces to improve both the health and productivity of their employees, as well as their bottom line. Commercial property management firms, then, should focus on providing those sustainable spaces, or “going green,” not only to satisfy tenants, but to have a positive impact on revenues.
Increasing Environmental Requirements
Over the past 25 years, more and more buildings have been built or retrofitted to achieve LEED (Leadership in Energy and Environmental Design) certification, which was developed by the U.S. Green Building Council and is recognized worldwide to indicate implementation of sustainable construction.
Other recognized programs are the Energy Star Certified Building Program, a joint program of the EPA and the Department of Energy; the Green Globes environmental assessment rating tool, maintained by the Green Building Initiative; and the Global Real Estate Sustainability Benchmark. It is especially important that property management in San Diego pursue at least one of these certifications or ratings, since buildings can account for about one-third of a city’s carbon dioxide emissions.
Today tenants, whether building their own facility or occupying an existing one, have shown increased interest in their property manager providing sustainable building practices. Commercial property management firms can do so by leveraging technology and installing connected or “smart” devices to control lighting, temperature, water usage, etc.
Recent studies have shown that mortgage holders on buildings that are LEED-certified or Energy Star-labeled are 30 percent less likely to default, and that implementing the recommendations of LEED-related audits can show a nearly 60 percent return on investment. To offer the best property management in San Diego, then, is to take advantage of the link between sustainability and improved financial performance.
One way to do so is by use of “green” leases, sometimes referred to as energy efficient leases or aligned leases, because they align the financial and environmental interests of building owners and tenants in conserving resources and ensuring efficient operation of the building. This alignment can result in a reduction of capitalization rates and operating costs and an increase in property values.
To that end, the best property management in San Diego will be that which implements strategies and policies geared toward sustainable working environments for tenants and their employees, resulting in improved financial performance for all parties involved.