SUSTAINABLE REAL ESTATE MANAGEMENT
The built environment comprises 65% of electricity consumption, 39% of greenhouse gases produced, 30% of waste generated, and 12% of potable water consumption in the U.S., representing a huge portion of the components necessary to manage our environmental impact. New building construction corresponds to less than two percent of the existing building stock, illustrating not only the importance of existing buildings, but also the magnitude of the potential benefits resulting from the application of sustainable practices and technologies.
The real estate industry has an opportunity to play a key role in these changes. Through operational modifications, retrofits of existing equipment, and the installation of more efficient technologies, real estate practitioners can address their buildings’ impact through multiple means. Opportunities can be found within and across diverse building types.
Commercial. Office buildings continue to be large consumers of energy and water resources; additionally, they produce mass amounts of waste (mainly in the form of office paper). However, at least a third of this energy is wasted or used inefficiently; nearly a third of the water consumption can be saved through the use of low-cost efficiency measures. Since the majority of waste from office buildings is recyclable and/or reusable, there is a multitude of options available to reduce the environmental footprint and capture financial savings within the commercial building sector.
Multi-family. Although this segment of the market is relatively new in addressing their environmental impacts, multifamily communities stand to benefit greatly from the incorporation of sustainability measures. There is tremendous opportunity for saving energy, water, and reducing waste at multifamily properties – five to twenty percent energy savings can be captured through simple changes in operations and maintenance. As conscientious tenants, and prospective residents, take more of an interest in environmental concerns, property managers should view these measures as value-added enhancements to their properties.
Industrial, Retail, & Hospitality. As there is increased need for environmental performance in other segments of the real estate industry, properties in industrial, retail, and hospitality sectors will have to consider the incorporation of sustainability programs. This shift towards sustainable practices has already gained momentum, as retail chains and hotels, such as Whole Foods and Marriott, have started improving their facilities to meet this new standard.
Sustainable Real Estate Management is the largest area that JDM serves.
CORPORATE SUSTAINABILITY
It is a market imperative that companies not only understand their environmental footprints but also craft effective solutions to address them. Equally important is the successful integration of these strategies into all aspects of the business, rather than merely as an addition to current practices. The first step in this process is the creation of a sustainability plan that is supported at all levels of your organization. From the boardroom to the boiler room, a company must have commitment from all levels to enact the necessary fundamental changes to its business practices.
The benefits of incorporating sustainability into your organization are lasting and self-serving, as corporate sustainability, at its heart, is an increase in the overall efficiency of your organization. As a result, you will see decreased costs, increased returns, and less overall environmental impact from your organization’s activities.
More a journey than a destination, sustainability is a constant improvement in the way you do business, rather than a set end-point at which your greatest potential is reached. Well-crafted sustainability policies, internal and external communication strategies, and continued progress assessment will ensure that corporate sustainability is a clear and visible value in your organization, bringing with it numerous financial and environmental benefits.
RENEWABLE ENERGY AND ENERGY EFFICIENCY
For most organizations, the largest environmental impact results from energy use. Consequently, this is also the area in which the largest opportunity for reductions and improvements can be found. With regards to energy demand, organizations can increase energy efficiency through low-cost methods for achieving reductions or by capturing the “low-hanging fruit.” These often involve making changes in operational and maintenance practices, or retrofitting lighting or HVAC equipment.
Changes in energy supply can involve more of an investment, but can also yield large energy and financial savings over time. Alternative energy sources can be utilized through the purchase of actual systems for on-site installation, or through the purchase of renewable energy certificates (RECs). Though RECs are not as noticeable as a building’s solar system; they will decrease the use of carbon intensive energy sources, reduce your environmental footprint, and will generally be less expensive than solar technology.
Utilizing both energy demand and supply approaches to reducing your energy use from “dirty” sources will bring significant value added to your business, and will protect your organization from volatile utility prices. This can lead to lower overall energy costs and an increased competitive advantage within your market.
WATER USE EFFICIENCY
As can be seen in the Western and Southeastern U.S., water is becoming an increasingly scarce commodity and, after energy, the next dominant issue. Nationwide water utility prices have risen by an average of 27% over the past five years, and will continue to rise as supplies become more limited. As a result, organizations need better water-use management practices, with the goal of creating a buffer from these rising prices through reductions in overall water intake. Water use is no longer solely an environmental issue; it has become a business issue.
Many options are available to reduce water use and increase the equipment efficiency. Changes in operational and maintenance procedures or the replacement of current fixtures with water-saving versions can curb water use significantly without demanding a large investment. Lower cost measures such as these will allow organizations to capture savings for reinvestment into larger projects, such as equipment replacements or the integration of “smart” water use technologies
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Water saving strategies will increase building environmental performance, lengthen the life of plumbing infrastructure, and translate into dollar savings and an improved bottom line.
MATERIALS AND WASTE REDUCTION
Presently, 136 million tons of trash comes from buildings annually in the United States; and 30% of raw materials used goes toward the construction of buildings. Individually, we generate approximately 4.5 lbs of trash daily; for the entire U.S., over 91,000 football fields could be filled 6 ft. deep with municipal solid waste. We demand and dispose of a huge amount of materials; however, this can be trimmed down considerably with the right strategies.
An effective material and waste reduction strategy addresses not only what goes into a building, but also what comes out. Incorporating recycled or reused materials into the construction of buildings, along with the use of deconstruction techniques for material recovery, can greatly decrease the use of virgin materials in our buildings.
Smart purchasing and waste management practices can serve to lower the amount of products we use and the amount of materials we discard dramatically. These strategies tend not to demand heavy investment; rather, they are comprised largely of changes in behavior. By designing a plan that facilitates items such as recycling, composting, and smart purchasing practices for your organization (residents, tenants, and employees), reducing the wastefulness of your property or business can become a simple effort.
A well-crafted waste management plan can save money, reduce environmental impacts, and benefit any property by having less on-site waste…something all tenants can get behind.
