2 THE BROKER’S ROLE IN SUSTAINABLE COMMERCIAL PROPERTY

Slide header copyIn This Chapter

> Filtering for most reliable sources of information

> Providing relevant market details> Knowing issues specific to site> Counseling on benefit and risk of

sustainability cost

1-12-1

Slide header copyIn This Chapter (cont.)

2-2

> Facilitating green leasing> Analyzing client’s needs> Educating clients re ongoing

nature of sustainability

Slide header copyFiltering for Reliable Information

1-12-3

> Tasks of real estate professionals include: Educating clients on reliable

information sources Taking objective stance to

sustainability/green claims

Slide header copyQuestions to Ask

2-4

> “Certified” sustainable/green building or space or product Certified by whom? Rating/standard/certification

developed by independent, open process?

> High-efficiency product/feature Independent research showing it

delivers efficiency that it claims?

Slide header copyMarket Details

1-12-5

> Green tenants, green buildings/features, and estimated absorption

> Aspects of green philosophy that are represented in your area

> Perceived value of sustainability in the community

Slide header copySources of Market Information

2-6

> LoopNet> CoStar MLS> USGBC Web site> Local companies that support

sustainability education> Other sectors in the market that

promote sustainability

Slide header copyIssues Specific to the Site

1-12-7

> Local climate influences> Availability of density bonuses> The local regulatory environment

Federal, state, and municipal government regulations, (codes), mandates, land use regulations, environmental inspection, and other requirements

Slide header copyLocal Incentives

2-8

> Greater density allowance> Lowering of impact fees> Fast track and streamlined permitting> Reduced lot size and parking

requirements> Cost avoidance of transportation fees,

water and electric> Tax increment financing (TIF)

Slide header copyGreen Leasing

1-12-9

> A “green lease” addresses sustainability through: Rent structure Provisions on tenant improvements Statements of green principles and

policies of environmental management> Rent structure impacts motivation for

reducing energy and resource cost

Slide header copyNegotiating Green Leasing

2-10

> Tenant: Short term: may be looking for finished

commercial interior, with evidence of lowered CAM costs/ lowered submetered utilities if net lease

Long term: may be reviewing TI budgets for commercial interior retrofit/lowered utility costs

Slide header copyNegotiating Green Leasing (cont.)

1-12-11

> Property manager/landlord: May not prioritize retrofit with net

leases or modified gross lease with expense stop

May seek to amortize capital cost to tenants

Slide header copyGreen Leasing Provisions

2-12

> Building certifications/ratings objectives

> Alternative transportation provisions

> Water use/fixture provisions

> Lighting controls provisions

> Building commissioning provisions

> Energy optimization plans

> Maintenance and staff training provision

Slide header copyIntegrated Design Teams

1-12-13

> Developers> Architects> Contractors> Landscape architects> Structural engineers> Mechanical engineers

> Electrical engineers> Acoustical designers> Lighting designers> Property managers> Maintenance engineers> Other real estate

professionals

Slide header copyTeam Building for Planning Green Projects

2-14

> Architect> Engineer> Commissioning agent (CxA)> LEED certification facilitator (if

certification is client’s goal)> Energy auditor/energy modeling

specialist

Slide header copyClient Types

1-12-15

> Owner-investor> Owner-user> Speculative developer> Tenant> Property manager> Public sector> Institutional

Slide header copyEstablishing Trust

2-16

> Real estate professional builds trust by: Commitment to continuing education

on sustainability Approach that matches clients’ needs

to best market opportunities Objectivity in discussing costs and

benefits

Slide header copyThe Counseling Session

1-12-17

> Steps include: Determining client’s priorities and

preferences Discovering cost threshold Identifying location preferences Helping analyze green features Discussing commissioning Identifying impact to O&M Employee/tenant education

Slide header copyExercise: Working with Clients

2-18

> Read situation and list types of information you would need to work with client to arrive at best decision.