Cushman Wakefield Energy Sustainability Taskforce Newsletter August 2011

Cushman & Wakefield’s (C&W) Energy and Sustainability Mission: As a world leader in real estate services, C&W provides clients with the highest quality and most cost-effective energy and sustainability solutions. This is accomplished by combining best practices, technical expertise, and market knowledge to enhance the overall performance and value of our clients’ assets.

August 2011 Edition

Top NewsC&W Releases the 2011 National Green Building Opportunity IndexC&W, in collaboration with the Northwest Energy Efficiency Alliance’s (NEEA) BetterBricks initiative, released the 2011 Green Building Opportunity Index (GBOI). The up-dated GBOI focuses on the primary factors that influence the successful development, retrofitting, leasing, and sales of investment-grade, green office buildings in the 30 larg-est U.S. Central Business Districts (CBD).

The GBOI remains the only assessment tool to provide weighted com parisons of top U.S. of-fice markets on the basis of both real estate funda-mentals and green char acteristics. It compares a market’s relative position to its peers in six categories: Office Market Conditions,

Investment Outlook, Green Adoption & Implementation, Local Mandates & Incentives, State Energy Initiatives, and Green Culture. As a tool to examine the overall climate for green building, the Index assists a broad spectrum of professionals in determining where favor-able conditions exist for green building activity, and aids investment and policy decisions.

In addition to the GBOI, C&W’s Valuation & Advisory, Research, and Corporate Occupier & Investor Services (CIS) groups are partnering to produce Profile Reports for the 30 markets analyzed. Each report details the local trends, transactions, and recent market shifts that impact sustainability in commercial office buildings. Ideal for investors, developers, asset managers, appraisers, and public policy officials, the Profile Reports provide insight into “on the street” realities and the competitive landscape that affects property decisions.

The GBOI and New York Midtown and Seattle Profile Reports–two of the top ten 2011 markets listed at right–are available for download at: http://tinyurl.com/5uymbbp

Profile Reports for the other eight top markets will be avail-able in September and can be ordered on an individual or subscription basis. Additional markets will be added based on client demand.

For more information, contact Theddi Wright Chappell, National Practice leader of C&W’s Green Advisory Practice in Valuation & Advisory at [email protected].

2011 Green BuildinG OppOrtunity index: National Overview: Central Business Districts | Page 1

Boston —Downtown N.Y. —

Portland —Seattle —

Oakland —Denver —

San Francisco —Midtown N.Y. —

Washington, D.C. —Midtown South N.Y. —

Los Angeles —

San Diego —Chicago —

Orange County —Austin —

Houston —Dallas —

Minneapolis —Philadelphia —

Charlotte —Baltimore —

Miami —Pittsburgh —

Indianapolis —Columbus —

Atlanta —Phoenix —

Cleveland —Detroit —

Kansas City —

0 20 40 60 80 100

Central Business distriCts: Green Building Opportunity Index

2011 Green Building Opportunity Index©

natiOnal Overview: OffICe Markets

The 2011 Green Building Opportunity Index remains the first office market assessment tool to provide weighted comparisons of top U.S. office markets on the basis of both real estate fundamentals and green investment considerations. As in the inaugural 2010 version, the Index compares each market’s relative position to its peers in six categories: Office Market Conditions, Investment Outlook, Green Adoption & Implementation, Mandates & Incentives, State Energy Initiatives and Green Culture. For 2011, the Index has been enhanced by adding five new markets and refining the methodology and data inputs – yielding a more comprehensive view into the factors that influence successful development, retro-fitting, leasing and sales of investment grade green office buildings.

san francisco ............... 100.0Midtown N.Y. .................. 88.4Washington, D.C. ........... 83.7Midtown South N.Y. ........ 82.0Los angeles .................... 79.2Boston ............................ 77.2

Downtown N.Y. ............... 76.3Portland .......................... 75.6seattle ............................ 74.2Oakland .......................... 73.4Denver ............................ 69.7san Diego ....................... 69.3

Chicago .......................... 68.6Orange County ............... 68.1austin ............................. 65.4Houston .......................... 63.8Dallas .............................. 62.9Minneapolis .................... 62.4

Philadelphia .................... 60.6Charlotte ......................... 55.7Baltimore ........................ 54.4Miami .............................. 54.1Pittsburgh ....................... 53.3Indianapolis .................... 51.1

Columbus ....................... 50.0atlanta ............................ 48.9Phoenix ........................... 46.6Cleveland ........................ 46.2Detroit ............................. 41.4kansas City .................... 36.3

Office Market ConditionsInvestment OutlookGreen Adoption & ImplementationMandates & IncentivesState Energy InitiativesGreen Culture

UPDATeD FOr 2011

Top 10 CBD from the 2011 GBOI 1. San Francisco 2. Midtown NY3. Washington, D.C.4. Midtown South NY5. Los Angeles6. Boston7. Downtown NY8. Portland9. Seattle10. Oakland

T A S K F O R C E N E W S L E T T E R&

EnergySustainability

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Awards and Achievements2011 C&W Environmental Challenge WinnersOn Earth Day 2011, John Santora, CEO of CIS, announced the winners of the second annual C&W Environmental Challenge, our award-winning, innovative program that encourages superior environmental efficiency in our man-aged portfolio. Awards were given in three categories: (1) Greatest Overall Improvement; (2) Environmental Improvement – for properties that made greatest percentage gains in 2010 over the 2009 baseline for energy, water, and waste reductions; and (3) High Performance – for the properties that demonstrated the highest ENERGY STAR rating, the lowest indoor water consumption, the highest diversion rate, and are LEED certified for Existing Buildings. Each winner is a leader in promoting sustainable property operations and demonstrating how C&W adds value to our clients’ properties.

Grand Prize for Greatest Overall Improvement

Adobe Systems Incorporated 321 Park Avenue, San Jose, CA, managed by George Denise

Environmental Improvement

Winner: One North Broadway, White Plains, NY, owned by Heyman Properties, LLC., managed by Peter Howard

First runner-up: MetLife property at 1301 Dove Street, Newport Beach, managed by Gary Mull

Second runner-up: JP Morgan/Acquiport Unicorn, Inc. property at 300 Unicorn Park Drive, Woburn, MA., managed by Carol Macleod

High Performance

Winner: MetLife property at 5950 Airport Road, Oriskany, NY, managed by Ron Porter

First runner-up: Investors, LLC property at 555 17th Street, Denver, CO, managed by Patrick Finé

Second runner-up: Metro Holdings, LP property at 300 Prairie Center Drive, Eden Prairie, MN., managed by Beth Borich

C&W Participates in USGBC Launch of Volume Certification Program for Operations & MaintenanceAt the BOMA International Conference on June 27th, USGBC held a press conference to announce the launch of its LEED Volume Certification Program for Operations & Maintenance. As the only real estate services provider to participate in the pilot program (certifying 8 million sf at 18 properties in January 2010), C&W was invited to participate and our own John Scott, Director of Property Management, spoke on C&W’s behalf.

C&W also acted as a program reviewer for the formal Volume Certification Program. USGBC’s LEED Volume Program is for organizations planning to certify a large number of design and construction projects or existing buildings. It works by establishing verifiable guidelines that streamline the certification process without compromising LEED’s rigorous standards. This new program dramatically increases the efficiency of LEED certi-fication and lowers the associated costs. A case study on C&W’s success in the pilot program can be found here: www.usgbc.org/ShowFile.aspx?DocumentID=9566.

C&W Environmental Challenge Wins AwardCoreNet Global honored the C&W Environmental Challenge by naming the program winner of its 2011 Sustainable Leadership and Design Award at the CoreNet Global Summit in Chicago in May 2011. C&W is proud that the program was recognized for its contribution to improving energy efficiency in the real estate industry and hopes that it will serve as model for more progress in the coming years.

From left: Ray Dunn, Vice President of Tandus (Sponsor); John Santora, CEO of CIS accepting the award; and Steve Quick, VP & General Manager EMEA for Johnson Controls Inc. (Sponsor)

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2011 CIS Global Best Practices Competition – Sustainability winnerThe winning submission in the Sustainability category in the 2011 C&W CIS Global Best Practices Competition was “Greening the UK Property Management Portfolio” submitted by Kevin Sensier, Peter Drabble, Julie Hogarth, and Ian Davies. The team’s successful implementation of the BREEAM In-Use standard across the UK Property Management Portfolio has resulted in more than 200 draft assessment surveys completed to date. These surveys inform property managers of what steps to take to improve efficiencies, lower costs, and become more environmentally-sensitive. The runner-up was “Using Current Systems for Combined Heat & Power,” submitted by Jose Osinde, the Chief Engineer at 505 Park Avenue in New York, which described innovative, low-cost methods to improve domestic hot water heating, steam condensate pre-cooling, and condenser water cooling.

BOMA TOBY® Awards winners Metropoint 600 in St. Louis Park, MN, owned by BPG Properties, Ltd., was awarded BOMA’s prestigious The Outstanding Building of the Year® (TOBY®) Award in the Renovated Building category at the June 2011 BOMA International Conference. Metropoint 600 was LEED certified through the C&W pilot Volume Program and has been a top performer in C&W’s Environmental Challenge. The TOBY® Award rec-ognizes properties that exemplify superior building quality and excellence in building management. Two other C&W managed properties received top regional TOBY® awards. The Wells Fargo Home Mortgage Campus in Minneapolis, MN won the Corporate Facility Award in the Midwest Northern Region, and the BAC Colonnade Rotunda in Coral Gables, FL, owned by Deka USA Colannade LLP, won the Historical Building Award in the Southern Region.

C&W’s John Scott Elected to BOMA International Executive CommitteeJohn K. Scott, Florida Director of CIS and co-chair of C&W’s Energy & Sustainability Task Force, was elected to the BOMA International Executive Committee for 2011-2013. The Executive Committee develops the stra-tegic direction and policies for the association, and works with BOMA International officers and executive staff to maximize the effectiveness of the organization.

Metropoint General Manager Kevin Kurpierz, at right, and C&W Portfolio

Manager Julie Samuelson, accept the TOBY® award from Peter Leahy of Kimberly-Clark

Professional, the sponsor of the award.

Project And Property SpotlightTwo properties owned by Deka Immobilien and managed by C&W marked significant achievements.Century Plaza II, a six-story, 101,841 square foot Class A office building located in San Jose, California, earned the LEED Gold for Existing Buildings O&M certification in August 2010. The BAC Colonnade building in Coral Gables, FL achieved the BOMA 360 designation in June 2011. Both properties deployed a number of similar strategies in attaining these achievements, includ-ing retrofitting lighting and water fixtures, improved irrigation systems, and enhanced HVAC and lighting monitoring and control. BAC Colonnade reported $200,000 in electricity cost savings in 2010 through its efforts.

The Mack Cali and Sullivan & Cromwell property at 125 Broad Street in New York City, a 1.3 million square foot commercial office condominium built in 1970, achieved LEED Silver for Existing Buildings O&M certification. The Spitzer Engineering building located at 2001 K Street, NW in Washington D.C. achieved a LEED Gold certification for Existing Buildings. The 210,000 sf multi-tenant building, built in 2001, houses C&W’s Washington DC offices among a number of other tenants. C&W hosted a celebration on July 21st to commemorate the achievement. The Bank of New York Mellon (BNYM) Utica Operation Center earned an ENERGY STAR label with a score of 76 – a great achievement for a data center!Adobe System’s property in Boston earned an ENERGY STAR score of 97 in its first year of operation as a new building. The property is also diverting an impressive 82% of their total solid waste, far beyond the diversion rates of Boston (11%), Waltham (17%), the state of Massachusetts (26%), and the national average (28%).

San Jose Mayor Chuck Reed and Northern California USGBC Executive Director Dan Geiger recognized Century Plaza II’s achievement of LEED Gold at a Plaque Ceremony at the end of April 2011. Spencer McCann, of Real Estate Capital Partners, holds the LEED Gold plaque on behalf of Deka Immobilien.

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Technology NewsTwo notable developments to report courtesy of C&W’s involvement with the Department of Energy’s (DOE) Commercial Real Estate Energy Alliance (CREEA):

DOE to Release Decision Tool to Spur Energy Efficiency InvestmentDOE plans an August 2011 release of its Buildings Performance Database, an energy efficiency investment decision tool that combines financial and data analysis tools with a database of building information. The building data are assembled from more than 40 sources, including utilities across the country and the CBECS data (discussed in the Policy Corner section), and includes commercial, residential, retail, office, industrial, and hotel building energy use and characteristics. The Database allows quick and robust comparison of energy investment decisions against actual data from similar building types, rather than relatively lengthy, expensive single-building projections and analyses in current practice. DOE indicates that it will be a powerful tool designed to align with financial institution assessment methods to spur funding for capital investments in energy and sustainability projects. We anticipate this tool to accelerate the adoption and implementation of larger capital retrofits to improve energy efficiency. C&W’s Task Force will explore how we may benefit from this tool and will share news of its release.

Advanced Roof-top Unit SpecificationsA working group comprised of building owners and operators in the Commercial Building Energy Alliance (CBEA) and industry partners from the commercial, retail, and industry sectors, with support of the DOE, have devel-oped specifications to help speed the introduction of advanced, reliable, energy-efficient, and competitively priced roof-top air conditioner units (RTUs) that meet CBEA member performance requirements. RTUs built to these specs will be as much as 60% more efficient than existing models. The DOE is continuing coordination of an ef-fort to foster demand for these units, thereby enhancing their accessibility. The C&W Sustainability Strategies Team will host an information webinar on these DOE specifications on Wednesday, August 17th at 3pm. Contact [email protected] for more information on the webinar.

Global HighlightsC&W UK a Founding Member of the International Sustainability AllianceIn late 2010, C&W UK helped launch the International Sustainability Alliance (ISA), the only member-owned international sustainability benchmarking organization. The ISA enables C&W properties to measure and benchmark the sustainability performance of both our own and our managed client properties in Europe against thousands of other buildings of all types in the region, using a standard set of sustainability KPIs developed by ISA.

Outstanding Project in ItalyC&W professionals in Italy played an instrumental role in the development of the new 3M Italia

headquarters’ building, winner of the 2011 MIPIM ‘Green Building’ Award. The MIPIM award salutes exemplary projects in six real estate categories, including: Business Centers, Green Buildings, Hotels and Tourism Resorts, Refurbished Office Buildings, Residential Developments and Futura Projects. C&W Italy advised on the entirety of the project, including: sale and

leaseback, relocation, project monitoring of the development, space planning, interior design, and project manage-ment. Sustainability advice was fully integrated across these services.



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Looking Ahead: Calendar Events & Announcements DOE/CBEA webinar: “Financial Incentives for Energy Efficiency in Commercial Buildings” – August 3rd at 3pm ET. Register at: http://www1.eere.energy.gov/buildings/alliances/events_detail.html?event_id=5851

C&W Sustainability webinar on National HVAC Recycling program – August 10th at 1pm ET

C&W Energy & Sustainability Task Force Committee call – August 15th, 4pm ET

C&W Information Webinar on DOE CBEA Roof Top Unit (RTU) and lighting specifications – August 17th at 1pm ET

USGBC Emerging Professionals Meeting at C&W NYC Headquarters, 1290 Avenue of the Americas – September 6th, 6:30-8pm

Greenbuild International Conference and Expo 2011 – October 4-7th, 2011, Toronto, Canada

Institute of Real Estate Management (IREM) Fall Leadership Conference – October 11-15th, San Diego, CA

International Facility Management Association (IFMA) World Workplace 2011 Conference and Expo – October 26-28th, 2011, in Phoenix, AZ

Follow C&W sustainability on our Twitter account: @cushwakegreen

Contact [email protected] for more information on any of these events.

Policy CornerC&W Endorses National Policy ActionsThe fate of the package of energy efficiency-focused legislative measures proposed as the “Better Building Initiatives” by President Barack Obama on February 3, 2011 remains uncertain with the budget-constrained landscape in Congress/Washington, D.C. However, C&W and other building energy efficiency advocates and members of the real estate community have taken action to advance adoption of one important aspect that would benefit the commercial real estate industry – the reform of the Section 179D tax incentive for commercial building energy efficiency. On May 5th, a letter that included C&W endorsement was sent to key Senate offices to support revisions to the 179D tax code law, including: using a building’s baseline energy consumption to gauge improvements instead of restrictive ASHRAE code; linking the incentive to the amount of energy saved; and allowing tenants to access the incentive for making improvements to spaces within a building.

C&W also endorsed a letter to Congress to counter budget cuts that would prevent funding of the current Commercial Building Energy Consumption Survey (CBECS) data collection process. CBECS gathers data on energy use from a statistical sample of buildings every four years, and is the foundation of the ENERGY STAR Program and energy portions of the LEED rating system. These programs are currently using 2003 CBECS data due to statistical errors associated with the 2007 process. This older data does not represent significant energy efficiency and technological progress made in the last decade and therefore does not accurately represent the current state of the industry. The letter was sent to leadership on the Senate and House Appropriations Committees on May 19th.

To obtain copies of these letters or to learn more, contact [email protected]

Incentives for Renewable Energy and Energy Efficiency Projects The Database of State Incentives for Renewables & Energy (DSIRE) (www.dsireusa.org) is a comprehensive source of information on federal, state, local, and utility incentives that promote renewable energy and energy efficiency in the U.S.

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Learn more about C&W’s sustainability initiatives in managed propertiesC&W’s Energy & Sustainability Task ForceC&W’s Energy and Sustainability Task Force focuses on building operations and maintenance issues that optimize energy consumption, water use, and waste reduction while reducing operational costs and enhancing property value. The Task Force is comprised primarily of professionals from C&W’s Corporate Occupier and Investor Services.

For more information, email Task Force Co-Chairs Steven Ring or John Scott at [email protected]

C&W’s Sustainability Strategies TeamC&W’s Sustainability Strategies Team develops and leads the implementation of programs, tools, and resources designed to incorporate environmental best practices that promote the efficient use of natural resources and carbon footprint reduction into facility and property management. The Team manages such programs as C&W’s LEED EB Volume Certification Program and the C&W Environmental Challenge, in addition to leading C&W cor-porate sustainability initiatives.

For more information email Jeffrey Domanski at [email protected]

Learn more about C&W’s Green Advisory PracticeC&W’s Green Advisory Practice is a globally-integrated specialty group supporting the firm’s Valuation & Advisory division. Employing innovative valuation approaches and best practices, the group identifies and quantifies the benefits of sustainable real estate strategies, demonstrating unrealized value potential to clients. Leveraging the firm’s pre-eminent sustainability service platform and Valuation & Advisory, the group provides service offerings to major corporations, lending institutions, and investment entities, including: cost-benefit analyses; due diligence for green acquisition, disposition and retrofit projects; feasibility and market studies for green projects; and mortgage lending appraisals on green buildings.

For more information email Theddi Wright Chappell at [email protected]

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