REIA-GRN-in-GREEN-SKYSITE-0323091 by shuifanglj


									 Jeff Grossberg, CEO
SkySite Property, LLC
 About   SkySite

 Impact   of Built Environment

 Decreasing   Expensing - energy efficiency

 Increasing   Income - marketing green

 Funding   and Incentives - making it gr$$ner

 Challenges   and Recommendations
   Consultation company focused on helping others
     Corporate Environmental Strategies (CES)
     Municipal Environmental Strategies (MES)
     Green Building Strategies (GBS)

   Teach others to achieve environmental goals through:
     Education
     Facilitation
     Participation
   Baseline Review: Onsite inspection, data review & report generation
   Lighting Design
   HVAC & Controls
   Water Conservation
   Building envelope: Roof, windows, walls & doors
   Interiors: Green package
   Certifications: LEED, Energy Star
   Renewable Energy Options – Solar, Wind, Geothermal
   Green Project Implementation and Management
Identify objectives. With your help, we will create short- and long-term
objectives to improve your overall corporate environmental strategy.

Evaluate findings. Our qualified team will visit the property and survey all
major assets, including lighting, water, HVAC and more. We will develop a
report with our recommendations that identify energy and resource
conservation improvements that will benefit your properties. This report
will include estimated monthly savings as a result of the upgrades and show
how quickly your company will reap a return on investment.
Design a solution. Once your company decides to proceed, we will provide
best-of breed options for fixtures, controls, products, etc. Aesthetics are
just as important to us as savings, and will work with you to ensure you’re
completely satisfied with the results.

Manage the project. After developing the final scope, including ROI
considerations and financing arrangements, our team will work with your
company to plan the logistics for the new implementation. We offer a turn-
key solution and can handle the work from start to finish.
Review and define work orders. After developing the final scope of the project,
including ROI considerations and financing arrangements, our team will work with
your company to plan the logistics for the implementation. We offer various
installation options, including working with your company’s own labor force or our
qualified network of contractors. We ensure that manufacturer warranties and
guarantees will be upheld regardless of who actually performs the work.
   International Council of Shopping Centers launched Sustainable Energy
    & Environmental Design Initiative
   SkySite and ICSC formed partnership in 2007 to create Green Zone and
    Green Pavilion as part of initiative
 next evolution in organization’s commitment to the
   In response to Green Zone success, ICSC and SkySite Property debuted
    RetailGreen 2008
   International Greening Events in 2009
Why Is Buildings Energy Use Important?

Combined residential and commercial buildings sector is the U.S.
largest energy consumer:

40% of U.S. Primary Energy Consumption

72% of U.S. Electricity

55% of U.S. Natural Gas

Buildings sector energy consumption growing faster than any other
sector (industrial and transportation).

                                 Source: U.S. Department of Energy (
The retail sector presents an immediate opportunity to realize
efficiency savings

20% of the total site energy consumption of all the real estate sectors
(Institutional facilities- 32%, Office- 17%, Hospitality- 9%)

Type of Retail                % Energy Consumption                Sq. Feet

Warehouse (big box)                     4%                        9.55
Retail Stores                           4%                        4.32
Food Service (restaurants)              8%                        1.65
Food Sales (grocers)                    3%                        1.26
Refrigerated Warehouse                  1%                        0.53

                                          Total: 17.37 billion sq ft
                                  Source: U.S. Department of Energy (
The retail sector has disproportionately high energy use per square
foot (EUI)

Type of Retail     Energy Use Intensity- kBtu/sqft/year (est.)

Warehouse                                           30

Retail Stores                                       75

Food Service                                        360

Food Sales                                          200

Refrigerated Warehouse                              85

                                 Source: U.S. Department of Energy (
 Behavioral
  Instant Payback
 Maintenance
  2months-6months
 Low-Hanging Fruit
  6months-3 years
 Capital Expenditures
  3years-10 years plus
Low Hanging Fruit              Payback    ROI

Programmable Thermostat -        0.6     156.5%
Standby Power Reduction -        0.8     120%
Compact Fluorescent Lighting     0.8     133.3%
Hot Water Heater 'Blanket'       0.8     120%
Shower Heads -                   0.9     111.1%
Heating System Tune-up -         1.1      90%
Seal Duct Leaks -                1.5     66.7%
Dishwasher -                     1.5      65%
Water Filters -                  1.9      52%
Water Efficient Toilets -        2.0      50%
Replacing inefficient lighting systems can make a big difference to your
bottom line:

                            Lighting Retrofit Costs
Fixture         Quantity Total Cost      Annual Savings     1 Year ROI
1x3x1           29         $752          $507               67.4 %
1x4x1           36         $967          $661               68.3%
1x4x2 (24 hr) 79           $2,862        $8,687             303.5%
Cans (16 hr)    58         $2,284        $2,950             129.2%
Cans (24 hr)    46         $1,600        $3,057             191.1%
Wall Sconce     50         $1,813        $1,372             75.7%
Landscaping     130        $3,088        $6,740             218.3%

Total Retrofit Price: $13,366                     Total Annual Savings: $23,974
Payback (years): 0.56                                         1 Year ROI: 179%
Current Annual Water Costs (usage & price per 1,000 gallons)

Fixture           Daily Usage        Price       Daily cost     Annual Cost
Toilet              1.604           $3.22          $5.17         $1,886.74
Sink                1.513           $3.22          $4.87         $1,778.93
Shower              3.037           $3.22          $19.83        $3,571.33
         Total:     6.154                          $19.83        $7,237.00

Retrofit Annual Water Costs (usage & price per 1,000 gallons)

Fixture           Daily Usage        Price       Daily cost     Annual Cost
Toilet              1.192           $3.22          $3.84         $1,401.58
Sink                0.344           $3.22          $1.11         $404.30
Shower              1.822           $3.22          $5.87         $2,142.80
         Total:     6.154                          $10.82        $3,948.68
   Using a 2003 baseline, by 2007 Simon achieved reduction of energy in
    controlled areas by 12% for lighting and cooling without compromising
    safety or incurring additional liability.

   Within its major enclosed 200 malls, saved over $18mil in operating
    costs per year.

   Awards: NAREIT's 2007 "Leader in the Light" awards. Energy Star Partner
    of the Year.

   Utilizes various means to achieve energy efficiency:
       Lighting retro, inside and outside
       HVAC maintenance
       Energy Misers on vending machines
       Sub-metering- Payback of one year of less
       Energy management system
 Wind, Solar, Geo, Hydro, Bio
 Geographic implications
  Production Issues
  Incentives Issues
 Asset Class
  Considerations
 Sub-metering
  Multi-Family,   Office
 Add    renewable
  Tax   Credit increased
 Higher   Demand
  Office,Hospitality, Multi-Family,
   Industrial, Retail
 Marketing   and PR
  Differentiate
 Higher   Rents, lower vacancy

 Buy/Sell
   Green buildings use energy, water and other resources efficiently, minimize
    pollution and waste, and reduce overall environmental impact.

   The green building industry embraces the use quickly renewable natural
    resources such as bamboo, earth, clay, and wool.

   Traditional natural resources include non-renewable resources such as
    natural gas, coal, and metals, and oil.

   Net Operating Income is increased by both reducing operating expenses
    (maintenance, energy management, insurance, etc) and increasing revenue
    (attracting a higher paying client more expeditiously).

   Energy & water conservation measures can create a higher stabilized NOI
    within one year operating history, increasing the value of property.
   Many cost effective savings such as lighting and HVAC system upgrades carry less
    than 3 year paybacks and can translate to value increase of over 5 to 7 times the
    capital outlay for said improvements.

   Cost less to operate because, among other things, they use less energy and water,
    and require less maintenance.

   Better indoor air quality due to minimization of chemicals, mold, and other
    harmful substances.

   Excellent resale value because green buildings are quality buildings and they’re
    built to last.

   Offers an opportunity to increase rent price by saving your tenants money on
    utility bills.
   LEED building command rent premiums of $11.33 per square foot over
    their non-LEED peers and have 4.1 percent higher rates of occupancy.

   Rental rates in Energy Star buildings represent a $2.40 per square foot
    premium over comparable non-Energy Star buildings, and have a $3.6
    percent higher occupancy rates.

   Energy Star buildings are selling for an average of $61 per square foot
    more than their peers while LEED buildings command a remarkable $171
    more per square foot.

   Helps preserve quality of life for the planet’s inhabitants.
   Energy efficient lighting and controls
   On-site energy production/renewable energy credits
   Storm-water management
   Usage of recycled building materials and/or rapidly renewable materials
   Low usage water systems and intelligent heating systems
   Heat-absorbent walls
   Green building envelope
   Low- or no-VOC paints, primers, sealants & carpets
   Skylights & clearstory windows for daylight harvesting
   Reversible exhaust fans
   White Reflective or Green Roofs
   Low-maintenance landscaping and use of native species
   Lower maintenance and energy costs for property

   Higher occupancy levels and higher rent from tenants

   Lower CAM charges to attract tenants

   Improved work environment

   Reduction in insurance liability

   Healthier atmosphere

   Increase the value of the property

For those operating assets, SkySite can help to identify improvements that can be
made that can increase the value of the property with various levels of payback.
SkySite can provide actual implementation of said improvements, making the
process of greening one’s property as convenient as possible.
   Higher selling price for superior high performance buildings
   Demonstrate possible improved NOI for improvements yet to be made
   Higher demand for green assets
   Better market positioning results in faster sales and higher offers.

Before the disposition of property, SkySite can help Sellers evaluate their assets to
determine possible high ROI improvements. Armed with the information, a Seller
can negotiate with potential Buyers to justify a higher selling price due to the
generally fast paybacks offered by many improvements.
   Identify the possible improvements to be made that increase NOI upon purchase
   Examine the possible risks associated with environmental issues and energy
   Recognize undervalued opportunities
   Evaluate legitimate green building features from those “green wash” invalid

Before acquiring a property, SkySite can help a Buyer determine how potential
energy improvements can lower operating costs and quickly increase asset value.
The Buyer will be able to determine their environmental exposure to mandatory
improvements per future governmental policy changes. This information can give

the Buyer an advantage when negotiating with Sellers.
   Federal, State, and Local incentives available
   A tax deduction of up to $1.80 per square foot is available to owners or
    designers of new or existing commercial buildings that save at least 50% of
    the heating and cooling energy of a building that meets ASHRAE Standard
   Partial deductions of up to $.60 per square foot can be taken for measures
    affecting any one of three building systems: the building envelope, lighting,
    or heating and cooling systems.
   Depreciation allowance for up to half the value—as much as 50 percent
    accelerated depreciation on different lighting components in leased spaces
   Additional incentives are available depending on specific municipality, i.e.,
    faster permitting in Chicago
   Stimulus Act
Commonwealth Edison Rebates:
   Program is available until money runs out each year—first year of a
    three-year program
   Rebates available for replacing T-12 lighting with T-8 (up to $16 per
   Money for replacing incandescent lighting with compact fluorescents or
    LEDs (up to $2 per bulb)
   As much as $40 rebate per fixture for upgrading high-intensity discharge
   Installation of occupancy sensors can be eligible for $0.10 rebate per
    square foot controlled
   Pay for improvement project out of savings
   Acquire green building loan
   Finance with help of energy performance contract
       Customer shares the savings of 50 to 60 percent to pay off the cost of
        the improvements
       Minimizes capital expense
       More companies available today that specialize in financing energy
        performance contracts.
   Signing a managed energy service agreement (MESAs) where financing
    agent takes over utility bills
   SBA 504 Program- SomerCor
   Landlord does not have financial incentive to improve energy efficiency
    for existing tenant who are paying their own utilities. If the lease terms
    are too short, then the tenant has no incentive to improve their space.
   Landlord is key player in discussion. Tenants often have limited or no
    control over their impact on major energy items such as central HVAC.
   Lease Language: Lease terms are often written that prorate utilities on a
    square foot basis - like RUBs for apartments. The property may not be
    sub-metered, and thus there is often less financial incentive on the part of
    tenants to improve their own space.
o   Monitoring actual usage cost through sub-metering would enable more
    incentive to make necessary improvements to leased space by the tenant.
o   To achieve a common goal of reduced energy usage and operating costs,
    the language of the lease agreement needs to reflect efficiency gains on a
    shared benefit.
 ExpandCurrent Loan

 Refinance

 Performance   Contract

 Guarantee   Program

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