The Truth About Green Offices

As a San Francisco-based commercial real estate broker who specializes in helping office tenants create healthier, more energy-efficient work environments, it’s exciting to see the progress we’ve made in moving these issues to the forefront of the discussion.  The moniker “green” has gone from being “hippy”, to trendy, to en vogue, to cliché and now it’s the standard.  Call it what you will, but this framework of thinking is here to stay and will benefit not only us, but generations to follow.

outside

Having said that, and for lack of a better phrase, we need to keep it real and constantly remind ourselves that it’s not the perception of sustainability that matters, but the reality and implementation of it.  To the corporate decision makers that are reading this post, place the health of your employees and the sustenance of our earth first. Healthy employees are intrinsically happy, productive employees, and energy and waste reduction both on-site and within your supply chain directly and positively affects a company’s bottom line; these are facts.  Everyone wins.

I want to share what I feel are the most important decisions you can make when locating and operating your business, from a sustainability perspective.  It doesn’t matter the line of business you’re in, these are principles that can benefit us all.

Location, location, location.

Where you do business is just as important as how you do business.  If an option, give preference to high-density locations where your employees can commute to work via mass transit while eliminating their need to drive somewhere to get lunch or grab a coffee with a client.  Encourage and reward employees who bike or take a bus to work.  There are federal incentives available that can benefit you and your employees such as the Commuter Check program that can save companies up to 10% on their payroll tax expenses while saving their employees up to 40% on their commute costs.

Reduce, reuse, and yes, recycle.

Tearing down the construction of an entire floor in an office tower and building it back up with sustainable materials doesn’t make you “green”.  Too often I see perfectly useful tenant improvements demo’d and sent to a landfill while new resources are acquired and constructed.  Not only does this translate into unnecessary additional expenses for the office tenant, but it puts an unnecessary burden on our earth.  Identify spaces that more closely match your desired configuration, and you’ll reduce construction waste and monetary spending.  They’re out there, it just takes a little more effort.

Think beyond your company.

In addition to making better informed purchasing decisions within your office, are the values and mission of the vendors in your supply chain congruent with your own?  We vote with our purchasing dollars each time we place an order.  You, NOT the supplier, create demand.  Give preference to companies that are also taking pro-active steps to reduce their consumption and waste, such as your office supply vendor.  The market will punish companies that don’t, and reward those that do.  Change starts with you.

Reduce toxicity in the workplace.

Typical office environments have the potential to be highly toxic and can negatively affect the performance, happiness and productivity of your employees.  If you’re a decision maker, you have a responsibility to provide a safe, healthy workplace.  Give preference to properties with operable windows, abundant natural daylight and landlords that use low-voc paints and carpeting.  Segregate copiers in enclosed rooms with adequate ventilation.  Decorate your office with plants that are known to cleanse the air and remove chemical vapors while absorbing carbon dioxide.  Consider purchasing used or refurbished office furniture, as it has already off-gassed harmful chemicals and vapors.

Engage your employees.

The greenest tenant improvements in the world will be ineffective if the building’s occupants aren’t engaged, and whose sustainability goals aren’t aligned with the company’s. How the office is occupied is just as important as how it was built out.   Engage your employees by more than just openly sharing your sustainability plan, but also explaining why certain measures were implemented (i.e. the waterless urinals will save 250k gallons of water this year).  If new technologies have been implemented, explain how to use them.  Reward employees who are proactive in helping the company achieve their sustainability goals.  Make it convenient and easy for employees to recycle.    Provide filtered tap water for employees rather than purchasing water bottles.

Developing a sustainable real estate strategy is really nothing more than developing a smart real estate strategy.  Don’t just “go green” for show, but be sincere in your approach and you will reap the benefits.  The truth is, a green office will yield happier employees while positively impacting your bottom line, so do it right.

Energy Management Apps Any Organization Can Afford

Ashley

By Ashley Halligan, an analyst at Software Advice

As environmental policy, benchmark reporting laws, and a general social awareness become more common practice in day-to-day business practice, new technologies are being designed and implemented by slews of organizations to measure their environmental performance and overall impact. Software developers are designing entire suites centered around benchmarking performance, suggesting upgrades, identifying operational inefficiencies, and even gamifying occupant behavior to encourage compliance with an organization’s goals.

Some organizations may not have the capital to immediately invest in such systems, but still want to get on board with responsible consumption–and identify inefficiencies before they become too problematic or expensive to overcome. For those organizations able to implement full suites dedicated to such features, that’s fantastic. For others, however, there’s a slew of applications seaping into the market, making similar tools available to literally any organization. Addressing everything from holistic energy audits, to measuring air quality, and even providing ENERGY STAR benchmarking, here are two affordable–and one free–application, all organizations should know about.

Recently awarded second place in the Environmental Protection Agency’s Apps for Energy contest, Melon Power was designed following the White House’s Green Button initiative–encouraging energy providers to make consumption data widely available–both residential and commercial–to their customers. At $500 per building, this Web-based application takes Green Button distributed data covering a 12-month benchmarking period, calculates an ENERGY STAR score, then reports that data to the EPA’s Portfolio Manager, in compliance with state laws that have been rolled out thus far.

Another powerful app–ecoInsight Mobile Audit for iPad–performs full energy audits of a building’s performance following user-inputted data collected while doing a thorough walk through. This free application is a powerful tool allowing operators to input operational measurements such as area, space, light wattage, etc. Once a walkthrough is complete, data is uploaded to ecoInsight’s site–where upgrades are suggested and customer proposals can be drafted.

Lastly, the American Society of Heating, Refrigerating and Air Conditioning’s (ASHRAE) offers their HVAC ASHRAE 62.1-2010 for $19.99 which performs ventilation calculations based on user-entered data. This app distinguishes whether a building meets the industry-accepted ASHRAE standard for indoor air quality (IAQ) in commercial spaces. Additionally, given that IAQ is of importance in achieving certain LEED credits, this application can help an operator understand their current benchmark and if improvements need to be made to achieve the necessary credits.

These applications provide a great launching point for organizations wishing to assess and improve performance–whether for legal compliance, LEED certification–or simply, to demonstrate corporate social responsibility and a commitment to environmental performance. Read more about the applications and their features on the Software Advice blog: 3 Energy Management & Environmental Performance Apps Any Organization Can Afford. Feel free to reach out to me via ashley@softwareadvice.com with any suggestions or comments, or leave them below.


Smart Office Leasing Strategies are Inherently Green

A skillful commercial real estate advisor approaches each transaction with the goal of obtaining the best deal and terms possible for their client, while also identifying a space that will maximize employee comfort and productivity. The advisor also plays a key role in influencing how the new office is built out and constructed, as well as where the office is located.

Sustainable business practices just happen to exist within the intersection of all of these goals; and if they do not, they should.

There are many opportunities throughout a commercial lease transaction to save the client money, and many of them also have the added benefit of being more responsible decisions, environmentally. Here are few examples of leasing strategies that easily align to accomplish both smart business and environmental goals:

THE LOCATION OF THE OFFICE

Having an office located within a high-density area makes a lot of business sense; it makes a company more accessible to a wider and deeper labor and customer pool, and associated car parking costs can be reduced by simply being connected to multiple mass transit options. The positive environmental impact of removing single-passenger cars from the road are many, and employees who bike or walk to the office are not only happier and healthier, but more productive while at work.

Giving preference to LEED Certified buildings is a great start to any office search, as the ownership has already taken the necessary steps to reduce energy, waste and water consumption, and improve indoor air quality.

THE OFFICE BUILD-OUT

By identifying an office that most closely matches the client’s desired configuration, a better rental rate can be negotiated since the landlord’s cost of construction will be lower. However, scaling back the scope of the tenant improvements also helps to reduce added pressure on new resources as well as minimizing construction waste that would have otherwise been sent to a landfill.

Boosting employee health and comfort also increases productivity, and one of the most effective ways to do that is to increase access to natural daylight. This is most easily accomplished in an open office plan along a window line, however if private offices are necessary, then utilizing glass will allow sunlight to permeate the office. If the tenant is located on the top floor of the building, skylights are often inexpensive and effective. Increasing the availability of natural sunlight simultaneously reduces the need for overhead lighting – and reducing energy consumption leads to cost savings.

FURNISHING THE OFFICE

With the sheer surplus of used and refurbished office furniture available today, purchasing new is most often a waste of money. The leasing broker has relationships with many furniture vendors who can provide an office tenant with quality used furniture, usually 30-50% below the cost of purchasing new. But in addition to saving the client money, the broker has again helped reduce pressure on raw materials and helped divert used furniture from a landfill. Additionally, new furniture can also be extremely toxic and can leach harmful VOC’s (volatile organic compounds), formaldehyde and other toxic chemicals into the air. Used office furniture will have already off-gassed these fumes and will therefore not negatively affect the indoor air quality of the office.

There are of course many, many opportunities to align sound commercial leasing strategies with sustainable business practices, especially when the real estate process begins with mindful focus and awareness. Identifying the intersection of these goals is not only SMART, but GREEN.