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Sustainable, Eco-friendly & Green...all add up to Smarter Real Estate |
Most would think that those who promote the eating of fast foods probably do not have a mindset compatible with the green movement. Yet, Yum! Brands, owner of 36,000 restaurants worldwide, including Taco Bell, KFC, Pizza Hut, A & W, and Long John Silver's, is currently engaging in a wide variety of green initiatives. These efforts concern greening its real estate holdings as well its operations.
"We believe that creating green jobs is essential to keeping the United States competitive in the global marketplace." Do you think these words were uttered by a politician or environmental activist? If so, you're wrong. They were spoken by Leslie Dach, executive vice president of corporate affairs and government relations for Wal-Mart. Wal-Mart has been quietly moving ahead many of its competitors in the green economy and has recently launched its Green Jobs Council, which is a partnership with many of its sustainability suppliers, as well as representatives from its own divisions, including store operations, real estate, and logistics.
The entire lending environment isn't undergoing total collapse, and the financial services company Wells Fargo is proof. In fact, they've even managed to create a viable new product line as other banks are struggling and failing.
As we near the dawn of President-Elect Obama's administration, many eyes (well, the ones that aren't bleary from the two-year election cycle) are on the incoming cabinet and the people being selected to help govern. With the strong possibility of a potential five million new green jobs, there’s been buzz about the creation of a "Climate Czar" post. The obvious choice for this position is former Vice President and Nobel Peace Prize winner Al Gore.
One of the best ways to educate this country's young people about greening their world is to build them greener schools. To that end, the U.S. Green Building Council has been promoting the renovation and construction of green and LEED certified schools with its "Build Green Schools" program.
In this era of newly burgeoning alternative energy industries, here is a cautionary tale: VeraSun Energy Corporation is a Sioux Falls, South Dakota-based company that's responsible for approximately seven percent of all ethanol production in the U.S., amounting to 560 million gallons per year. Although ethanol production and use is small compared to the other carbon-based fuels, this is still a large amount.
In this era of newly burgeoning alternative energy industries, here is a cautionary tale: VeraSun Energy Corporation is a Sioux Falls, South Dakota-based company that’s responsible for approximately seven percent of all ethanol production in the U.S., amounting to 560 million gallons per year. Although ethanol production and use is small compared to the other carbon-based fuels, this is still a large amount.
The fact that oil prices have dropped by more than 50 percent from their summer high shouldn't mean that we can start buying Hummers to move into the garages of our McMansions. The fact that oil reached $150 per barrel is a pretty good indication that it will go there again. Regardless of the soft economy, the fact is that we still consume 25 percent of the world's oil, and China and India are still growing.
The green drumbeat continues to be strong in spite of weakness in the economy and housing market. A newly released study called, "The Green Home Builder: Navigating for Success in a Down Economy," by McGraw-Hill Construction and the National Association of Home Builders National Green Building Program, proves the point.
We are currently experiencing a degree of financial mayhem that is way outside the normal margins. In every market downturn (and in this case, it's much more than a conventional downturn), there are ways to find opportunity, and I'm not talking about the fact that people who are flush with cash can start buying undervalued companies and then clean up financially when the economy turns around.
The presidential election is now less than 30 days away, and it couldn't come fast enough. After two years of campaigning, punditry, accusations, and some really bad advertising, America could use a rest. Not that this is a big realization, but after last week's vice presidential debate it's time to get back to some sort of sensible governing. To that point, there was a question about energy policy in that debate to which Senator Biden responded that "Drill, drill, drill" is not the answer to our overall energy and environmental concerns. A measured rejoinder at best, but it could help spur a dialogue about the subject.
The fiscal bailout has been the highlight of the news coming out of Washington DC this week, and rightly so, considering that there are many who believe that without a plan (in whatever form), the country's economic viability will be reliant on some sort of congressional legislation. But there was an important piece of information overlooked by the press this week, which was that the U.S. Senate voted to continue with its $18 billion tax break for renewable energy sources and additional eight-year extension for solar energy.
With all the news about the financial market's meltdown over the last two weeks, most people have been worrying more about the greenback than going green. This makes a lot of sense, considering you can't have one without investment of the other. And will the "spiral" downward on Wall Street ever end? Of course it will because this kind of thing always does, but nobody knows when or how.
Here's some shocking news in a down real estate economy: the green home building market could triple by 2012, or in just three and a half years.
Last week, at a star-studded press event featuring Bon Jovi, New Jersey Governor Corzine, and Newark Mayor Cory Booker, the creation of the Newark HELP Initiative was announced. This is a public-private partnering of Bon Jovi's Philadelphia Soul Charitable Foundation and HELP USA in order to develop the Newark Genesis Apartments in the North Ward.
At the end of the day, the way the economy impacts most people concerns their own bottom line. Whether a developer or buyer of a home, it all basically boils down to how much I can make and how much I can save. Or, as this was defined in the 1992 presidential election, "It's the economy, stupid."
With all of the talk about going green and the global necessity of reducing and eliminating our dependence on fossil fuels (foreign and domestic) there has been only scant discourse on the need for a qualified workforce to put these far-reaching plans in place. There has also been a lot of discussion about the "new" green economy and how much this will impact our lives, but again, where will the jobs come from?
California has just adopted a green building code that is the first of its kind in the country. Signed into law by Governor Arnold Schwarzenegger, this code establishes targets for many sustainability principles, including energy efficiency, use of environmentally sensitive construction products like carpet, paint, coatings, and other eco-friendly building initiatives as well. The "California Green Building Standards Code" is voluntary for builders, local municipalities and communities until 2010, when it becomes mandatory.
Other than discussing the upcoming presidential election, want a sure-fire way to get tempers flaring at a party? Mention Wal-Mart, the world's largest retailer, and start to talk about the way it is actually committed to the concepts of sustainability and green.
Last month, the Building Owners and Managers Association (BOMA International) held its Annual Conference and Office Building Show in Denver. BOMA was founded in 1907 and is considered the oldest and largest professional trade association in its field. Its members include developers, owners, managers leasing brokers and corporate and asset managers. Every year it holds The Office Building of the Year (TOBY) contest. This year, out of 14 prize-winning categories, green buildings won four of the awards.
It's no secret to just about anyone that gas prices are nearing $5 per gallon. It's no secret that the price of oil seems to reach new high every week. It's no secret that the burning of fossil fuel is one of the factors increasing the greenhouse effect.
Times Square is going green. Ricoh, the electronics and technology giant that's Japanese by way of West Caldwell, NJ is putting up the world's first 100 percent solar and wind-powered billboard. Slated for location at 3 Times Square at 42nd Street and Seventh Avenue, it will be 47 feet high by 126 feet long, and draw energy from 45 solar panels and four wind turbines.
The New York State Legislature just passed legislation to offer a one-year tax credit for the installation of green roofs. This credit is up to $100,000 for any building owner that is basically willing to incorporate vegetation into their rooftops. Essentially, a "green" roof is one topped with a waterproof membrane that's then covered with soil and certain types of vegetation.
The New York Marriott Downtown has recently joined the ranks of the sustainable movement by installing a rooftop microturbine farm to help with energy consumption.
Apparently Long Island New York is a hotbed for greening. Earlier this year, we discussed how Levittown was encouraging its inhabitants to bring their homes up to energy efficient standard (see Greening the 'Burbs). Now the town of Babylon is following suit by participating in the "Long Island Green Homes" program, an initiative that will help homeowners subsidize costs for energy-efficient projects.
Let's talk real green.
The "Doing Well by Doing Good? Green Office Buildings" paper published in April by the Institute of Business and Economic Research offers evidence that there is more money in incorporating sustainable building methods. Authored by three distinguished academicians, the study focused on 694 certified green office buildings, which were either Energy-Star or LEED-rated, and 7489 non-certified office buildings located within a quarter mile of them.
There must be something to this green thing after all. After Citigroup completed its first LEED certified office parks in Irving and Los Colinas Texas and its new LEED gold certified 15 story building in Queens, it has opted to build and develop green interiors for the rest of its retail portfolio.
For the first time in decades, Memorial Day weekend showed a decrease in travel. Although the numbers aren't in yet, the FTA announced that road travel in March was down by 11 billion miles, which is the worst decline since these statistics were first reported in 1942. Obviously, the culprit is the price of fuel, which is currently hovering around the $4.00 per gallon mark, depending on the grade you use.
In the ever-greener world of the building industry, two distinct entities are discovering an inextricable link. I'm talking about developers and architects, and their connection may seem obvious; after all, developers always utilize the services of architects in the design of their buildings. However, today's architect is no longer just a designer, but someone involved with the longer-term financial viability of new projects.
Starwood, a hospitality development and management company, has launched "ELEMENT," a new environmentally sustainable brand of hotels. ELEMENT hotels will be built utilizing only LEED guidelines, and the plan is to open twenty in the next year. The first to launch is in Lexington MA, which, coincidentally, is also the site of the first military engagement of the American Revolution. If Starwood is taking advantage of this fact by using Lexington to make its first shot in the Green Revolution, kudos to them.
A cable television show called American Chopper has a terrific following on The Discovery Channel. If you've ever had the chance to view it, you know there's much enjoyment in observing the Teutul family's exploits as they convert motorcycles into works of art. Based in Orange County New York, the show takes place at the family's store, Orange County Chopper.
In the last few weeks, there has been such an incredible amount of "Earth Day" celebrations, festivals, seminars, and exhibitions that it is virtually impossible to have missed one somewhere. Rising energy prices have surely helped increase awareness of the natural environment and the importance of reducing one's carbon footprint, and corporate America is definitely in on the plan.
Apparently there is a brouhaha brewing between Apple Computer and The Big Apple, and it's over the use of a logo. Apple has recently complained to the U.S. Patent and Trademark Office that New York City has infringed upon its trademark by using an Apple logo for its GreeNYC initiative. The computer maker's contention is that this will cause confusion in the marketplace.
Here's some "shocking" news about energy efficient commercial buildings. Apparently, they actually have higher occupancy rates, lower operating costs, increased rental rates, and higher sales values than more conventional structures. This is based on new reports released by the New Buildings Institute (NBI) and the CoStar Group.
Last week, a consumer news event occurred that was lightly reported, but packed seismic ramifications for both good and bad. This past January and February, Apple's iTunes Store was the biggest music retailer in the county, online or off, outpacing even the marketing giant that is Wal-Mart...
An event called Earth Hour 2008 took place last Saturday, starting at 8 pm in Australia, and literally spreading around the globe. Sponsored by the environmental group World Wildlife Fund, Earth Hour's goal was to get governments, businesses, and households to use candle power for just one 60 minute span as a way of cutting back on greenhouse gases. 100 million participants was the target number of people turning off lights and
non-essential electronic gear.
Although the real estate market is currently taking some hits and there is much flux in the development arena, there are still some hotspots that are continuing to move with full force. For example, not only is the West Side of Manhattan showing great strength in commercial and residential development, much of it is also going green.
Have you ever wondered what New Yorkers think of global warming? A new survey conducted by researchers at Columbia and Yale Universities and led by the Center for Research on Environmental Decisions (CRED) at Columbia has found that a majority (78 percent) of New Yorkers believe global warming and climate change is a serious issue caused both by human and natural forces...
The concept of the Energy Efficient Mortgage (EEM) has yet to catch on, especially in light of the current economic environment. According to the Energy Star Program, EEMs are essentially a financing tool that makes it easier for borrowers to qualify for loans to purchase homes with specific energy-efficiency improvements. Lenders can offer conventional EEMs, FHA EEMs, or VA EEMs.
Apparently, the planet's fastest growing economy is not immune to the realities of the marketplace. China, currently the world's industrial engine, has taken a new step towards environmental responsibility by putting rules into effect concerning the seeking of financing through the public equities market. The country's State Environmental Protection Administration (SEPA) is forcing corporations to delay offerings of public stock until they've complied with environmental rules...
The green and sustainability movement is creating opportunities in areas outside of the real estate and construction industries. According to a study published by PricewaterhouseCoopers titled, "Technology Executive Connections: Going Green: Sustainable Growth Strategies," technology corporations entered the green world as a way of making a contribution towards a cleaner planet. However, many of these same corporations are now seeing economic benefits in the creation of newer, cleaner, and more energy-efficient products.
In a little spot Down Under the Manhattan Bridge Overpass, the Brooklyn neighborhood known as DUMBO has taken a dramatic step into the green era by launching a sustainability program called SEED. Smart Environmental Efforts in DUMBO is designed with a "foundation of five initiatives that encourage public recycling, alternative modes of transportation, consumption reduction, greater energy efficiency, and environmental education."
The United States Green Building Council has just announced that it is doubling its Local LEED for Homes Network. This program, which was launched in December 2007, is a national, third-party certification system that was designed to help developers, architects, and designers utilize LEED protocols in the building of new homes.
There is no shortage of green and sustainable commercial buildings that are either currently in development or slated to be built. However, what do we do with approximately 4.5 million existing commercial properties that were not built with sustainability in mind? Are the majority of today's commercial buildings effectively obsolete and in need of replacement?
It isn't only builders and their buildings who are now taking a serious approach to green, it's the tenants who occupy these buildings as well. According to a September 2007 survey by the Society for Human Resource Management (SHRM) that was released this month, more than one-half of those polled indicated that their respective companies have either a formal or informal policy regarding environmental responsibility.
What image do you conjure when you hear the name Levittown? Do you think of America's first planned suburban community, the one with the $5,000 homes built for returning WWII veterans, or is what comes to mind rows and rows of near-identical houses? Levittown spawned an entire building industry in the 1940s and 1950s that resulted in the suburbia we know today.
As the green building movement forges ahead, Fireman's Fund Insurance has taken a bold and creative step by becoming the first insurance company to offer a "Green" insurance for altenative and LEED-certified commercial buildings.
New York State's Energy Star Labeled Homes program reached a big milestone last year by surpassing the 10,000 mark. Instituted in 2001, Energy Star is sponsored by the New York State Energy Research and Development Authority (NYSERDA), in coordination with the Environmental Protection Agency (EPA).
Last month, PNC Bank was honored by the New Jersey District Council of the Urban Land Institute for its reduced impact on the environment. This was based on the bank's 16 Green Branch® locations, the most of any company in the state, and 42 certified environmentally-friendly buildings, which includes two major facilities.
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