Monday June 24 2019 400 PM 500 PM Speakers Craig Haglund US EPA ENERGY STAR Marta Schantz Urban Land Institute Eric Duchon LaSalle Investment Management Eric Tilden Cushman amp Wakefield ID: 786184
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Slide1
Bridging the Owner-Tenant Divide to Unlock New Energy Savings
Monday, June 24, 2019: 4:00 PM - 5:00 PM
Slide2Speakers
Craig Haglund
US EPA
ENERGY STAR
Marta Schantz
Urban Land Institute
Eric Duchon
LaSalle Investment
Management
Eric Tilden
Cushman & Wakefield
Slide3The Owner’s Perspective
Eric Duchon, LaSalle Investment Management
Slide4Slide5LaSalle Investment Management
Slide6Asset Level ESG Integration
Slide7Tenants want Sustainability
Slide8…Even Industrial Tenants
Slide9Slide10Slide11Slide12Slide13ENERGY STAR Tenant Spaces
Craig Haglund, US EPA
Slide14Why ENERGY STAR Tenant Recognition?
ENERGY STAR’s objective measure of whole building efficiency has motivated change in the market, but barriers remain, especially in multi-tenanted buildings
Tenant activity often accounts for the majority of energy use in multi-tenanted buildings
Efficiency can save tenants money, directly or indirectly
Recognition highlights leaders, who show the way for everyone else
Slide15Energy Efficiency Improvement Act of 2015
Directed EPA to develop recognition for energy efficient commercial tenant spaces
Design & Construction (D&C)
To be proposed after DOE study on feasibility of high performance design and construction in tenant spaces
Study published April 30, 2016Occupancy-Based
Modeled on 1-100 ENERGY STAR score for whole buildingsRequires data collected by Energy Information Administration, available 2021 at earliest
Slide162017-2018 Pilot
EPA proposed recognition criteria in 2016, and launched pilot for office spaces in summer 2017
Office tenants only
Broad and diverse group of Charter Tenants
Over 140 spaces, and 70 organizations
Represent 25 states, plus DC and Puerto Rico
Include occupied tenant space, as well as in design and build/fit-out
On June 12, 2018, EPA announced recognition for 51 Charter Tenant spaces
2,000
sq’ to over 1.3M
sq
’
15 states
16
Slide17Automatic Controls Company, Inc.
CodeGreen
Solutions
COOKFOX Architects
CRB
Cushman & Wakefield
DOE Office of Legacy Management
DNV GL Energy
Empire State Realty Trust HQ
Event Network, LLC. Forest City Realty Trust, Inc.
Harvard Pilgrim Health Care
Hines (East & Midwest Regions)
HKS, Architects
HNTB Corporation
JCDecaux
JLL
JPMorgan Chase
Kilroy Realty Corporation
LaSalle Investment Management
Legrand NA
LinkedIn
MG2 Corporation
Morgan Stanley
Related Companies
Robert A.M. Stern Architects
Rocky Mountain Institute
Salesforce
Samsung Electronics America
Satori Energy
Servidyne
, LLC
Shorenstein
Skanska USA
TowerPinkster
USAA Real Estate
Ventas, Inc.
Verizon
Vornado Realty Trust
Wells Fargo
Zeal Optics
Charter Tenants
Slide18Criterion
Value
Pilot Requirement and Results
Estimate Energy
Establish practice; placeholder for eventual benchmark
Use pilot-scale web tool (developed in collaboration with DOE)
Worked well for pilot; needed to refine calculations and update analysis
Meter
Enables measurement and ability to track improvement
Verify meters in place
Worked well; more guidance needed
Light Efficiently
Key way tenants can reduce energy use; performance-based metric
Conduct lighting inventory and test pilot-scale web tool
Additional analysis and testing of metric needed
Use Efficient Products
Plug load is growing energy use; many high efficiency options
Complete equipment inventory
Assessing option; inventory was just for pilot, to gather data
Share Data
Allows whole building benchmarking, landlord engagement
Create Portfolio Manager account
Worked well
Slide19Criterion
Full Program Requirement
Estimate Energy
Tenant must input space characteristics into full-scale web tool to create energy estimate
No performance threshold
Meter
Tenant must meter all energy they are responsible for in building
Includes lighting, plug-load, supplemental HVAC (if applicable), data center (if applicable)
Meters must be +/- 2% accuracy
Light Efficiently
Tenant must conduct lighting inventory of their space, and input information on a suite by suite basis into the tenant tool.
Tenant must have estimated Lighting Energy Use Intensity (LEUI) at or below Target LEUI, which is based off of previously entered space characteristics. Requirement is based on weighted average of entire tenant space.
Use Efficient Products
Tenant must provide proof of a procurement policy, indicating purchase of energy efficient equipment. Examples: Green lease, corporate policy, TBD
Share Data
Tenant must agree to share energy data with landlord upon request
Sample Property
Sample Tenant Space
Tenant interface embedded within
Portfolio Manager.
Building Information added, followed
by tenant space on a suite by suite basis.
Slide21Sample Tenant Space
Sample Tenant Space
Adding suite characteristics.
Adding equipment information. Used for both energy estimate and equipment requirements
Slide22Sample Tenant Space
Sample Tenant Space
Adding lighting inventory Need to know fixtures, wattage, and controls
Summary page details individual suite results.
Option to apply for recognition
Slide23Sample Tenant Space
All suites listed in table for tenant space “home page”
Option to apply appears once all criteria are satisfied
Application can be generated.
Licensed Professional (PE or RA) needs to perform site visit and sign off
Sample Tenant Space
Slide24Tenant Energy Optimization Program (TEOP)
Marta Schantz, Urban Land Institute (ULI) Greenprint
Slide25ULI Greenprint: “Reducing Carbon, Building Value”
Worldwide alliance of
leading real estate owners and financial institutions
committed to improving the
environmental performance
of buildings
Founded in 2009
Member-driven initiative with the
goal
of reducing greenhouse gas emissions by 50% by 2030
Includes ~
30 companies
representing 8,000 properties totaling 164 million square meters across
28 countries
Slide26ULI Greenprint Members
Slide27Annual Tenant Expenses ($/Square Foot)
$300
$30
$3
Slide28Tenant Efficiency Programs in the Market
Tenant Energy Optimization Program
ENERGY STAR for Tenant Spaces
Green Lease
Leaders
Landlord-Tenant Energy Partnership
LEED ID+C & WELL Standards
Fitwel
Certification
Slide29Tenant Energy Optimization Program (TEOP)
Free and open program
A returns-driven, 10-step process to embed energy efficiency decisions into tenant space design and construction
Piloted in 10 tenant fit-outs, documented in case studies
Energy savings of 30 – 50%Payback period of 3 – 5 years
Average IRR of 25%
Slide30Creating Business Value
Slide31The 10-Step Process: Phase I - PRE-LEASE
Slide32What is a Green Lease?
Reduce energy use:
from 11-22%
Reduce utility bills:
up to $0.51 / ft
2
Example Green Lease Clauses/Provisions
“Landlord and tenant shall provide a point of contact to discuss issues related to sustainability and energy. Issues include, but not limited to retrofit projects, billing issues, energy efficiency upgrades, and data access.”
“Any and all Tenant Improvement Work and/or Alterations will be performed in accordance with Landlord sustainability practices that the Tenant has accepted as part of the lease agreement, namely the leased space fit-out must meet Environmental Protection Agency’s ENERGY STAR Tenant Space criteria.”
Sustainability POCs
Minimum Efficiency Fit-Out
Slide34Green Lease Leader Credits
1. Track tenant space energy use
2. Track tenant space water use
3. Request whole-building ENERGY STAR score from landlord annually
4. Ensure transaction management team receives energy training5. Implement tenant energy management best practices
6. Purchase on-site renewables if offered by landlord and competitively priced7. Accept cost recovery for efficiency upgrades benefitting tenant
8. Include requests for energy information in Site Selection Questionnaire9. Demonstrate innovation in leasing
Slide35The 10-Step Process: Phase II - DESIGN & CONSTRUCTION
Slide36The 10-Step Process: Phase II - DESIGN & CONSTRUCTION
Slide37The 10-Step Process: Phase III - OCCUPANCY
Slide38TEOP Helps Prepare for DOE “Green Lease Leader” and EPA “Tenant Star” Recognition
Slide39TenantEnergy.ULI.org
Slide40The Tenant’s Perspective
Eric Tilden, Cushman & Wakefield
Slide41GLOBAL OCCUPIER SERVICES
Strategic consulting
Portfolio administration
Transaction management
Project and development services
Integrated facilities management
CAPITAL MARKETS
Investment sales
Equity, debt, and structured finance
Corporate finance and investment banking
VALUATION & ADVISORY
Appraisal management
Diligence advisory
Dispute analysis and litigation support
Financial reporting
Property tax services
Valuation/Portfolio valuation
PROJECT & DEVELOPMENT SERVICES
Program, project, and construction management
Development services and master planning advisory
Procurement and bid management
Schedule and budget management
Cost consultancy and value engineering
Space and occupancy planning
Sustainability
Workplace consultancy
INVESTMENT & ASSET MANAGEMENT
Segregated portfolio management
Asset management
Fund creation and management
Indirect investing
Fund investment strategy
TENANT REPRESENTATION
Strategic consulting
Occupancy workplace strategy
Acquisitions, dispositions, and build-to-suits
Market, demographic, and labor analysis
Lease restructuring; subleasing services
Lease auditing
AGENCY LEASING
Strategic asset analysis
Comprehensive property positioning
Broker relationship campaigns
Prospective tenant analysis and canvassing programs
Letter of intent and lease negotiation
Regular client reporting
Coordination of additional real estate services
ASSET SERVICES
Engineering and maintenance
Accounting and financial reporting
Contract and vendor maintenance
Lease compliance and administration
Property management
Construction management
Strategic account management
Sustainability
FACILITY SERVICES
Janitorial
Maintenance
Critical environments
Landscaping
Office services
Slide42Slide43Sustainable Procurement
Slide44DO IT DURING FITOUT
PRE-DEVELOPMENT
OCCUPANCY
DEVELOPMENT
Site/Space Planning
Goal Setting
Concept Design
Information Accessibility
Final Design
Coordination
Construction
Dashboard Development
Operations and Reporting
Slide45SOFT
COSTS
FIT OUT
FURNITURE
LOW
SOFT
COSTS
FIT OUT
FURNITURE
MEDIUM
HIGH
SOFT
COSTS
FIT OUT
FURNITURE
8%
66%
16%
9%
58%
18%
10%
52%
20%
10%
A/V, IT
MOVE
A/V, IT
MOVE
A/V, IT
MOVE
15%
18%
$7.20
$59.97
$14.76
$9.17
$12.54
$76.58
$23.32
$20.74
$18.75
$95.12
$36.75
$33.51
DC FITOUT COST BREAKDOWN
Slide46LEED V4.1 INTERIORS
Slide47REAL-TIME TENANT METERING
Slide48REAL-TIME TENANT METERING
Slide49“selected submetering solution easy to deploy”
REAL-TIME TENANT METERING
Slide50LIGHTING RETROFIT
Slide51PROPERTY
ENGAGEMENT
Slide52KNOW YOUR TENANTS
KNOW YOUR OWNER
Slide53LEASE HOURS VS PHYSICAL OCCUPANCY
DELAYING OUTSIDE AIR
HVAC AFTER HOURS ON DEMAND
TEST YOUR AIR TEMPERATURE LIMITS
HOW HOT IS YOUR HOT WATER
MAKE IT COMPETETIVE
TEST YOUR LIMITS
Slide54XYZ Building’s current ENERGY STAR score:
75
Slide55Slide56BE AN ENERGY HERO!
POWER IT DOWN.
AAA IS TRYING TO SAVE ENERGY.
YOU CAN HELP BY TURNING THIS OFF AT NIGHT
Slide57Slide58Slide59Thank You
Craig Haglund
US EPA
ENERGY STAR
Marta Schantz
Urban Land Institute
Eric Duchon
LaSalle Investment
Management
Eric Tilden
Cushman & Wakefield
Slide60YOUR OPINION MATTERS!
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