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office property management

Medical Office Market Stumbles

After a year of stabilizing market conditions for medical office space in the San Diego market, market indicators are showing some negative signs. Does this downward trend signify a larger market movement?

The table below summarizes vacancy rates and rental rate data from CoStar Group compiled by Integra Realty Resources – San Diego.

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Currently, the San Diego Office vacancy rate is approximately 10.0%, slightly up from last quarter. The increase is not significant but worth noting since vacancy rates of other property types have yet to increase this year.

What is also interesting to note is the average asking rental rate of medical office space in the San Diego market. Based on data from CoStar Group, rental rates hit the bottom of the market in Q4 2013 (which is considerably later than other property types) with an average rate of $27.94 per square foot per year. After climbing about 2% in the first half of the year (reaching $28.55 per square foot per year), rental rates saw a slight decrease (less than 1%) in Q3 2014.

Completions and Net Absorption

In addition to the change in the San Diego Office vacancy rate, overall completions and net absorption figures were reviewed. The following data is from CoStar Group, compiled by Integra Realty Resources – San Diego.

office property management

So far this year, no medical office completions have occurred, and the past three years do not indicate any noticeable trends. Absorption was fairly consistent over the past years with positive absorption in the 200,000+ range. However, in 2014 there is negative absorption of 31,470 square feet.

Summary

Based on market data, medical office market conditions have not improved as significantly as with other property types, as evidenced by increasing vacancy rates, decreasing rental rates, a lack of newly completed office product, and negative absorption.

That said, the shifts in these market indicators are nominal and could change significantly towards the end of the year. Additionally, niche markets such as biotech space continue to thrive in San Diego County. Although the medical office market is not as strong as other property types, it is forecasted that market conditions will continue to stabilize.

Sources:

CoStar Group

Compiled by Integra Realty Resources – San Diego

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Bristol Square

commercial property management companies

Property Name: Bristol Square
Case Study: Property Management
Property Location: 185 West F Street, San Diego, CA 92101
Property Description: Office, 60,749 total square feet

 

Client Requirements

In 2013, Meissner Jacquét Commercial Real Estate Services took over the commercial property management and leasing oversight of Bristol Square, a 7-story office building located in the metro market of San Diego and Downtown submarket. Due to ownership’s out-of-state location, owner communication, tenant retention and leasing oversight are paramount to ensure ownership’s business plans and property objectives are achieved, including maintaining high occupancy levels, tenant satisfaction, operational excellence, and maximizing operating income.

Process

Meissner Jacquét Commercial Real Estate Service works closely with the building’s largest tenant, the U.S. General Services Administration (GSA), to ensure tenant improvements are completed on time, within budget, and adherence to high security specifications are maintained. Due to the nature of the leases, improvements are closely monitored to ensure the most cost-efficient measures are in place, as all utility expenses are ownerships’. Completed and proposed upgrades to the building include a common area lighting retrofit, a tenant improvement to modernize and reconfigure underutilized space, new exterior paint, and a parking garage lighting retrofit. Meissner Jacquét ensures proactive response to all tenant needs in order to create a long-term, stable environment in which Bristol Square’s tenants can conduct their business. Tenant satisfaction is paramount, which is why effective leasing agent coordination is a high priority. Meissner Jacquét’s interface with the listing agent and brokerage community is always prompt and professional.

Result

Since 2013, Meissner Jacquét Commercial Real Estate Services has consistently maintained a 95% occupancy rate by ensuring superior tenant retention through hands-on tenant relations. Meissner Jacquét continues to provide professional real estate services to this excellent office asset.

Source
Meissner Jacquet Commercial Real Estate Services

Utilizing Open Office Space When Your Workforce is Traveling

Summertime means folks want to hit the road on vacation, which also means that the office is not necessarily at full capacity in June, July and August. But this doesn’t mean that office spaces should go unused, be unattended or become a money drain.

Rearrange Existing Space

This may seem like a given, but rearranging the office layout can be a very smart thing to stretch or make your company’s dollars go further. However, there is more to this shifting – if done right – than simply moving a desk here, or a phone there. A plan needs to be drawn up using the building blueprints and pulling in Operations before you begin this type of project.

And if you’ve been considering expanding office space, summer can be a good time to make that growth happen as the smaller in-house workforce will mean minimal disruption to the daily business.

Professional space planning companies, such as Unisource Solutions and MyOffice, can aid in delivering furniture concepts and installation services, among other workspace services.  By working in unison with the company’s representative and the building’s property manager, these companies ensure that the workplace needs are properly addressed.

Repurpose Present Space

If your workforce is out of town, traveling, or otherwise on holiday, consider alternatives to fill your office space. The summer can be a great time to hire new staff members, or part time employees. Recent college grads looking for jobs, students searching for internships, and seasoned professionals may be looking for a bit of change as the season shifts. You may want to take advantage of the season to launch a short-term data, administrative or research project and let the part time staff needed to do those projects fill those empty chairs.

Another idea to think about is whether or not it makes sense to temporarily lease this empty space until the end of the summer. Perhaps a local or national charity has an event in your area and needs a central place to gather and plan. Or maybe a neighboring firm is remodeling and needs stopgap officing. The ideas are worth exploring.

Before considering a sub-lease, be sure to review your lease and approach a leasing agent who is knowledgeable in the submarket.  If you’re unsure how to read your lease or which leasing agent to choose, commercial property managers can be of assistance.  Tim Meissner, a Principal at Meissner Jacquet Commercial Real Estate Services, emphasizes the importance of understanding lease language as Meissner Jacquet’s “commercial property managers are constantly referencing tenants’ leases before making any space-based decision.”  Meissner says that “it can detrimental to both the tenant and building owner (landlord) if decisions are not based on the lease,” as there can be costly consequences.

Consult IT Department

Your information technology department knows more about solving physical office space issues than you may think. They understand ways to increase the productivity in specific office areas and can assist in maximizing energy and efficiency levels. For example, there may be a corner of cubicle space where employees are under-utilizing the resources offered to them. Your IT group can determine which applications may not be needed by particular members of this team – and which are – and help make more efficient use of those resources. Leveraging the expertise of your IT group to better analyze overall space effectiveness can be farsighted.

Consider Building a More Mobile Workforce

A flourishing trend being embraced by many companies is allowing certain sectors of the workforce to work virtually on a full or part-time basis. These groups can include road warriors in the Sales department, employees with intense travel schedules, and contract employees.

Bottom Line 

Space that sits empty wastes money. If your workforce is increasingly mobile and able to work virtually, having them work off site makes solid business sense.

The economy is slowly gaining ground, but watching every expense and leveraging every opportunity to make or save money – repurposing or reorganizing your vacant office space to meet its highest potential – just makes good business sense.

Sources:

NAIOP

Meissner Jacquet Commercial Real Estate Services

What Color Roof Can Take Your Savings to the Rafters?

Research clearly outlines the large number of compelling benefits gleaned from building green. The upfront cost of green construction can be higher than that of traditional architecture but the long-term savings far and away make up for the uptick in initial spending.

As part of the green planning process, investing in the right energy efficient HVAC units is essential. Landscaping that incorporates smart water use is equally important.  But another key direction green building operators should look is up – to the roof.

Sustainable roofing saves money and it can also become a space with the ability to produce profit. Green building initiatives done right include a roofing trifecta that saves energy, generates energy and sustains energy. It’s a winning lineup any way you look at it.

So let’s study the roof.

Summertime is a great time to step outside, look up and consider roofing options for your building. In most climes – including California – soaring summer temperatures can have a negative effect on your commercial building’s operating expenses. But this season of less rain and minimal wind also makes it the best time to go green from the top.

The obvious first step in this ‘smart’ process is to schedule the rooftop reconstruction during a time when fewer employees are on site, working closely with the building’s property management to align calendars.

Next step – consider three key factors: roof color, roof type and roof ROI.

First let’s talk about color, because choosing the right color can result in significant on-going savings. Traditionally, standard commercial properties rooftops are black or dark-colored and often contain asphalt or tar. This type of composition contributes to elevated energy use, poor overall air quality, and increased heat-related illnesses for the occupants.

The better roof composite option is a white or “cool” roof. Cool roofs use reflective materials that draw the best from the sun’s rays, not the worst. The temperature of white roofs can be an astounding 50-60 degrees Fahrenheit cooler than their black counterparts, making them more economical, more cost-efficient and healthier for the building’s occupants.

Another growing green roofing trend is – a growing green roof covered in plants and vegetation. The truth is that this roof type has been around for centuries and, like all good ideas, is just coming back around again. When you create a literally green roof on your commercial building, you are doing your bit to restore natural balance in an urban setting. You can use hundreds of different plant varieties on your roof (numerous grasses, succulents, trees, shrubs, sedums and even wildflowers) based on roof type, size and slope. Make sure you use a roofing company and landscape architectural firm that practices in this specialized landscaping and who will lead you through from concept, design, installation, and all the way to – and through –  maintenance.

Vegetation-full roofs benefit the environment and the building’s residents in many ways by:

  • insulating structures by keeping the heat in during the colder months and the heat out during the warmer months
  • eliminating CO2 from the air and releasing oxygen
  • managing storm water runoff by preserving rainwater
  • greatly reducing the expanse of heat that is soaked up from the sun and then released by buildings back into the environment (called the “urban heat island effect”)
  • helping a building to blend into the landscape around it
  • boosting biodiversity within the urban environment

Cooler yet – some growing roofs cultivate edible vegetation. The Bastille restaurant in Seattle’s Ballard neighborhood grows organic greens on its rooftop. These veggies are then used for salads and sides in the restaurant. This is a very clear example of the direct economic value that some rooftops can have on businesses. And who knows – maybe employees in office buildings may enjoy a rooftop garden in many ways as well.

While white rooftops and green rooftops are both good environmental choices, green rooftops cost a bit more due to the higher installation and maintenance costs. And in intense heat – desert climates – commercial property roofs may not be the best place to grow vegetation. In those super sunny environments, reflective white rooftops are a significantly better option.

In addition to climate and location, another factor that should covered in your roofing decision is the sheer expanse of the roof. Larger spaces will naturally be more expensive to build.

Planning before any capital improvement is key to ensure that costs are budgeted and the most qualified vendors are utilized. Commercial property managers are adept at working with the building owner, tenants, and vendors, and can manage tight timelines while staying within budget.  Kevin Tagle, Vice President of Meissner Jacquet Commercial Real Estate Services, says that three major areas of importance are “Adding Value, Negotiating Expertise, and Organization.”  Tagle highlights that in order to properly manage an improvement, “you must be knowledgeable in building products, costs and techniques, have the ability to expertly negotiate contracts, and exhibit superb organizational and analytical skills.”

Often the best rooftop choices are ones that include both growing green and reflective white elements, making them “multi-colored.” These roofs give the best of both back. They contribute the benefits of vegetation – bringing valued oxygen back into the building environment – and reflected sunlight – directly off-setting climate change.

At the end of the day, though, the type of roof commercial real estate owners, developers or commercial property management firms install depends on that organization’s priorities. Any good commercial real estate professional is interested in a positive ROI and wants to make the best economic decision possible. Sometimes that budget-conscious decision has no room for environmental considerations. Yet most researchers agree it is important for the environment to begin phasing out black roofing as soon as possible. The burgeoning concerns with environmental conditions are driving both users and installers in this direction.

Who would have thought the top of your building could contribute so much to your bottom line?

Sources:

NAIOP

Meissner Jacquet Commercial Real Estate Services

Purchasing Leverage Can Lead to Savings

Meissner Jacquét Commercial Real Estate Services is considered a major account to vendors and insurance providers. This purchasing leverage allows for better pricing negotiation on vendor services and the ability to obtain substantial savings in areas such as insurance premiums and volume purchasing. Meissner Jacquet utilizes vendors that are both national and regional in size, which offer significant cost savings for high volume accounts.  Additionally, Meissner Jacquet ensures that all vendors that are retained are professional and appropriately insured in accordance with each property’s unique business plans.  Below is a vendor Spotlight on 24 Hour Elevator.

24 Hour Elevator, Inc., an owner-operated, independent San Diego elevator contractor, offers outstanding elevator service, repair, modernization, and customer service.  Their mission is to build quality relationships by partnering with building owners and commercial property managers to maintain quality products and services at a competitive rate within budget.

24 Hour Elevator provides preventative maintenance, life safety system testing, and conveyance consultations.

Why choose 24 Hour Elevator, Inc.:

  • High level of customer service
  • Efficient, flexible and accountable
  • Timely response and minimum downtime
  • Represent customers first, not the manufacturers
  • Most professional elevator mechanics in the industry
  • Maintain a large variety of manufacturers’ elevator makes and models
  • 24 Hour Emergency Response
  • Monthly service and maintenance
  • Access to major manufacturers’ parts
  • Competitive pricing
  • Proficient at maintaining modern elevators
  • Specialize in older equipment and modernization within budget constraints

Contact 24 Hour Elevator at 858-279-8900 or visit their website to learn how they can help you.

Sources:

Meissner Jacquet Commercial Real Estate Services

24 Hour Elevator

How to Select the Right Broker

When considering who should represent your vacant commercial space, there are multiple areas to deliberate.  Including creating a long-term, stable environment in which the tenants can conduct their business while maximizing asset operating income.  While keeping in mind, that tenants evaluate a space not only throughout the lease term but also during the negotiation and move-in phases.  This understanding is paramount when selecting a leasing agent or broker.

Patrick G. O’Healy, SIOR with SIOR HQ warns that  making a decision where “relationship elements drive the selection” can allow for a symbiotic relationship, but there are other important factors that must be considered. “Working with someone who listens, communicates well, and is user-friendly” is a good start, but ensuring the candidates are qualified requires a deep look into their qualifications and marketing strategies.

Conducting interviews with the leading specialists within top brokerage firms helps to establish a list of qualified candidates, which can then be reduced to the three most qualified for the assignment.  Below is a helpful guideline when selecting commercial real estate brokers and leasing agents.

Determine Qualifications

  • Obtain an Experience Profile – How long have they been selling and/or leasing commercial real estate?
  • What property type/geographical area do they specialize in?
  • How many transactions have they completed in their career? Obtain a list for the past 12 months with property specific information.
  • What is the character of their brokerage company?
  • Obtain references, including property owners, tenants, and professional service providers (i.e., Escrow Companies) that they have worked with in the past few years – Call them and listen to their feedback.
  • Ask for examples of challenging transactions and how they overcame them.

Important aspects to evaluate when choosing a broker or leasing agent are the transaction costs, such as leasing commissions, tenant improvements, rental concession (if any), lease term, and investment cap rate.  All should offer the most favorable terms to maximize the property value. 

Require an Assessment

  • What are the characteristics of the likely buyers/lessees?
  • How long is it estimated that the property will take to sell or lease?
  • Ask for a list of comparables – properties in the approximate size range that have leased or sold in the past 12 and 24 months in the same submarket, including sale/lease price per SF, buyers, and use. Then determine how closely the comps match a current assessment of the subject property.
  • How is their negotiation expertise and application – in terms of lease rates, pre-paid rent or concessions, tenant improvements, and lease preparation?

Securing tenancy in today’s competitive commercial real estate environment involves much more than responding to requests for information and negotiation.  Diligent efforts must be made to ensure that prospective and existing tenants are attracted and retained through professional responsiveness and attention to detail. 

Identify the Marketing Strategy

  • Obtain a detailed marketing program – If the initial plan does not work, what is the backup plan? Is it flexible enough to respond to changing market and business demands?
  • What is the Marketing Strategy and what tools will be used to accomplish it?
  • Learn what challenges they foresee and how they propose to overcome them.
  • What are the proposed property goals and objectives?
  • What is the tenant approach – how do they communicate with prospective tenants and address their needs?

 Once the selection has occurred it is imperative for the commercial real estate professional to continue to maintain the broker/agent relationship.  Highly experienced third party commercial property management companies can provide leasing agent coordination and oversight as the business interface between agent and owner.  Jerry Jacquet, a Principal at Meissner Jacquet Commercial Real Estate Services, imparts that “given the extensive time and specialized local knowledge inherent in marketing vacant space, many owners turn to Meissner Jacquet to assist in the selection and oversight of a broker / leasing agent that is specifically suited for  a particular assignment, as we have experience in retaining the most knowledgeable and successful third party leasing and sales teams due to our extensive broker relationships.”

No matter how the relationship is structured, the interactions with the broker / leasing agent should establish that the financial impact of the proposed transaction is of upmost importance to ownership and further significantly affects the tenant(s).  Frequent interaction allows ownership to stay apprised of current market lease rates and how proposed tenants’ sales volume and space needs will affect the subject property.

Sources:

Meissner Jacquet Commercial Real Estate Services

SIOR

Hotel Values Forecasted to Increase

As the San Diego economy continues to improve, so too does the local hotel market. The chart below, compiled by Integra Realty Resources – San Diego, shows how San Diego hotels are performing (delineated by full service lodging and limited service lodging).

rate1

In the past three years, hotel property values increased at a significant rate (4%+ over a three-year period). While the rate of growth decreased over the last 12 months (and even decreased slightly for limited service lodging), San Diego Hotel values are expected to gradually increase over the next three years.

The main factor driving an increase in hotel property values is the average daily rate, which is forecasted to grow approximately 5% per year. The average lodging rate in San Diego is approximately $176 per room, which is higher than both the regional rate ($151) and the national rate ($141). This coupled with a high occupancy rate (currently 73.9%) makes hotel properties in San Diego an attractive investment.

rate2

Summary

The outlook for hotel properties in San Diego is positive. The occupancy rate is expected to grow modestly in the next few years, but the average daily rate of both full service and limited service hotel properties are expected to significantly increase at rates of approximately 5% per year. Revenue Per Available Room (RevPAR) is also expected to grow at a rate in line with the historical average (approximately 3%). Overall, hotel values are anticipated to continue to increase in the San Diego market in the near future.

Sources:

Compiled by Integra Realty Resources – San Diego

IRR-logo-large

Retail Demand to Positively Affect Property Values

Based on the Vacancy Rate and Rental Rate Summary table below (which includes market data from CoStar Group compiled by IRR San Diego), the San Diego retail vacancy rate from the last full quarter was approximately 4.3%, which is generally similar to two quarters ago and to one year ago. Over the last three years, the retail vacancy rate has decreased by about 1.7%. The average asking rental rate (on triple net basis) is $22.29 per square foot per year, a 2.34% increase from the previous quarter, and a 4.65% increase from one year ago.

Vacancy Rate and Rental Rate Summary

retail property management

 

 

 

The vacancy rate for the San Diego retail market has overall been relatively low in relation to other property types. In fact, based on a review of the vacancy rate data over the past eight years, the highest vacancy rate was reported at 6%. While the vacancy rate may be higher (or lower) in certain submarkets, there is generally high occupancy for San Diego retail properties.

Overall rental rates have been increasing over the past two years following a period of decline that began in 2008, when the average rental rate was reported to be $25.05 per square foot per year. Rental rates reached its lowest in Q4 2012, where the average was $20.69, a 17% decrease from the 2008 peak. Since then, rates have been increasing at a healthy rate year over year.

Completion and Net Absorption Information

retail property management

 

 

 

 

 

As shown in the table above (which includes market data from REIS, Inc. compiled by IRR San Diego), retail construction slowed in the late 2000’s as the economic recession was felt. By 2011, there was no completed retail properties reported. However, completions resumed in 2012 with approximately 150,000 square feet completed. In 2013, this figure almost doubled with approximately 286,000 square feet of retail space completed. While REIS has reported no completed projects in 2014, CoStar reports that approximately 589,000 square feet is currently under construction.

As with completions, absorption was affected by the latest economic recession with negative absorption numbers from 2008 to 2010. However, San Diego has experienced steady positive absorption for the last three full years and is currently positive in 2014.

Summary

Based on the market indicators above, the overall San Diego retail market has experienced positive conditions over the past three years. Based on the data presented, demand for retail space continues to increase, which will have a positive effect on property values in the near future.

Sources:

CoStar Group, Inc.

REIS, Inc.

Compiled by Integra Realty Resources – San Diego
retail property management, irr

 

Construction Management Experience a Requirement for Property Managers

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Mr. Kelly Purcell, RPA, serves as Senior Portfolio Manager for Meissner Jacquet Commercial Real Estate Services and has over 18 years of broad-based real estate management experience including the management of complex commercial properties involving a variety of financial structures, physical conditions, tenant mixes and investors.

Since Mr. Purcell’s 7 years with Meissner Jacquet, Kelly has advised on approximately 44 construction management and new development management projects. His construction management and new development management experience adds value to Meissner Jacquet’s clients by maintaining schedule parameters and budget targets. Mr. Purcell’s experience as a project manager includes supervising repair and maintenance projects, tenant improvements, and base building and capital construction projects.

Mr. Purcell’s most recent notable construction management project includes the renovation of High Bluff Del Mar, which included the renovation of property’s restrooms, the re-cladding of the common areas with high-end tile, the renovation of the property’s stairwells, the upgrading of property signage, upgrades to the elevators, major landscaping alterations, and the painting of the structure’s interior and exterior. In addition, Mr. Purcell was responsible for the oversight of more than 30 tenant improvement projects throughout the building.

Mr. Purcell’s notable new development management experience includes Bressi Ranch Village Center and Paseo Carlsbad, two distinct retail shopping centers located in Carlsbad, CA. Mr. Purcell’s new development management responsibilities on these centers included management and oversight of property operating plans and annual budgets, vendor contract and tenant lease administration, oversight of building operations, tenant relations and retention, and ownership communication to ensure adherence to financial plans and revenue targets.

Both Meissner Jacquet and Kelly’s goals for every construction management project is to ensure that projects are completed in a timely manner with minimal disruption to tenants and building operations, while remaining on budget. Paramount to every new development management project is to initiate effective and innovative cost saving measures to reduce operating expenses while improving service performance and maintaining a premier property image.

Sources:

Meissner Jacquet Commercial Real Estate Services

Zero-Energy Buildings are the Surge of the Future

Real estate developers, leasing professionals and retailers are always on the look-out for ways to improve tenant appeal, increase tenant retention, and boost consumer sales. Common approaches include, tenant improvements, rent reductions, and consumer promotions.

Besides offering incentives that save on green, many real estate professionals are acknowledging the benefits of going green. Common approaches to embracing green initiatives are by enacting energy management and sustainability measures or to become LEED certified, both of which can offer benefits to ownership and tenants alike. There are pros – think state and/or government-backed incentives and rebates – and cons – lengthy certification processes – to green initiatives.

The well-known retailer, Walgreens, took energy efficiency one step further by opening its first net zero energy retail store in Evanston, Illinois last Fall. Zero energy is what every commercial real estate property owner and property manager dreams about, abuilding whose total amount of energy used on an annual basis is roughly equal to the amount of renewable energy created on site. Hence, zero net energy consumption.

Walgreens zero net 14,000-square-foot retail store harnesses its energy from wind turbines, rooftop solar panels, and a below-ground geothermal system. It is expected to use 200,000 kilowatt hours (kWh) per year and in turn generate 220,000 kWh per year –therefore, making it not only net zero but energy-plus due to the 20,000 kilowatt surplus. It sells the excess energy to Evanston city’s local electric service provider.

Energy efficient design measures at the store include LED lighting, daylight harvesting, carbon dioxide for heating, cooling and refrigeration equipment, and an energy-efficient heat pump developed and manufactured in Europe.

The trend for commercial properties to reduce their carbon footprint is gaining ground, as many energy efficient measures are becoming easier and more cost-effective to implement. For example, rooftop solar panels are easier to install and maintain, and financing opportunities are growing for both the commercial and residential sectors. Electric vehicle charging stations in shopping centers and office buildings are gaining momentum as consumer demand for energy-efficient cars continues to increase.

Meissner Jacquet Commercial Real Estate Services, a San Diego-based real estate management firm, is at the forefront of the energy management and sustainability trend by recently assisting a client with the installation of multiple electric vehicle charging stations at the owner’s retail centers located throughout Southern California. Jerry Jacquet, a Principal of Meissner Jacquet, advises his clients on the importance of energy efficiency. Jacquet says that “it’s especially important as California’s Assembly Bill 1103 mandates commercial property owners to disclose energy usage at the time of sale, lease to a single tenant or refinance, and this directly affects many of the property owners that Meissner Jacquet works with.”

Top this off with state and/or government-backed incentives, and it wouldn’t make sense not to invest in green initiatives.

Net Zero isn’t limited to retail developments such as Walgreen’s, DPR Construction’s regional office in Phoenix was conceptualized as a “net-zero energy workplace of the future,” a physical tribute to urban revitalization and sustainability. The construction company incorporated passive/active cooling solutions including operable windows, shower towers, solar chimney, and a photovoltaic solar panel covered parking lot to control the indoor environment and produce on-site energy. The office uses 129,624 kWh per year and generates 142,871 kWh, resulting in a net energy use of -13,255 kWh– making it energy-plus.

Meissner Jacquet Commercial Real Estate Services works with its clients to enact energy management and sustainability measures at the commercial properties it manages. Jerry Jacquet, a Principal at Meissner Jacquet, notes that “although it is costly to enact larger sustainability efforts, it will prove to be an industry norm in the coming years.” While Europe has paved the way for green initiatives, the U.S. is taking steps to retrofit existing buildings and incorporate LEED standards into new construction. Jacquet says that “the goal is to create smart buildings that will positively impact the environment and future generations’ quality of life.”

Sources:

NAIOP Development Magazine Summer 2014, Walgreens Opens First Net Zero Retail

Store in U.S.

Living Building Challenge, DPR Construction’s Phoenix Regional Office

CNBC, 7 Bold Commercial Real Estate Predictions

Meissner Jacquet Commercial Real Estate Services