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Who said raising money is difficult in this environment? Shangri-La Industries and Thompson National Properties have raised a $100 million fund for making existing buildings more energy efficient. While there aren't a lot of specifics behind the deal, these investors show a lot of confidence in greener buildings translating into more valuable buildings. It's great to see a fund being raised in this climate, and it's great to see a unique focus on retrofitting existing buildings, an area that certainly needs improvement. |
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Building Automation Systems |
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One way to help drive down electricity costs in existing buildings is with the installation of a building automation system, particularly one that uses Power Line Communications (PLC). This technology is much easier for landlords as it doesn't require installation of new wiring facilities. The benefits are clear - building owners may see savings between 20 and 40% annually on their electric bills. One question left unanswered in this article is how the systems will be operated. Any new technology in the building will require either different resources or some additional training for existing personnel, many of whom may already be taxed with their existing work portfolio. But once these operational concerns are managed, the building owner will have a powerful system. |
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The Department of Energy has developed a new initiative to focus on zero energy buildings, the National Laboratory Collaborative on Building Technologies. The program will take a comprehensive approach, looking at advanced efficiency technologies as well as development of on site energy generation systems. The stated goal is for these buildings to come online by 2025. This sounds like a long time, but to create a true zero energy building will be a significant change from today's status quo. But there's a big payoff if this happens, particularly with office buildings. |
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A new study by Deloitte and Charles Lockwood (via Greener Buildings) reviews both the benefits of green retrofits and the motivations of real estate decisionmakers. The study does a great job of putting retrofits in context with one simple statistic - for every one new building there are one hundred existing. So despite significant progress in new LEED certified buildings, that in and of itself willl never make a real impact across all commercial buildings. One encouraging sign is that many respondents in this survey highlighted the less tangible benefits of retrofits - employee productivity and satisfaction, corporate strategic values, etc. - which means real estate professionals are starting to grasp not only the ongoing cost savings but the greater value of going green. |
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Counties Leading Green Effort |
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As counties across the US are significant building owners, it's very positive to see a large increase in the number of green buildings over the last five years. This reflects deep policy dialogues, interaction with public and private agencies, and simply getting it done. But the work isn't over by any stretch - the total number stands at 39 sites (vs. 8 in 2003), so adoption from the next group of counties will be required to continue driving this trend. |
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