CREJ

A s most commercial real estate professionals know, occupancy is a major con- cern for office property managers and owners. After all, high vacancy rates drag down rents, along with the build- ing’s net operating income. A new state program can help. It’s called Commercial Property Assessed Clean Energy, and it can boost a property’s competitiveness by improving tenant comfort, low- ering energy costs and advancing sustainability. • What is Colora- do C-PACE? A pro- gram of the New Energy Improve- ment District, Colorado C-PACE makes it possible for commercial building owners and real estate developers to obtain affordable, long-term financ- ing for energy efficiency, renewable energy and water conservation improvements. Anything that saves energy, creates energy or saves water is eligible, as long as it will be permanently affixed to the property. • How does C-PACE benefit prop- erty owners? C-PACE funds up to 100 percent of a project’s costs – both hard and soft costs may be included – so there are no upfront, out-of-pocket costs. The terms are commensurate with the weighted average estimated useful life of the improvements, which can span up to 25 years, making it highly affordable. The financing is secured with an assessment on the proper- ty – similar to a sewer assessment, except that it’s voluntary – so the owner is not required to sign a per- sonal guarantee, and the assess- ment, which is billed and repaid along with the property taxes, may be transferred to a new owner in the event of a sale. This latter benefit is particularly attractive to investors, who often won’t hold on to the property long enough to real- Please see Page 20 Grace Clawson, Cymax Media Ogilvie Properties will use C-PACE financing to modernize this 97,395 square-foot office property in Denver. March 2018 C-PACE program finds favor with property owners, investors INSIDE Leasing market PAGE 11 Design highlight PAGE 15 Project spotlight PAGE 14 As lease rates rise in Denver’s most popular areas, where are companies finding relief? Biophilic design taps into the innate human tendency to associate with nature. The newest office building in Denver’s skyline, 1144 Fifteenth, took two decades to be realized. Tracy Phillips Director, Colorado C-PACE, Lafayette