Colorado Real Estate Journal - September 2, 2015
For every new building hitting the streets today, over 100 are 20 years old or older. And if you’re in an older model, you’re at a disadvantage to your competitors in newer, shinier and more efficient spaces because they cost less to operate than yours. Energy codes that feed building codes have stepped up significantly in the last 50 years, and yet much of the nation’s buildings come from that era or earlier. Multifamily buildings built in the 1990s are almost 9 percent more efficient than buildings of the 1980s, 17 percent more efficient than those built in the 1970s and 1960s, and 23 percent more efficient than pre-1960 housing. (Matthew Brown and Mark Wolfe, “Energy Efficiency in Multi-Family Housing: A Profile and Analysis,” Energy Programs Consortium, June 2007.) And multifamily building requirements mirror what’s gone on with residential, office and retail. So don’t let building owners or landlords saddle you with their inefficient buildings, leaving you on the hook for costly operating and maintenance bills. The rent may be low, but there are probably several reasons why, including system obsolescence and deferred maintenance. That could erase (with a rebate) any rent savings you think you’re getting. Here are some great questions to ask before you buy or rent, and many of these apply to both commercial and residential buildings. How old is the HVAC system and what is its efficiency rating? Most building inspectors will scare up this information in an inspection, and it’s crucial to pay attention if you pay any part of your utility expenses. Efficiency ratings are a best-case scenario in factory-perfect conditions – how much of the energy needed for heating or cooling actually reaches building occupants? (SEER [seasonal energy-efficiency ratio] for air-conditioners and commercial HVAC systems, and AFUE efficiency for residential furnaces.) And don’t forget, old efficiency ratings don’t function anywhere near what they say they do today. On the heels of that question, who pays for repairs? Remember Eldon the painter on the “Murphy Brown Show” in the 1980s? He was Brown’s perpetual houseguest with an unending stream of work. If you move into a building with old systems, your HVAC repair tech may become your Eldon. Old HVAC systems rarely die – they live on life support forever. Nothing may light a fire under your landlord for HVAC upgrades faster than requiring him/her to pick up repair bills. And be sure to find out if the building owner is responsible for maintaining the system. HVAC systems are like cars – take care of them, and they will operate efficiently for longer. Insulation levels. That fab exposed brick wall in your office may be the coolest thing ever. And the coldest. Brick has little-to-no insulation value, and neither does glass. Do you know what levels of insulation the exterior of your building has? Insist on an R-value (insulation level) of at least 20, which is code in many places. If your building doesn’t have at least that, you'll be on the hook to pay higher energy bills as you’re cuddling under blankets at your desk, or sweltering in summer. Spaces in between. Ceiling plenums are the spaces between false, dropped ceilings and floors or roofs above. In much commercial construction, builders use that space as a return air cavity because it’s cheap to build. But plenums are also inefficient because they are usually much colder or warmer than the temperature-controlled spaces below. If your landlord won’t “hard-duct” plenum spaces, make sure supply pipes are well-insulated. Otherwise, they lose temperature from the HVAC to your space. You pay for that. Windows. Are windows single-pane? If so, they could be leaking air like sieves. This is especially true in retail spaces, which often have big glass plates to display wares. Don’t let an owner say that the building is historical and windows can’t be changed. There are plenty of window upgrades owners can make that preserve the historic character of a structure. Also, look for “low-e” films, which can significantly reduce the amount of the sun’s heat pounding a building. Let there be light. How are the lights in your space? Efficient lighting can save as much as 40 percent on energy costs, and light retrofits are often one of the least-expensive fixes with the biggest returns. “T-value” measure one-eighth of an inch. So T-12 fluorescent lights are 1½-inches in diameter. T-8s are 1 inch. Simply, T-8s and T-5s are more efficient than T-12s, which aren't even available anymore. If you really want to cut down on your lighting expenses, go LED. They use one-tenth the electricity of older, less-efficient fixtures and usually pay back within two to three years. Plus, they look amazing. Building or energy management systems. These can be as simple as programmable thermostats or as complex as building systems controlled from across the country via computer. Studies show that if you work with a programmable system and use it, you can save as much as 15 percent on energy costs. If you’re already in an inefficient building, insist on changes when you renegotiate your lease as part of your tenant improvements. You have the power – use it.