CREJ

Page 20 — Office Properties Quarterly — December 2018 www.crej.com ...and much more! CAM Services is Proud to Offer the Following Quality Services Multiple Service Discounts Available Power Sweeping Parking Lot Sweeping Snow Removal Day Porter Services Tenant Finish Interior/Exterior Building Maintenance Power Washing Power Scrubbing Fence Repair $10 Million Insurance Umbrella Storm Water & Erosion Control Signage Repair Curb & Sidewalk Repair Parking Blocks Construction Clean-up Water Damage Clean-up Property Security Temporary Fencing Barricades Rubber Removal GSE Maintenance Event Services Silt Fence Fully Bonded Phone: 303.295.2424 • Fax: 303.295.2436 www.camcolorado.com 24 Hours A Day, 7 Days A Week! State of the art equipment, with GPS tracking for your convenience. annual company profit, and an NPV of $17 million over 10 years at a $20 per sf cost premium. Annualizing the cost of a build- ing, multiple reports show only 1 to 4 percent of the total price goes toward the initial design and con- struction. For the other costs, a company will spend 80 to 92 per- cent on people in the form of wages and benefits, and 6 to 15 percent on operations and maintenance. The combined benefit demonstrates a near single-year simple payback period for the conservative cost pre- mium assumed. Cut the benefits of a high-performance building by 50 percent and companies could retain a two-year simple payback period. Because high-performance build- ings enhance productivity, increase retention, and improve employee health and wellness, as well as cut operating expenses and improve resiliency, they bring in a larger return over the life of the invest- ment. Ultimately, no matter the cost to build a high-performance build- ing, the continuous benefits are large enough to outweigh the initial cost over the life of the investment. Although utility and maintenance cost savings are the most frequently cited benefit of high-performance buildings, they offer some of the smallest financial value. The largest, yet widely unrecognized, benefits of high-performance buildings come in the form of more productive, satis- fied and healthy employees. Given this breakdown, human-centric design should be a critical consider- ation when creating a high-perfor- mance building. V Attema Continued from Page 9 Sensitivity analysis on cumulative benefits due to high-performance buildings. Further, consider how the rapid changes in office culture line up with the continuous push for more amenity space. The rising popu- larity of the “agile” workplace in which employees can choose where to work in any given office now extends beyond a company’s walls. That is, employers who do sup- port free-address and no-boundary workplace strategies now include a building’s amenity space as an extension of the company’s own real estate. This is not a concept. It’s already in wide practice, and why wouldn’t it be? Those tenants are paying for the “extra” space, so why not use it? It’s only been a little over a year since the 2017 standard was rolled out. The newest work strategies and associated hybrid office designs still are in their infancy. BOMA cer- tainly has done its homework by pinpointing larger and better ame- nities as new sources of revenue at the precise time when the demand for them is in a steep incline. And clearly, that demand isn’t going away anytime soon. Tenants and their representatives could do well by understanding that embrac- ing these changes is a short-term trade-off for long-term value. V Jenkins Continued from Page 11 capital-intensive improvements at their properties. • Participating new construction proj- ect developers. Applications for new construction C-PACE financing con- tinues to grow. This growth is being led by PACE project developers who specialize in new construction. PPDs have played an integral role educat- ing the development community on the potential for C-PACE financing to fill gaps in their capital stack, lower weighted average cost of capital, and ensure high-performing energy- efficiency improvements are not value engineered out of their projects. C-PACE financing as a component of new construction project capital stacks has ranged in size from $1 mil- lion to $4 million. • Participating counties. Twenty-one Colorado counties are now participat- ing in the C-PACE program. Notably, these counties represent over 70 percent of the state’s eligible com- mercial and industrial building stock. In addition, grassroots efforts led by community leaders, property owners and project developers are working to bring four more counties into the program. Moreover, a special effort is ongoing to engage the hard-to-reach and historically underserved areas of Colorado. • Looking ahead. The collaborative efforts of the key stakeholders noted above made 2018 the break-out year for the Colorado C-PACE program. As a result, the program is poised for exponential growth in 2019. As noted in this year-end summary – Colorado C-PACE offers a unique value proposi- tion to property owners with needs for energy-efficiency-related improve- ments. Moreover, a highly competent and experienced ecosystem of con- tractors, project developers and capi- tal providers is now in place to enable property owners to take advantage of this exciting new tool. V Phillips Continued from Page 14