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Page 2 — Property Management Quarterly — May 2015
CONTENTS Letter from the Editor
E very week it seems another
Colorado building is recog-
nized for LEED certification.
In fact, in 2014 Colorado was
second in the nation for LEED
green buildings, according to the U.S.
Green Building Council. LEED-certi-
fied buildings use less energy and
water resources,
save money, reduce
carbon emissions
and create a health-
ier environment,
according to the
USGBC.
LEED is even more
on my mind after I
attended the USB-
GC’s Rocky Moun-
tain Green Conference in early April.
One topic that came up several times
throughout the event was the intan-
gible benefits of LEED certification. In
a panel about next-generation energy
management, Adam Knoff from
Unico Properties shared the perspec-
tive of how investors view sustain-
ability projects, as well as the finan-
cial metrics to which investors pay
attention. The tangible cost savings
as they relate to a building’s opera-
tional, maintenance and administra-
tive cost are very important, he said.
However, the intangibles – increas-
es to occupancy, increased tenant
satisfaction and improved productiv-
ity, and positive reputation – are hard
to show on paper. There’s not enough
data to show that these intangibles
are really impacting the investment,
he said.
In a later panel, a speaker said that
while owners now recognize the
benefits of certification, in large part
due to a cultural shift, typically they
still like to see the payback in a two-
to three-year window. And while
the certification can create a higher
asset value and keep a building com-
petitive, in Colorado’s hot market it’s
challenging to see how much people
care specifically about the certifica-
tion and how it affects tenancy.
In the coastal markets, properties
with LEED certification can demand
higher rental rates, but that hasn’t
happened here yet, said Eric Weisen-
stein of Transwestern.
I left the conference with another
takeaway – when pursuing certifica-
tion or recertification, it is smart to
work with a consultant. Four proper-
ty managers on a panel all resound-
ingly and repeatedly stressed this.
Consultants are valuable to help
navigate the required documentation
and aid in a smooth, productive pro-
cess. They can help determine what
certifications and credits a property
should plan for, and consultants have
strong relationships with the certifi-
cation teams. One manager said that
in order to properly become certified,
managers have to follow a “perfect
recipe,” which consultants under-
stand better than anyone else.
I hope you’ll find this issue to be
chalk full of useful information,
including a sustainability highlight
as well as a wide variety of other top-
ics. As always, I must thank all those
who participated in this issue. And I
welcome your feedback.
Michelle Z. Askeland
303-623-1148, Ext. 104