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Page 24 — Property Management Quarterly — April 2020 www.crej.com buildings, and Passive House are all compliance options within the Denver Green Code. Other items of interest in this code include require- ments for water metering, dual piping, daylight analysis, indoor air quality testing and a whole lot more. Code changes are the most effec- tive instigator of city and statewide change. Financing options are avail- able to reduce the costs of these new codes and policies such as Commer- cial Property Assessed Clean Energy financing, tax credits and utility Demand Side Management programs. Denver is taking a leadership role in combatting global climate change with the launch of the GBO, Energize Denver and many new progressive codes amendments. You can expect many jurisdictions in Colorado and beyond to follow suit. s Azerbegi Continued from Page 8 n Looking to alternative asset classes or tertiary markets. Class B and C office, for some investors, has been an over- looked segment with substantial oppor- tunity to generate competitive yields. Although assets in this class may not be generating the rental rate premiums found in AA/A, owners willing to invest in these assets will find opportunities for strong leasing activity, consistent tenant retention and desirable internal rate of return.This practice was further vindicated by a report from the Build- ing Owners and Managers Associa- tion assessing the opportunity hidden within the Class B/C office segment. By leveraging initiatives that drive energy efficiency and incorporating green leas- ing, the study found that owners can see a 2.4 to 5.6% increase in net operat- ing income and increases in asset value upward of $11 per square foot. n Nontraditional approaches. Lever- age technology as a resource. Owners should have an asset technology asset plan for their portfolio. Cloud-based Internet of Things solutions, along with the ability to utilize data-driven analyt- ics in your operational strategy, should become a common place practice.These types of platforms have proven to make major reductions in outsourced mainte- nance and repair costs, improve tenant satisfaction and retention, lower energy costs, and lower property management costs through increased coverage of building operators. In addition, a technology plan should consider your environmental, social and governance policy. Having quick and easy access to environmental data will be a must and tenants are continuing their focus on a building’s environmen- tal impact. Looking forward it is almost a certainty that asset types will have ESG ratings or scores so tenants and/ or buyers can compare which buildings have the lowest or most regenerative impact on the environment. n Looking forward. Until COVID-19, we were in the 11th year of economic expansion supported with strong mar- ket fundamentals.While the economy is full of uncertainty, only time will tell the implications from outside shocks continuing to unfold. However, we can consider performance as relative to other trends indicating how the econ- omy will react or how it will bounce back. Considering debt levels in com- mercial real estate today as compared to back in 2008, owners are much better positioned. If the shock is short term in nature, owners/borrowers are in a safer position to weather a temporary dis- ruption. As we all continue to see how these shocks will play out, one thing is certain: These approaches can help investors strengthen their returns no matter the economic climate. s Kiper Continued from Page 14 CBRE Research, U.S. Federal Reserve Board, CBRE Econometric Advisors, October 2019. good.We want a collaboration so the expectations are set from the begin- ning and we don’t ever proceed down the wrong path. It’s when the budget is unrealistic to the plan that problems occur. Since we never want the quality of the product to suffer, the only thing left to tackle is cost and schedule. If you want to push for a lower budget then you will need to give the GC plen- ty of time to complete the work. If you want to push for an unusually quick schedule, then there will be overtime, quick-ship, material substitutions due to lead time issues and other items that drive up the cost. I always like the reasonable schedule because you will then get reasonable cost and high quality. If the lease gets delayed or the design takes longer than planned, this will affect something. I know sometimes it’s unavoidable but then remember, you can’t have your cake and eat it, too! Author’s note: Please note this article was written prior to the coronavirus pan- demic crisis. The situation is fluid and changing daily and it is impossible at this time to quantify the impact both from a time and cost perspective. s Boots Continued from Page 18