Comstock's magazine 0419 - April 2019 - Page 97

| HIGH PERFORMANCE | Cassil admits living buildings are expensive. “The existing [material] in- dustries that support the building in- dustry are built around doing things the old way,” he says, but there is a learning curve, and the more zero net energy and living buildings that get built, the more the industry will adapt. “The Living Building Challenge at its core is about shifting those industries toward something that is more regener- ative,” Cassil says. “And every time a liv- ing building is done, the material vetting, that material is uploaded to the ILFI’s da- tabase and made available for the next project,” making future projects easier and more accessible. Put simply, says Docous, “Experience informs the next generation.” While development like Architectur- al Nexus’ is still expensive, “green” build- ing proved long ago to be profitable. In 2000, Craig Sheehy, now president and CEO of Envision Realty Services, was with Thomas Properties Group and worked on the CalEPA building at 10th and I streets. “As the building was completed and I was running operations, and as the months started going by, and financials were coming out, we were saving close to a million dollars a year in operating expenses,” says Sheehy. “I thought, ‘My gosh, I’ve found the holy grail of property management. This is not just good for the environment. This is good for business.’” That was nearly two decades ago, be- fore technologies and devices like ther- mal and light sensors, which increase energy efficiency and performance, were readily available. These buildings are just more market- able, experts say. When tenants consider two buildings, one “brown” and the other “green,” that’s the tiebreaker, says Sheehy. Docous agrees, adding it’s partly a generational shift. “What people expect in the workplace is a different style of working,” he says, “and the workplace is starting to accommodate that.” Industries are adapting to new de- mands by creating new technologies. For example, says Sheehy, tall buildings have larger footprints but less surface area for solar panels, so companies are starting to make solar glass. “It’s new technology, so the costs are high, but we know that they will come down over time,” he says. Another strategy is rethinking cur- rent spaces and available resources, says Sheehy, “like applying solar on surface parking. Also, every building I’ve ever done, whenever we dig into the earth, we always hit groundwater, which is typical- ly pumped into a storm drain.” But now companies are engineering ways to use groundwater for landscape irrigation or other practical purposes. And while innovation and com- mon-sense strategies stand to help the environment, energy efficient structures save, on average, about 20 percent from ® FIRST BANK WISDOM : Never let the size of your business get in the way of a big opportunity. Let’s seize the day. First Bank Commercial Real Estate • • • • • • • • • • • Collaborative, hands-on approach Dedicated local team 1-10 Year terms Loan transaction sizes $2 million - $30 million Up to 75% Loan to Value and 80% Loan to Cost Competitive floating and fixed interest rates Acquisition Financing Permanent Financing Lines of Credit Construction Lending Bridge Financing firstbanks.com Asset Classes INSTITUTIONAL MIXED USE OFFICE SELF-STORAGE HOSPITALITY INDUSTRIAL RETAIL MULTI-FAMILY Tom Lynn Sr. Group Manager 916-783-1225 Tom.Lynn@fbol.com CM - Comstock - CRE.indd 1 Lindsey Fudge Sr. Vice President 916-783-1205 Lindsey.Fudge@fbol.com Laurence Hughes Sr. Vice President 415-273-2082 Laurence.Hughes@fbol.com April 2019 | comstocksmag.com 97 3/14/19 2:55 PM