Services

Energy Solutions

Commercial real estate is now entering a new cycle of transformation… from energy indifferent to energy committed. Why? Compelling economics and market demand.

It’s not hard to imagine that in a few years from now, buildings that operate 50% more energy efficient (using 50% less electricity), powered by energy systems off the electric grid (via solar, wind, etc) and with fixed annual electric costs (no annual price escalations) will be in greater demand. As a result, they will command a lower CAP rate at time of sale. Further, industry trends show that tenants prefer / demand to be in a “green” building and they are willing to pay a rent premium.

There is a broad spectrum of benefits that define a “Green” building vs. a LEED certified building. For purposes of this review, we’ll only focus on the “energy” related components of a “green” building.

The total cost for building an energy efficient “Green” structure is rapidly decreasing, as the industry begins to implement new and proven design and construction methodologies. In fact, they are now almost neutral in terms of additional cost to build green – energy efficient. Further, the industry focus is now on specific building materials, renewable energy systems, day lighting and other solutions to increase energy efficiencies.

Sustainable energy design services have come to be in high demand by developers who have been well informed by media coverage of the building environment and health related issues. It seems that the general public, as well as many in the design community, are also fully embracing the idea of building Green. However, the reality is that successful green design needs to consider the economic impact, not just the environmental impacts in the decision-making processes. Our energy consulting team provides just that guidance.

Economic Inducements:

The Federal Government has implemented a program that provides the entities owning qualifying buildings a tax credit of up to $1.80 per square foot. The requirement to secure the tax credit involves improving energy efficiencies for three measurable items,

1.Building envelope - 16.67 % improvement in efficiency needed. Improving the building envelope involves reducing the energy (heat or cooling) dissipation through the floor, walls, windows and roof. New construction methodologies involving roof design, wall insulation, can improve the energy efficiency (reduce heat or cooling loss) by up to 50%. That improvement can reduce utility costs (associated to heating – cooling) by an equal amount.

2.HVAC system - 16.67 % improvement efficiency needed. Reducing the energy needs of a building by 50% or more means that the HVAC system size can be reduced an equal amount. Further, new HVAC technologies reduce energy use.

3.Building lighting systems - 16.67 % improvement efficiency needed. New “green” state-of-the-art lighting systems and bulbs use much less electricity than conventional systems.

The goal of the initiative is to reduce building energy consumption by at least 50%. This is a challenging but achievable goal.

Bedford engineers support this energy efficient goal by managing the alternative energy process from start to finish. We work with our developer clients to help them assess the construction methodologies building components and operational issues. Our process enables us to determine the probability of the building achieving the 50% improvement in energy efficiency and thereby securing the $1.80 / sf tax credit.

Benefits... lets evaluate the impact of building “green” on a 100 unit apartment building. On average, an average apartment spends about $110.00 per month for energy (electricity, gas, oil, etc). Of that, about $60.00 per month is spent on heating, cooling and ventilation. Building “Green” will likely reduce the monthly costs for the apartment by $35.00 - $40.00. The tenants pay less, making the property slightly more economically competitive and the property is “Green”, another marketing plus.

Making an existing building more “Green”, i.e., energy efficient, is sometimes challenging… However, there are numerous federal, state, county and utility company inducements that are quite site specific. Our energy consultants can assess the opportunities, costs and financial incentives available.

Energy Generation

The most commonly utilized energy generation solutions involve; solar, wind and geo-thermal systems to generate electricity.

Solar: Is the most widely used commercial alternative energy solution because of its comparatively low cost and low maintenance - operating metrics. Our energy consultants evaluate all aspects of the installation, costs and ongoing operations and provide a “net cost” analysis. Often, our clients like the operational and economic benefits of being somewhat “off Grid” and being their own utility company.

Our energy consulting – project management team provides unbiased project / program management services that will help building owners and construction professionals identify the optimal energy solutions. Further we oversee the implementation of energy solutions as well as obtain all the governmental and utility company rebates and incentives