Commercial Investment Real Estate July/August 2019 | Page 22

CCIM
EDUCATION
Making
the Most of
Using Less
Sustainability practices offer commercial real estate
a triple bottom line — one that is concerned with
economic, social, and environmental performance.
F
ly into any decent-sized airport, day or night, and you’ll
see what is meant by the built environment. The roads,
the buildings, the power lines — these structures all
combine to be a part of modern development. Focus-
ing specifically on commercial real estate, think of the vast array
of built environments, including manufacturing, education, and
medical services.
But construction has changed in the recent years. We are not
in an unbridled era of building as much as possible as quickly as
we can. Sustainability is a prime directive.
Today’s construction industry operates with a triple bottom-
line perspective:
1. Construction must be financially sustainable. It must provide
a revenue stream to support growth and further development.
The business, after all, is still focused on profit.
2. Structures must be environmentally sustainable. A building,
for instance, must reduce energy usage and try to meet LEED
standards for reduced carbon emissions.
3. Finally, construction must be socially sustainable. Projects need
to provide jobs for a community, to financially support the
population. The concept of corporate citizenship, for example,
emphasizes the social responsibility of conducting business.
Here are eight common methods of reducing consumption,
eliminating waste, and minimizing energy usage:
Eco-friendly toilets: The U.S. Environmental Protection
Agency’s WaterSense, like its more well-known EnergyStar pro-
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gram, recognizes toilets that are 20 percent more efficient than
conventional 1.6-gallon models. Low-flow and dual-flush systems
are other ways to minimize water usage.
Waterless composting toilets are becoming a more feasible
option in commercial settings, though city and county regula-
tions often require permits.
Recycled insulation: While formaldehyde is no longer added
to insulation in the U.S., fiberglass-based products require more
energy to produce than insulation produced with shredded news-
paper and denim. Denim insulation offers improved indoor acous-
tics but costs about twice as much as fiberglass products.
Bamboo flooring: Varieties of bamboo now grow in many of
the lower 48 states. It’s a fast-growing plant, with a harvest cycle of
four years, compared to 60 or 70 years for traditional hardwoods.
It can be cheaper than traditional hardwoods, is equally durable,
and can be recycled into other products.
Porous paving: Permeable pavement catches precipitation and
surface runoff, storing it in a reservoir so it can slowly infiltrate
the soil. While the modified paving costs approximately 10 to 20
percent more and requires steady maintenance, it improves drain-
age and limits demand on stormwater infrastructure.
According to a U.S. Geological Survey, “[p]ermeable pavement
is one type of green infrastructure practice that functions like
traditional pavement for parking lots, sidewalks, and roadways
but also allows for treatment and management of stormwater
near its source.”
COMMERCIAL INVESTMENT REAL ESTATE
by Eric Holt