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March | April | 2016 CCIM.com
the operational assessment, it is important to
clearly communicate your client's investment
goals and request case studies and references
to ensure the company selected has expertise
in reducing utility costs through operational
improvements, as many companies target
capital-intensive equipment upgrades.
Many owners are wary of additional con-
sulting fees and the capital required for build-
ing improvements, but a qualif ed profes-
sional can typically identify savings in many
multiples of their fees, even if the building is
a high performer. Before signing a contract,
provide the consulting company with build-
ing drawings, maintenance records, utility
benchmarking data, and other supporting
documentation. Request that they demon-
strate the business case for their engagement
based on past experiences with similar build-
ings. Select a company that can look beyond
the physical condition of the building and
identify operational improvements.
Once the operational assessment is com-
plete, identify no-cost operational improve-
What's What?
The U.S. Department of Energy's Asset
Score complements the Energy Star
Portfolio Manager tool developed by
the Environmental Protection Agency.
A Portfolio Manager score enables the
comparison of buildings based on their
energy consumption, as indicated by
actual energy bills. The Portfolio Manager
score refl ects the energy effi ciency of
a building's physical structure and its
systems, as well as how effi ciently it is
operated and maintained.
The Asset Score refl ects the energy
effi ciency of a building based solely
on its design, construction, and energy
systems. It normalizes for operational
and occupancy factors, enabling users to
identify specifi c opportunities to invest
in energy upgrades. Using both tools
gives users powerful information that
can inform both energy upgrades and
improvements in building operations.
ments for immediate implementation and
those to underwrite into the transaction.
Request that the consulting company develop
a detailed project implementation schedule
that is aligned with your client's investment
goals. T is strategy will ensure project fund-
ing and implementation, quickly increase
NOI and asset value, and may improve rental
rates, tenant comfort, and retention.
Building operations should not be over-
looked during the due diligence process.
Analyzing property utility performance
and underwriting low-cost operational
improvements can provide signif cant value
to buyers across all stages of the ownership
cycle. Including this strategy in your pool
of resources can dif erentiate your services
and build long-term value for your client
beyond the transaction.
Jeff Yetter, CCIM, LEED-AP, is a real estate bro-
ker and partner at Breea, a building operations
consulting company. Contact him at jyetter@
breeabuildings.com.
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