Wednesday, January 25, 2012
Commercial brokers must be knowledgeable about many different disciplines: law, construction, engineering, finance, negotiation, and more. This week, we continue our “Going Green” series with an expert post by a HVAC expert. Stay tuned, next week, for information about commercial cleaning.
The following is a guest column by George Peters, LEED® AP, Senior Mechanical Engineer for the H.B. McClure Company.
“Green Building” is a broad term which has many different interpretive definitions, depending on one’s professional perspective. Mechanical contractors are often asked to provide green options to clients. This poses some difficulty in meeting that expectation, without first reaching collective agreement on the goal. Our challenge is to help building owners meet today’s advanced comfort needs without ignoring tomorrow.
Generally speaking, most mechanical goals fall into two categories;:reducing energy use (expense) and conserving water. Owners’ financial budgets and their personal motivations combine to determine ‘how green’ a particular project will be. In most cases as you slide up the green scale the installed cost increases while the annual operating expense decreases. This balance between first cost (budget) and operating expense (payback), when coupled with owners’ expectations, is the equation that needs solved for a project to be successful.
To some, ‘green’ means employing renewable energy technology provided by geothermal or solar equipment. To others it simply means approaching the project to maximize efficient energy usage. In today’s economic conditions it is imperative that we look at the entire building, as system. Building insulation and envelope, lighting strategies, and the mechanical system design all play a role delivering to clients a property that is environmentally responsible, comfortable and financially efficient to own and operate.
Not every construction budget can afford THE most efficient system. But there are several incremental steps that can be taken on even the most basic HVAC system approach to enhance operational performance and achieve some measure of sustainable, green building objectives.
First, consider upgrading from the base low-bid equipment. Most manufacturers offer high-efficiency alternatives to conventional rooftops and split systems. For a very modest additional cost, investing in equipment that exceeds ASHREE/DOE minimums can yield large savings over the life of the system. Increased comfort and much lower operating costs can be achieved in the use of multiple-stage equipment that matches the demand load during non-peak conditions.
Next, explore the benefits of integrating a controls strategy into the system. Huge operational efficiencies can be gained by staging and/or modulating equipment when applied to an intelligent Building Automation System (BAS). Temperature setback, thermal averaging, and zone priority offset are a few strategies employed to reduce peak electric demand and limit energy expenses. Demand fresh-air ventilation control provides excellent comfort and indoor air quality (IAQ) at lower operating costs. Also remember to consider the space set-point temperatures. Raising an AC set-point 1 degree not only saves operating expense, but might allow a reduction in the overall capacity of the unit, thus reducing the first cost.
Owner-occupied projects typically can be approached differently than those being built by 3rd party real estate investors. A client with a shared interest in not only the long-term debt service for construction costs, but the on-going building utility expenses as well as is more likely to look at the life-cycle costs of system ownership. Schools and senior-living projects are examples of this type of project.
In these instances, a compelling case can often made for investing in high-end renewable energy systems such as geothermal. In viewing these systems on a cash-flow basis it is not uncommon to show that the operating cost savings exceed the additional financed expense of the upgraded costs. When viewing the additional system costs as a return on investment (ROI), realized payback of less than five years is possible.
Long term satisfaction with any system, including a green system, requires quality control and maintenance. Quality control, also termed commissioning, helps insure that the system designed is actually installed. Maintenance, or more specifically preventive maintenance, starts with the completion of construction and continues for the life of the building, with its goal being the continued efficient operation of the systems. Neglected systems will degrade over time and increase the service and operating costs.
The ultimate selection of a ‘green’ mechanical system is a collaborative result of communication between the client and mechanical system engineer. Energy saving components need to be financially weighed to ensure they are viable. This is the key to creating a successful strategy for sustainable design.
George Peters, LEED® AP is the senior Mechanical Engineer for the H.B. McClure Company. He has held this position for over 15 years and has been responsible for designing and building over 400 facilities that utilize geothermal energy and water sourced heating and air conditioning technologies. George is also heavily involved with the local ASHRAE and USGBC Chapters where he contributes his time and leadership to raising the bar on efficiency in green buildings.
Wednesday, January 18, 2012
Commercial brokers must be knowledgeable about many different disciplines: law, construction, engineering, finance, negotiation, and more. This week, we continue our “Going Green” series, with a blog about recycling. Stay tuned for information from HVAC and commercial cleaning experts.
The following is a guest column by Steve Deasy, Sustainable Project Manager for Gannett Fleming.
The percentage of businesses that do not recycle, or more accurately do not recycle effectively in 2012 is a little shocking. The list of reasons goes on and on, but the justifications made by business owners for not recycling are often unfounded. So what is the truth about business recycling? Let’s answer two questions: Why should a business recycle? How is a successful business recycling program structured?
Why recycle in the first place? From a life-cycle perspective recycling/reusing materials usually requires less total energy, creates fewer environmental impacts and costs less money than extracting and processing raw materials into new products. Although the size of a company and the quantity of waste generated are influential factors (i.e. economies of scale), most companies save money when they recycle effectively. For many companies, over 80 percent of their entire waste stream is potentially reusable or recyclable – an important fact that should drive a rethinking process for waste management. Recyclables have become “hot property” – demanded worldwide for an infinite list of uses and products. So valued in fact, landfills are now being mined for recyclable materials. In Pennsylvania, landfill disposal costs $50 to $80 per ton. Recyclables generate $15 per ton (e.g plastics and mixed recyclables) to $100 per ton (office paper) – do the math! So recycling makes business sense for our “triple-bottom line”: environmentally, economically and socially.
What components make up a successful business recycling program?
When a business realizes the truth about the costs and benefits of recycling, action has to start from the top. Having real (not pretend) commitment from upper management is key. Today, no company should operate without an environmental policy. This policy confirms the company’s specific commitments and guidelines for recycling and sustainable initiatives. But policy is only a policy without the proper tools in place. The best tools in the company toolkit are its employees. A successful recycling program taps in to the energy of passionate volunteers and assigns individuals with specific skillsets (e.g. legal person to review contracts); together these folks form a Sustainability Team. This Team will guide and implement recycling and sustainability initiatives, and continuously challenge the company to do better. The Team will develop specific policies, educate employees, set goals (e.g. recyclables diversion targets), and will identify new materials to reuse and recycle to expand the program. Particularly for larger companies (over 50 people in an office setting) the most critical component of a successful waste management program will be contracts with vendors for trash collection, recycling, and office supply purchasing. Reviewing these contracts closely so the business can make an informed decision on service is a must.
A substantial portion of businesses pay their waste hauler to haul away AIR? That’s right – air. Air hauling occurs because the level of trash service a business pays for (e.g. two trash pick-ups per week for 8 cubic yard containers) exceeds the actual level of service the company needs. So when the hauler arrives Tuesday and the dumpster is 25 percent full, the company paid full price to haul a near-empty container. This adds up because trash dumpster collections cost about 3 times more than recycling the same volume. This situation is magnified when the company recycles more and does not adjust trash service. Finally, keeping records or ‘metrics’ for the recycling program allows the company to review and share its success.
The Bottom Line
A smart business implements an intelligent waste management program that lowers costs and minimizes environmental impacts in a way that benefits its employees, tenants and the surrounding communities.
Steve Deasy, SCRP, LEED® AP is Gannett Fleming’s Regional Sustainability Director for 11 PA offices and the Corporate Solid Waste Director. Steve investigates, coordinates and implements “green” initiatives including green procurement, environmental policy development, recycling program implementation, education, water and energy efficiency. Steve coordinates the tracking of sustainability metrics and costs for all utilities and solid wastes for 47 offices. Steve is also USGBC Central PA Chapter’s Co-chair for the Program and Education Committee.
Wednesday, January 11, 2012
Commercial brokers must be knowledgeable about many different disciplines: law, construction, engineering, finance, negotiation, and more. Today’s blog post is the first in our “Going Green” series. Our focus today will be green architecture. Stay tuned for information from experts in the following areas: HVAC, recycling, and commercial cleaning.
The following is a guest column by Kazim Dharsi, Registered Architect and Professor of Architecture, HACC.
The Big Issue = Resources
Human population just surpassed the 7 billion mark, and with it comes challenges and pressure to conserve and wisely use the earth’s limited resources.
Indeed, the US Green Building Council estimates that buildings use nearly 40 percent of the world’s energy (see chart below). Construction and operation of buildings in the US account for a third of all energy used, two thirds of electricity and a third of raw materials.
How can Architects/Engineers Help?
Architects have responded by incorporating design strategies and specifying construction materials that are “green.”
Green architecture is not revolutionary. Green architectural design strategies include integrating elements that can dramatically affect building energy performance. They also include building shape and orientation, passive solar design, light wells, clerestories and other daylighting techniques and the use of natural lighting.
Moreover, architects have the ability to design in such a way that construction minimizes site impacts, debris and impact all while leaving beautiful, durable structures that blend well with their surroundings.
Working with other engineers/consultants, architects can integrate elements and gardens of native shrubs and perennials to cover 75 percent of the roof, helping to lower heating and cooling loads and increase tenant satisfaction. To help reduce potable water demand by 50 percent overall, buildings can be designed to use recycled wastewater for its cooling tower, low-flow toilets and for irrigating landscaping
In choosing construction materials, architects specify those that have the stamp of approval from an organization such as GreenSpec, which lists over 2,200 (and growing) environmentally preferable products.
GreenSpec conducts its own independent research in assessing manufacturer claims, ensuring that the guide contains unbiased, quality information.
A Call To Action
The American Institute of Architects along with many others is working toward the Architecture 2030 Challenge. This initiative has its goal to reduce consumption of fossil fuels in buildings. The end result is that all new buildings and major renovations shall be carbon-neutral in 2030 (using no fossil fuel greenhouse gases emitting energy to operate).
Green building skeptics will argue that it’s difficult or even impossible to build green without paying a big cost premium. It has been shown that a LEED-Certified project can be completed for an average of 2 percent more in upfront costs, and sometimes even below standard market construction costs. Plus, any extra first costs paid can be recovered through faster lease-up rates, rental premiums and increased market valuation. And by utilizing experienced green building architects, you can escape paying any green premium at all as early as your second green building project.
Kazim Dharsi is a newly elected member of the board of directors for the Central Pennsylvania Chapter of The US Green Building Council. Kazim teaches architecture and sustainability courses at HACC at their Midtown II Building which is a LEED Registered Facility. For more information regarding upcoming educational seminars on green building, please go to www.usgbc-centralpa.org.
Wednesday, January 04, 2012
Out with the old… in with news! Yes, news! Omni Realty Group is excited to share some exciting changes for 2012.
But first, we would like to invite you to join us on Twitter by clicking this link! Here’s an example of some of our top tweets the past few weeks.
This month, our blog series will be about ‘going green.’ We’ll interview engineers, architects, HVAC experts, commercial cleaning and recycling professionals as well as feature some local businesses that were able to use state grant funds for better efficiency.
And finally, we’ll launch a NEW WEBSITE on March 1!
Looks like 2012 is shaping up to be a time for great change and renewal! Happy New Year!
Wednesday, December 28, 2011
This month, we’ve featured several companies and organizations who are giving back for the holidays and all year round. It’s easy to see that Central PA is filled with groups and companies willing to lend a hand.
PinnacleHealth is no exception.
The PinnacleHealth Foundation recently launched the PinnacleHealth Children’s Fund to support numerous programs for children in our hospitals and community. With a gift of $25, $50, $100 or more, you can help provide medical screenings for abused children, cover a portion of a child’s hospital bill, or support childhood obesity prevention programs.
With children’s services ranging from surgery to counseling and from early disability intervention to primary care ,PinnacleHealth is committed to developing strong families and taking care of children from birth to adulthood. Below are a few of the programs that donations to the PinnacleHealth Children’s Fund help support:
Children’s & Teen Center – At the Children’s and Teen Center, children and adolescents from birth to age 18 receive quality healthcare regardless of their ability to pay.
Children’s Resource Center (CRC) – The CRC is dedicated to helping infants and children under the age of 18 recover from abuse so that they may develop and grow into healthy, productive, and non-violent adults.
Childhood Lead Poising Prevention Center – PinnacleHealth’s Childhood Lead Poising Prevention Program provides comprehensive lead poisoning prevention, testing and control services.
Bereavement Programs for Children – Camp Dragonfly is a free weekend bereavement camp for children ages 6-12. Together Laughing and Crying is a six-week spring and fall support group for children ages 6-12 who have lost a parent or other family member to illness, accident, suicide or homicide.
Infant Development Program – Early intervention helps children born with a diagnosed disability or medical condition reach their fullest potential.
Wellness and Prevention Programs – Girls on the Run is a life-changing learning program for girls ages 8-13. The program combines training for a 3.1-mile running event with self-esteem enhancing, uplifting workouts. KidShape is a nine-week fun-filled program that helps overweight children and their families become healthier. KidSahpe teaches the entire family how to eat more nutritiously, make exercise a fun part of their daily routine, form new healthy habits, and like themselves regardless of size.
The Children’s Fund will maintain and improve the health and quality of life for all children of Central Pennsylvania through PinnacleHealth programs or services. Click here to make a donation or to learn more.
Wednesday, December 21, 2011
Last week, we talked about how some local businesses are giving back to the community. This week, we’ll discuss another local opportunity for giving: The Bethesda Mission’s Medical/Dental Clinic program.
Bethesda is raising money to build a new Medical/Dental clinic as part of its “Rescue. Redeem. Restore. $2.9M Capital Campaign.” With a $600,000 price tag, the 3,000 square foot clinic will have five exam rooms and two dental chairs according to current plans. This space will be an addition to their current location at 611 Reilly Street. Bethesda has raised $400,000 and is soliciting the remaining $200,000, hoping to begin construction in the summer of 2012.
For two decades the Bethesda Mission has treated those who are uninsured or underinsured. Doctors and medical students from the Hershey Medical Center volunteer to work at the clinic, which is also staffed by Bethesda’s nurses. In 2010, the clinic’s staff handled 3,000 patient visits.
Just over a year ago, the mission opened a dental clinic that is open every Friday and provides care to 100-150 people each year.
Currently, modular units are being utilized for the medical clinic while the dental clinic is utilizing dormitory space on the second floor of the men’s shelter. The plans for the new medical/dental facility will move the clinics to the south side of the men’s shelter.
You can help make this facility come to life by making a pledge or cash donation toward this new and improved clinic. Three-to-five-year pledges are encouraged. You can also help by referring Bethesda to other potential funding sources. Omni Realty Group is excited to get involved. Will you join me in supporting this great local cause?
Wednesday, December 14, 2011
The holiday season seems to bring out the best in people, and businesses are no exception. Throughout the Harrisburg area, businesses are giving back to the communities that support them.
As we approach the end of the calendar year, we are accustomed to seeing the iconic Salvation Army red kettles stationed at businesses throughout the region. This year, local businesses are becoming even more involved in raising money for this charitable group. The Salvation Army of the Harrisburg Capital City Region created a competition among local businesses as a way raise awareness and funds.
According to the Battle of the Bells website, as of Dec. 12, the Woods at Cedar Run (Independent/Senior Living) is in the lead with just over $1,500 raised while the Radisson Hotel Harrisburg, Priority Systems, Bryn Mawr Trust Wealth Management -Hershey Division and Gift & Associates round out the top five. I applaud all of these businesses for their ongoing efforts to support this worthy cause.
In another showing of community support, the Greater Harrisburg Association of Realtors raised over $22,000 and purchased 725 turkeys and gift cards to be distributed to local families in need, prior to Thanksgiving. For the past 25 years, the association has donated both food and money to help feed the community. However, even as the economic downturn has hit the country harder, the total number helped rose by nearly 100 to 9,069 families.
These are just two examples of how local businesses are giving back to the community. Stay tuned next week as we talk about the Bethesda Mission and some major changes it has in store.
Wednesday, December 07, 2011
This year hasn’t been the best for the commercial real estate industry. According to a report released by the National Association of REALTORS® (NAR) on Nov. 28, NAR Chief 
Economist Lawrence Yun points out that “vacancy rates are flat” and “leasing is soft.” These factors, along with the struggling economy, have created an ideal market for winning concessions from landlords and owners.
But if you’re in the market to lease or buy commercial real estate, and you haven’t taken advantage of these conditions, the time to strike may be now. In the NAR report, Yun goes on to say “with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year.”
He predicts vacancy rates to trend lower. When comparing the fourth quarter of this year to the fourth quarter of 2012, NAR forecasts that vacancy rates will drop across the board for the four commercial real estate sectors – by 0.6 percent in the office sector, 0.4 percent in industrial real estate, 0.8 percent in the retail sector and 0.7 percent in the multifamily rental market. Fewer vacancies would mean less supply and more favorable conditions for landlords and sellers.
In terms of rental rates, NAR is forecasting modest increases for next year. This trend could be more dramatic in the multi-family market, which already has the tightest vacancy rates of any commercial sector. Apartment rents are expected to rise at faster rates throughout most of the country, and if new multi-family construction doesn’t ramp up, “rent growth could potentially approach 7 percent over the next two years,” Yun says.
When you combine this report with the fact that unemployment is at its lowest level in 2-1/2 years, there are strong indications that real estate leverage may soon begin shifting back to the sellers’ side on a broad scale.
Many of the same trends mentioned in the NAR report are playing out in our local market of central Pennsylvania. Of course, no one truly knows where the local, national and global economy will end up next year, but the present time may very well be a better time to invest or lease commercial real estate than 12 months from now.
Want to know more about what 2012 has in store for the commercial real estate industry? Would you like information about local vacancy or unemployment rates? Contact Michael Kushner at Omni Realty Group and learn more today!
Wednesday, November 30, 2011
In today’s economy, it is imperative that a business stay nimble and grounded. The most successful business will display the ability to plan for the future while not losing sight of lessons 
from the past. As the online store front becomes a staple for many businesses, the role of traditional brick and mortar stores are undergoing a significant change.
Here are a few ways the retail space is changing and a few advantages and disadvantages of each.
1) The Showroom – This is no longer just for furniture and cars. If your business sells things, people want to see them, touch them and typically try them out. Think Apple Stores and anywhere that offers samples.
Advantages of the showroom: People can touch and use the items prior to purchase. This also allows you to be more hands-on with a customer and create a personal bond with them. Business to person is taking place of business to consumer.
Disadvantages of a showroom: If you are not the only retailer of the product they may test it at your store and then buy it from somewhere else. This can be avoided by price matching and other incentives for in-store purchase.
2) Sub-leasing space – This is when you can take part of your space and add a business within your business. Think franchised coffee shop inside a grocery store.
Advantages of sub-leasing space: Income that doesn’t depend on customer purchases. The sub-tenant will be responsible for paying their rent no matter if they get one or 100 customers per day.
Disadvantages of sub-leasing space: The space is lost for the term of the lease. If your inventory expands you cannot recapture that space that is being rented.
3) Break out into smaller pieces – Set up small, nimble stores and hubs that will allow you to move a large amount of inventory in a very specific part of your business. Think Toys R’ US breakout stores in years’ past.
Advantages of break out stores: Allows you to promote small, highly profitable sectors of your business at convenient locations for specified times.
Disadvantages of break out stores: Pulls people away from your main location where impulse buys may add to total bill with full inventory available.
4) Make your inventory unique and allow for online shopping at your retail location – Companies that have a unique item assortment can leverage an online presence within their brick and mortar stores. (Think Best Buy.)
Advantages of unique inventory: In the store the customer can see and try out the product while having additional options via the online store. For example, a customer can enter an electronics store and test a new camera and then decide if they want to purchase the store inventory (typically a best-selling color of the product) or if they would like to order from the online inventory (sometimes the manufacturer will allow certain businesses to offer a customized color or package only available via the online store).
Disadvantages of unique inventory: Fairly minimal although you can run into many of the same issues as the showroom store with testing at your store and then purchasing from a different retailer if the items are not truly unique. If there are other comparable items in the market the customer may test at your store and decide on a different non-store specific model.
Once again, these are just a few newer and developing changes in the retail market and some general advantages and disadvantages of each.
Remember to contact a tenant rep who is knowledgeable of current market conditions and offer expertise suited to your leasing and buying needs. Contact Mike Kushner at Omni Realty Group today!
Wednesday, November 23, 2011
Last week, we discussed the advantages and disadvantages of telecommuting from the perspective of the telecommuter. This week, we’ll review telecommuting from the perspective of 
the employer.
Telecommuting is now easier than ever with increased use of mobile technologies such as smartphones, tablets, and mobile internet/email. Telecommuting is a great way for a business to lower costs, but it’s essential that management and staff understand how to create a solid telework concept. Here are a few things to consider before implementing a telecommute program.
1. Costs
Telecommuting can save thousands of dollars in real estate costs for many businesses. Even without telecommuting, many employees spend more than half their time away from their office/desk. As the use of telecommuting increases, the resulting empty office space can easily be re-rationalized by desk- share, “hoteling” or other office-space strategies. With a bit of strategic planning, companies can save about one office for every three telecommuting employees.
However, having a brick and mortar office is not a thing of the past. Many clients and business partners still prefer face-to-face meetings in a traditional office setting. Whether it is a consumer who doesn’t understand or enjoy today’s technology or simply wants to get a better feel for who you are as a company in person, nothing is going to replace the office in the near future.
2. Employee Interaction and Productivity
They are many advantages for companies who allow employees to telecommute including: saving money, improved performance, reducing staff redundancy, and increased productivity. However, telecommuting is not for everyone and it can lead to problems such as lack of social interaction, insufficient IT support, and an ‘out-of-sight, out-of-mind’ mentality.
Some managers feel that distance inhibits collaboration. At the same time, managers may not be prepared to handle the unique challenges posed by employees who telecommute and employees may not have the discipline to use their time wisely. Other times, the nature of a business may make telecommuting less beneficial.
If you’re considering allowing employees to telework, we suggest having a written telework policy and have all management and staff complete telework training.
To learn more about traditional and non-traditional work space options, we recommend that you consult with a tenant representative.
