Going Green, After Construction It’s All About Process

The post construction processes that contribute meaningfully to a building’s carbon footprint include the lighting, thermal envelope (whether or not a building leaks heat), bill collection and check writing. Yes, bill collection and check writing. Not surprisingly, these items correspond to line items from a property’s expense list.
 
Through online payment transfers, savvy property owners can both increase their ROI (shorter cash conversion cycle), decrease lost payments (the USPS is no internet), and decrease a building’s carbon footprint (no killed trees, far lower carbon emissions). Next generation property management is embracing online payment transfers and reporting for those reasons. This isn’t just green business, it’s good business.

In rental buildings, tenants want to live in a healthier, greener environment. Although this remains difficult to quantify, it makes them feel good about their choice of buildings. There is mounting evidence that tenants are willing to pay a green premium over market rents.

The best way to justify, implement, and embrace change is to regard it as improvement. When property owners consider the multiple advantages of green processes, they need to include the good they do for the environment and their wallets. Better, greener processes should benefit current owners here. Not only will owners lower their current operating costs, but also improve their exit prices down the road. One clear aspect of real estate that future purchasers will investigate is how much a building costs to run. A less clear aspect of real estate value that purchasers look at is how green a building is and what steps management has taken to reduce the carbon footprint. Although difficult to measure, the panache associated with being green translates indirectly to the bottom line. People pay up for and buy more quickly into green property.

This seems a fitting topic as we wind down Earth Month- going green for all the right reasons. The owners who emerge first and best from this market will be the ones who have listened to the market, offer what people want and manage their properties best. As commercial and residential vacancies climb and late payments age, the importance of controlling what you can for your property remains paramount. When your actions can help the planet and line your wallet, so much the better.