Southern California Office Real Estate Blog

INSTALLING SOLAR FILMS CUT UTILITY EXPENSES

INSTALLING SOLAR FILMS CUT UTILITY EXPENSES

   by Jodi Summers

Thin solar films are now covering the windows of office buildings around the country, reducing the temperature inside, cutting back on cooling costs and increasing user comfort.

The newer, thinner, solar films being placed over the building’s glass that is completely clear, yet cuts ultraviolet and infrared light. “This is a clear film that takes your window and makes it into a smart window,” says Dan Venet, executive vice president of CHB Industries. “It’s nice to have natural light coming in, and gives you an opportunity to reduce your lighting needs.”

Earlier versions of this film kept out heat, but the tint created a gloomy environment, something you don’t need more of in the northern part of the country. Newer solar films take advantage of technology that filters out UVA and UVB rays, while reflecting infrared radiation. That reflection reduces 55% of the sun’s heat without affecting the visible spectrum of light – a giant leap for mankind.

Key is the clarity of the new films, which allow in maximum light and decreases energy consumption.

“We’ve had tenants put no lighting in perimeter offices because of that,” notes Herb Gonzalez, a property manager at L&L Holding Co., about how the new film impacts office buildings. “We notice a significant heat rise in areas not yet filmed. We find it does cool the building.”

The technology has advanced to the point that some films not only will block light, they also contain ultra-thin photovoltaics to allow the film to produce energy. The payback period on solar films varies by region. In the West, payback can range from six months to three years, Smith observed.

The October 2008 Emergency Economic Stabilization Act allows tax credits for homeowners who install energy efficient improvements in 2009, with window films possibly qualifying, according to the International Window Film Association (IWFA), in Martinsville, VA. Commercial real estate, however faces greater economic challenges.

“There’s a tremendous amount of interest,” with the recent spikes in the price of oil, says Darrell Smith, executive director of the IWFA. “But the same people who are worried about energy bills also are worried about layoffs.”

http://www.globest.com/news/1342_1342/insider/176890-1.html

http://www.euroguard-spain.com/solar-film.html

http://www.protint.ca/ComResInd.htm

http://www.windowfilmdepot.com/blog/index.php

NEW GREEN LEED FOR RETAIL OPTIONS TO BUY SOON

NEW GREEN LEED FOR RETAIL OPTIONS TO BUY SOON

By Jodi Summers

“LEED for Commercial Interiors 2009 is a system for certifying high-performance green retail interiors, and LEED for Retail: New Construction 2009 is designed to guide and distinguish high-performance green retail buildings,” proclaimed the US Green Building Council. “The LEED for Retail rating systems were designed to recognize the unique nature of the retail environment and address the different types of spaces that retailers need for their distinctive product lines.”

Green retail is the next big push from USGBC Leadership in Energy and Environmental Design (LEED) suite of rating systems. New Construction 2009 and LEED for Retail: Commercial Interiors are now being reviewed by the FCC.

More than 80 individual retailers worked with the USGBC and the LEED Retail Core Committee to formulate the draft. Both systems offer variations on site selection, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, innovation and design process, and regional priority.

Once confirmed, these new LEED for retail benchmark will join standards for New Construction, Core and Shell, Schools, Existing Buildings: Operations & Maintenance and Commercial Interiors. More systems are planned.

“Much has been invested in the development of these current LEED for Retail draft rating systems and a concerted effort has been made to ensure that both of the LEED for Retail 2009 rating systems capitalize on the existing market momentum while addressing the needs of LEED users,” the USGBC announced. “Most of the structural and technical changes incorporated into LEED for Retail 2009 drafts were also designed to create a rating system that can be part of a continuous improvement cycle.”

Info courtesy of http://www.globest.com/news/1361_1361/insider/177441-1.html

 http://www.inhabitat.com/2008/01/06/foliage-covered-building-in-seoul-by-mass-studies-architects

http://worldcentric.org/biocompostables/categories/retail

http://www.sustainablebuildings.gc.ca/default.asp?lang=En&n=75F4A2E5-1

THE DECLINING LENGTHS OF OFFICE LEASES

THE DECLINING LENGTHS OF OFFICE LEASES

Call it another sign of evolution. The real estate news authorities at GlobeSt.com have

reported that the length of office lease terms has declined over the years, from 20 years to 12 years to seven…changing the nature of office building ownership.

COMMERCIAL REAL ESTATE FINANCE TAKES A HIT

COMMERCIAL REAL ESTATE FINANCE TAKES A HIT

by Jodi Summers

Those involved in commercial real estate are feeling confident that the marketplace won’t take anywhere near as hard a hit the residential real estate market…but the fallout has certainly begun. Some companies, such as Anthracite Capital, may not survive to benefit from the Federal Reserve’s effort to resurrect the U.S. financial markets with cash.

Forbes.com, the rock for reliable statics and information, reports that BlackRock-managed Anthracite Capital invests in high-yield (read: junk) bonds and loans that finance commercial real estate. Recently, the company announced a mammoth fourth-quarter loss - financial problems ranging from busted loan covenants to unpaid margin calls - and a warning by its auditors that its demise may be imminent.

The experts perceive that when times are tough and market conditions are deteriorating, banks behave differently. As markets deteriorate, bank loan portfolios erode in value putting pressure on bank capitalization ratios.

“Undercapitalized banks shift their attention to short-run capital preservation rather than long-run profit maximization, and this change in goals has several undesirable effects,” observed Eric S. Rosengren, president and CEO of the Federal Reserve Bank in Boston. “Perhaps the most undesirable is that undercapitalized banks, finding it difficult to raise additional capital, are forced to improve their capital ratios by shrinking assets.”

“Since loans are usually the bank’s most significant asset, lending becomes more restrictive,” he said. “And, because undercapitalized banks seek to shrink without incurring additional losses, the specific form the asset shrinkage took could be perverse. For instance, some banks would support troubled borrowers in an effort to avoid loss recognition, while reducing credit to more creditworthy borrowers with whom the bank could curtail credit without incurring a loss.”

Anthracite’s Problem goes back to the company’s business model, which call for a steady stream of outside funding. Issue is, the company has been shut out of the financial markets by the subprime-spawned disaster, and this issue subsequently affected the company’s commercial sector. Anthracite Capital reported a loss of $3.49 per share, miles below the 25 cents per share gain Wall Street had expected. Sales meanwhile were only $26.3 million, 69.6% below the $86.5 million consensus forecast. During the 2007 fourth quarter the company earned 24 cents per share.

In response, It lost half its value on March 18th, closing at 40 cents. The shares began to falter in the middle of 2007, when the subprime crisis started to freeze up credit markets; the stock traded above $12.50 at the time and spun off an annual dividend of about $1.20.

Forbes.com concludes: “Anthracite is a perfect example of what can go wrong with real estate-related businesses. As financing for the sector evaporated, it caused prices to drop, leading to reduced demand for the securities and loans in which Anthracite dealt.”

Original content @

http://www.forbes.com/2009/03/18/anthracite-capital-blackrock-markets-equity-commercial_print.html

http://www.costar.com/News/Article.aspx?id=A8CD2AA8205D4246D8EF8B4AAA852644&ref=100&iid=123&cid=383F14EEE265B182474DA2442BACBBBF

http://www.flickr.com/photos/fox-orian/2561000243/

http://www.cramerproject.com/info.php?symbol=AHR

http://fs.silobreaker.com/thumbs/p/q/pqmhr2vjgdx.jpg

http://www.kfwimer.com/images/ss-subprime.jpg

DISTRESSED OFFICE BUILDING STATISTICS

DISTRESSED OFFICE BUILDING STATISTICS

by Jodi Summers

According to the CoStar Group, currently there are more than 19,600 distressed office buildings in 50 of the largest U.S. office markets.

To add insult to injury, the amount of office buildings falling under this distressed category has been growing at more than double the national rate in six markets: Austin (35.9% higher than a year ago), Inland Empire (33% higher), Los Angeles (20.7% higher), Phoenix (20.5% higher), Southwest Florida (20.2% higher) and San Antonio (18.3% higher).

 In addition, Phoenix led the country by percentage of distressed buildings to the total number of buildings in the market at 11.1% compared to a 6.5% average. Detroit had the second highest percentage at 10.2%, Las Vegas third at 10.1%, Atlanta fourth at 9.8% and Southwest Florida fifth at 9.1%.

Get all the dirt @ http://www.costar.com/News/Article.aspx?id=C5ADF0D4BF9877754FEA75CA97C1CA54&ref=100&iid=122&cid=383F14EEE265B182474DA2442BACBBBF

https://www.soulforce.org/images/photo_albums/right_to_serve/phoenix.jpg

http://upload.wikimedia.org/wikipedia/commons/thumb/6/6f/Map_of_Florida_highlighting_Southwest_Florida_alt.svg/601px-Map_of_Florida_highlighting_Southwest_Florida_alt.svg.png