By Jean Louis Racine,  Lawyer, Real Estate Broker – an excerpt from “Don’t Sign This Lease”

When you are either starting a new business or you’re looking to move your current business to a new location, you will need to negotiate a commercial lease. Hiring a professional commercial lease expert is certainly one way that you can reduce your overall costs and expenses that will be associated with your lease.

But there’s no reason why you couldn’t handle this by yourself (though you’re likely going to save more in the long-term with professional guidance from a commercial lease expert).

1)  Have you figure out the going rate for comparable spaces in the area?

Before you step into any landlord’s office to talk about a lease, look around and figure out what comparable spaces are being rented for. Go from business to business and speak to the owners of those businesses.

More often than not, most business owners will be more than willing to share information with other businesses. When you have a general idea of the average price of rent, then you have some bargaining power.

2)  What perks do you want with your commercial lease?

When you negotiate a commercial lease, the monetary cost is only one part of the deal. Parking space, utilities, and access may also be important considerations. Your business may require more available parking than your potential landlord is willing to offer up front.

Let him or her know that that’s a deal breaker if you can’t have the parking that you’ll need.

3)  How long the space you’re interested in has been available?

If you are looking at a prime location, meaning a location that every business in town seems to be drooling over, and it’s only going to be available for a matter of days, then your ability to negotiate the commercial lease to a better price or perks will be limited…except if you deal with a commercial-lease-expert.

If, on the other hand, the space has been empty with a sign out from advertising its availability for quite some time, you have more bargaining power.

Whenever a business has any kind of leverage when it comes to leasing commercial space, then that business has the ability to negotiate the commercial lease to help save money, reduce overall costs, and also the time frame of the lease!

Landlords want to sign tenants for long periods of time, from one year to five or ten. If you have a new business and you’re not certain about whether it will survive one year, let alone two or more, then you don’t want to lock yourself into a long-term deal.

Conclusion

A commercial  lease is a binding legal contract. Whatever you agree to, you are obligated to fulfill and that means that you will be responsible for any rent for the entire period of your lease.

If this makes you uncomfortable and your potential future landlord appears to not be willing to negotiate the commercial lease to terms that you are comfortable with, that doesn’t mean you have to sign on the dotted line. Call a commercial lease expert and get some professional help on your side.

Knowing some of the keys to the industry can go a long way toward saving you money for your commercial lease.

Jean Louis Racine is a Commercial Lease Negotiator, accredited as a lawyer by the Québec Bar, Québec, Canada, in 1978, and as a real estate broker.  If you would like more information on his new book, you may contact him at http://commercial-lease-expert.com/about-the-author/.

In a standard warehouse, lighting electricity can represent 38% of total operating expenses; 15% in a refrigerated facility. When grossly inefficient HID fixtures are used, the majority of that energy is wasted and turns to heat. HIDs also require frequent maintenance and offer little control. Fluorescent fixtures, although an improvement over  HIDs, still leave a lot of room for improvement in terms of efficiency and control.

With the advent of LED light fixtures that are well  suited to high-intensity applications, warehouse lighting is poised for a dramatic transformation from one of the leading energy users to a shining example of how a sustainable choice can improve the bottom line. But LED fixtures alone  are not sufficient — LED fixtures incorporated into  Intelligent Lighting Systems are the key.

We will outline here how LED-based light fixtures and Intelligent Lighting Systems are converting warehouse lighting from a significant monthly energy expense  to a strategic asset.

INTRODUCTION

It is ‘game  over’  for traditional ‘brass  and  glass’  lighting in warehouses and  large  industrial facilities. In converting almost all of the energy used into  heat  and not light, the existing standard is simply not sustainable. Fluorescents, with modest increases  in efficiency, offer some improvement, but are fraught with issues of their own  — including lifetime and hazardous material content.

LEDs — ultra-efficient light-emitting diodes — change everything, especially when  incorporated into Intelligent Lighting Systems.

Before and After

Intelligent Lighting Systems, a fundamentally new approach to lighting, apply networking and software-based intelligence to multiply the energy-efficiency benefits of LED-based light fixtures. The result is a lighting platform that gives facility managers unprecedented levels of energy efficiency, improves the quality of the light delivered, and provides additional capabilities that continually enhance operational efficiency.

For  industrial  facilities,  in particular,  the  dividends of Intelligent Lighting Systems  are  visible both in the  work environment and  in the  monthly energy bill.  With massive reductions  in energy costs over high-intensity  discharge (HID) fixtures and  improved light levels,  the  benefits  are  visible to employees and  managers alike.  What do  you  need  to know about  Intelligent Lighting Systems to evaluate their suitability for your  environment? Here we will  address:

• Traditional industrial lighting sources  — pros  and cons

• The anatomy of an Intelligent Lighting System

• Factors driving rapid adoption of Intelligent Lighting Systems

• The business  case for Intelligent Lighting Systems

If you are considering retrofitting an existing facility and/or constructing a new building, now is the time to familiarize yourself with the new lighting technologies and integrate them into  your  plans.

TRADITIONAL HIGH BAY LIGHTING

Inefficient. Expensive.  Dumb.

The high bay lighting used in large industrial facilities — legacy fixtures including high-intensity discharge (HID) lamps and various fluorescent alternatives (T5 or T8) — is grossly inefficient. These fixtures have been in use for generations and are considered reasonably inexpensive to acquire with predictable maintenance requirements. From  an energy-usage perspective, however, these fixtures are terribly expensive to run, driven by the inherent inefficiency of the underlying technology. Further, because  they are usually  left running for many hours a day, have no built-in intelligence, and have no native control capabilities, these legacy options cannot be managed to maximize efficiency and minimize energy usage.

The table on the following page  provides an overview of traditional warehouse fixtures, reviewing the pros  and cons of each.

Figure  1: Pros and Cons of traditional warehouse fixtures

The bottom line? Legacy HID and  fluorescent leave  a lot to be desired in terms of energy efficiency, which will only get worse should energy rates continue to increase. Neither of these choices gives facility managers what they really  want:

Efficiency

• Energy-efficient light source

• Low heat output

Reliability

• Consistent performance in a wide temperature range — from deep cold to warm

• High-quality light that does not deteriorate over time

• Instant ON and OFF without shortening life of light source and at the full light level desired

Controllability

• Wide range of dimming options

• Easily matched with controls that allow users to tune the light level and usage to specific applications

• The ability to easily change control settings over time

• The ability to leverage controls and occupancy sensing to maximize energy savings without sacrificing

usable illumination

ANATOMY OF AN INTELLIGENT LIGHTING  SYSTEM

Integrated intelligence drives  radical efficiency

Intelligent Lighting Systems take an integrated approach to delivering exceptional levels  of energy efficiency along with high-quality illumination and  new  control capabilities. By  incorporating LEDs, distributed intelligence and  networking into  a single  system, Intelligent Lighting Systems transform lighting from a fixed expense  to a strategic asset. They also provide operational insight and intelligence

— reports, metering and  third-party system integration — that can  help  you  run  your  business  even better. The elements of the intelligent lighting system are:

Intelligence — The core  of an Intelligent Lighting System is a distributed control system, which combines sensor data and software-based ‘rules’ to determine where and when to deliver light within a facility. This intelligence has a profound effect on driving down energy usage, ensuring that lights are only  consuming power when  needed.  System-wide intelligence also enables  the harvesting and reporting of key operational data, which helps to improve overall facility management.

LEDs — LEDs are a semiconductor technology that has been  in use for decades in a variety of applications. They  offer unparalleled efficiency and  reliability and  are now  being widely adopted for general illumination. In addition to commercial and residential applications, LEDs are now  being installed in high-bay environments because  they can deliver higher light levels, much  lower energy consumption, long  lifetime, minimal maintenance, and  reduced heat  generation. LEDs  are  also inherently controllable, which creates new opportunities for managing them.

Sensing — Intelligent Lighting Systems incorporate sensing  devices as a mechanism for ensuring efficient light delivery. These devices  provide the ability to identify occupancy or other environmental attributes; e.g., daylight, and tailor the delivery of light according to pre-defined software rules.

•      Software Rule Example 1: Is the space is occupied? Then turn  the lights on in that area — either all at once  or in a ‘domino’ sequence as the occupant progresses — to the desired light level (which can vary  by shift).

•    Software Rule Example  2: Is there other light present? Then reduce the amount of light delivered.

Networking — Bidirectional networking, which allows  the fixtures to communicate with each other and with a centralized control device, is the fourth key element of an Intelligent Lighting System. Without it, the fixtures are standalone ‘islands’  that cannot work together to provide system-wide benefits such as zone-based control of fixture groups or detailed aggregate energy usage reporting.

The  key  to maximizing efficiency,  however,  is to have  LEDs, sensing, intelligence  and  networking all integrated into  a single  system. Merely  cobbling the various elements together does  not make  a scalable,  efficient and cost-effective solution that meets  the needs of high-performing facilities. Those ‘some-assembly-required’ projects often are characterized by  limited functionality, higher costs and interoperability issues. In contrast, when  these elements are optimized together, the resulting system can deliver radical improvements in efficiency and functionality.

 Figure  2: Intelligence reduces  power consumption

Figure  3: Pros and Cons of Intelligent Lighting Systems

FACTORS DRIVING  ADOPTION OF INTELLIGENT LIGHTING  SYSTEMS

Major financial savings, improved light and operational control

 Leading facilities are adopting Intelligent Lighting Systems because  they are proven to deliver: 

•  Massive energy reductions — 90% and greater — by carefully managing the delivery of light only when and where  it is needed and incorporating advanced LED technology, Intelligent Lighting Systems can drive  down lighting costs by 90% compared to traditional HID alternatives. The reduced heat output also reduces chiller load in climate-controlled or cold  facilities, offering additional savings  that can be as high as 50%.

• More  light where it is needed — The efficient and directional light provided by  LED-based fixtures can dramatically improve the light levels (and uniformity of lighting) in a facility.

• Long life, reduced maintenance — With a lifespan of up  to 100,000 hours,  the LED light sources used in high-quality Intelligent Lighting Systems virtually eliminate ongoing maintenance and regular re-lamping schedules. When  matched with an occupancy sensor and intelligent control, reduced run hours  further extend useful life.

• Improved operational control — The ability to instantly update the lighting program, combined with the ability to gather detailed data about the facility’s lighting delivery, energy consumption, occupancy and more,  mean  that Intelligent Lighting Systems give  managers better operational control of their resources and working environment.

• Sustainability — Corporations are embracing Intelligent Lighting Systems to reduce carbon footprint, document efficiency improvements, decrease the load on their utilities, and insulate themselves from future rate  increases.  As an added bonus,  the radical energy savings  driven by  Intelligent Lighting Systems qualify some customers for substantial utility rebates.

As organizations evaluate how  best to meet  their ongoing lighting needs, while  reducing energy bills and improving their green  rating, these new solutions are an ideal fit.

INTELLIGENT LIGHTING  SYSTEMS — THE BUSINESS CASE

Two-year payback

One of the top concerns for people considering LED-based solutions is cost. LED-based fixtures, whether

‘dumb’ or part of an Intelligent Lighting System, are more expensive than traditional alternatives. However, the intelligence built into  Intelligent Lighting Systems maximizes energy savings,  far exceeding the savings of dumb LED fixtures alone. When evaluating the business case for Intelligent Lighting Systems, it is important to consider:

1.   Up-front costs — What will it cost to acquire and install the new system? The equation: purchase price

+ installation costs, less any offsets* (utility rebates and tax credits, which can be substantial). 

2. ROI (return on investment) — How quickly will the energy and maintenance savings  offset my initial investment? The ROI equation: savings  per year divided by up-front costs. Or the payback equation: up-front costs divided by  the annual  energy savings,  with an eye on when  the anticipated savings cover the initial purchase price  (time horizon).

3.  TCO (total cost of  ownership) — What are the total costs, including installation, operation, and maintenance, across  a five- or  ten-year period? The equation: up-front costs less offsets, annual energy, maintenance, and cooling savings.

Analyzing the different scenarios for Intelligent Lighting Systems vs. HID and HIF will give you a detailed understanding of how the long-term financial benefits of Intelligent Lighting Systems mitigate the higher initial costs. When considering an investment in yesterday’s HIF technology, remember that even though payback periods will  be similar,  HIF will  show  a much  higher TCO as the energy savings  generated by HIF are much  smaller.

Here’s a snapshot of a 500,000 square  foot refrigerated cold  storage warehouse that had 400W HID fixtures installed and retrofitted with an Intelligent Lighting System.

Figure  4: 400W HID, HIF and Intelligent Lighting System in a 500,000 square  foot facility with 24 x 7 occupancy

 * Note: Many utilities offer substantial rebates to facilities undertaking a lighting retrofit if the energy savings  will be significant enough. Additionally, Intelligent Lighting Systems, with integrated controls and built-in intelligence, gather actual kWh  consumption data and occupancy data typically required by utilities for measurement and verification.

KEY CONSIDERATIONS WHEN EVALUATING INTELLIGENT LIGHTING SYSTEMS

Be a smart customer

When  considering whether Intelligent Lighting Systems are appropriate for your  facilities, here are some of the top-line questions you should ask any potential vendor:

• Integration — Does your system include LEDs, sensing, intelligence and networking in a single, integrated solution?

• Light levels — What light levels are delivered at the work surface? For LED-based fixtures, total lumens generated do not tell the whole story — focus on foot-candles (light output) delivered.

• UL certification — Is the fixture UL listed as a complete luminaire? A UL listed fixture gives  you  the greatest assurance  that the system is designed for safe operation and insurance compliance.

• Full  testing results — Do you  have  independent LM-79  and in-situ temperature tests for the lighting fixtures and LM-80 tests for the LED components used  in the fixtures to document the light output and anticipated lifetime performance? Poorly designed LED fixtures will run too hot and won’t deliver the light output over  the fully claimed life.

• Warranty — What type of warranty protection is offered? What’s covered? Term?

There  are numerous other questions you  should ask, but these are a good starting point that will  help ensure that you are working with a reputable vendor.

CONCLUSION

Investing in intelligence pays dividends

If you are considering a retrofit or a new build project, developing a thorough understanding of Intelligent Lighting Systems and  the opportunities they hold  for greater energy and  operational efficiency is a worthwhile investment.  Lighting is  often the  largest energy user in dry  storage warehouses, and the second-highest in refrigerated facilities (after chillers), but absolutely the easiest to address. Now is the time to get out your utility bill, sharpen your pencil and start to calculate how much your current lighting is costing you each month, and how far you can reduce that number with an Intelligent Lighting System. Many  customers are seeing  lighting cost savings  of 90% or more,  with a two-year payback for their initial investment. No more  ‘dumb’ lights,  and that’s an intelligent decision.

For more information you can call or visit Digital Lumens.

By Ashley McDonald

Advancements in technology have presented unique solutions to helping business owners achieve their sustainability goals, from energy efficient lighting and equipment to solar panels and wind turbines.

Natural Resources Canada (NRCAN) states that space heating for commercial or institutional buildings can account for 70% of its total energy consumption. Canadian companies have found spectacular opportunities to reduce space heating costs in solar heat production. Products such as the SolarWall, from market leader Conserval Engineering Inc. and found in over 33 countries worldwide, presents an excellent opportunity to reduce your heating costs and enhance your company’s sustainability goals.

The SolarWall is a solar air heating system, usually installed on an exterior wall, or tilted roof. The panels of the wall preheat fresh air before it is pumped into the interior heating system. The technology showcases a battery-like component, where unneeded heat is stored for later use. It can also interact with other systems, such as solar hot water collectors and building automation systems further increasing overall building efficiency. The resulting large flat surface of the SolarWall presents the perfect place for photovoltaic solar panels, which can be installed on the systems exterior cladding. The system requires minimal maintenance, has 30+ year lifespan, and a very low payback period, averaging 3-5 years.

CANMET SolarWall at McMaster University

A SolarWall system has been installed at NRCAN’s CANMET (Canadian Centre for Mineral and Energy Technology) Laboratory, a LEED Platinum building at McMaster University. The CANMET Labs conduct research in the transportation, energy, and metal manufacturing sectors, and require highly controlled, highly ventilated environments for their research to take place.

CANMET at McMaster University Solar Heating

Mike Lubun of NRCAN, the Energy Modeller for this project, stated that the system operates 24 hours a day, 7 days a week on a varied schedule, moving air at 32,550l/s when the building is fully occupied (7am-5pm Monday to Friday) and at approximately half flow on evenings and weekend. Increasing the temperature of that volume of air by even a few degrees can have a huge impact in overall heating.

Heating the 174,000 ft² building by conventional means would result in massive overhead costs; however, the SolarWall systems drastically reduce these costs for the building by all but eliminating fossil fuel dependant heating. By analysing field data, using computerized modeling systems, and climate data, Mikes’ team was able to project that the SolarWall system may create as much as 20,550kWh of energy saving annually, once fully operational. This is a decrease of approximately 70% compared to traditional heating methods.

Ventilation: Displacement ventilation is utilized throughout the building to reduce fan power requirements. Offices are provided with 100% fresh air, with operable windows for additional capacity. Labs have three to six air changes per hour and, during the winter season, heat from exhaust air is recovered to preheat incoming fresh air. In addition, solar wall panels preheat incoming ventilation air to further reduce the heating load.

The building is currently running at 80% capacity while construction nears its final stages. Once the building is fully occupied NRCAN will conduct detailed monitoring of the system, tracking heat creation, efficiency, climate conditions, and wind speed to determine just how well the system is performing. Single-point access controls will allow for detailed adjustments to the system to ensure it runs at the highest level of efficiency. They are also planning to tie the SolarWall system into the building’s automation system, allowing for bypass set points that ensure the whole system runs efficiently.

Implementing a SolarWall system at the CANMET labs was a large part of the engineers’ LEED Platinum strategy, where points were gained for reduced space heating related GHG emissions. The system also qualifies for energy efficient grant and incentive programs.

Mike explained that detail analysis of the exterior building was conducted, including directional placement, to ensure optimal solar exposure, and distance from neighbouring buildings, to eliminate shadows and solar blocks. He also explained that the use of space can be doubled by installing photovoltaic panels on the surface of the SolarWall, further enhancing sustainability goals. 

Other NRCAN SolarWall installations, such as Drake Landing in Alberta, have seen massive savings, covering up to 90% of space heating requirements and reducing GHG emissions by 5 tonnes annually.

Combining highly efficient, smart systems, with inexpensive energy sources (such as the sun) can significantly reduce overhead costs, while reducing GHG emissions. The SolarWall system has proved to be an excellent opportunity to achieve these savings and put sustainability goals within reach.

Ashley McDonald -  Special to the Monster Commercial Property Report

By Maurice Benatar

Are you aware that on average, companies in the GTA are spending anywhere between $6,000 and $10,000 per person annually on real estate rental fees? Workspace studies also reveal that employees spend 38% of their time working out of office.

In fact, at any given time, commercial offices within the GTA may find their space only half full. Contributing factors include the inability to find adequate meeting space and remote working alternatives. Mobile technology has changed the way that people work and increasingly, even within the office, collaborative work requirements mean commercial office space is being underutilized or not being used effectively.

Mediascape lounge supports collaboration in comfort

Companies are recognizing these trends and identifying lost revenue opportunities in part due to the inability of their existing space to support the kind of work that their business requires. Remaining competitive and effective requires smart planning and an overall assessment of facility requirements. 

Mayhew, an Ontario based design and workspace solution provider, recognizes how the world of work continues to evolve. Leveraging research and client experience spanning more than 25 years, Mayhew’s interior designers, project managers, ergonomists, procurement specialists and labour services cumulatively provide solutions that boost productivity, facilitate collaboration, enhance work life, build organizational pride and, ultimately, contribute quantifiably to the bottom line.

Hoteling area provides impromptu touchdown zone

In the new world of work, maximizing productivity means leveraging space as an asset. An attractive space that lends itself toward greater collaboration means employees will be better aligned, and dedicated project areas will help foster cross functional effectiveness. The impact of smart design extends to managing an increasingly multi-generational workforce. Millennials, which continue to enter the workforce en masse, typically embrace environments which enable technology and provide flexibility that reflects their lifestyle. Integrating this dexterous generation into the workplace requires accommodation. Well thought out design which factors in these strategic imperatives go beyond aesthetics and functional requirements.   

Understanding and advancing client business objectives requires an approach that factors in these insights; meeting their physical space needs means engagements that offer unique value, both financially and culturally. Leveraging strategic expertise, such as that provided by Mayhew, can be a game changer.

How can companies realize bottom line savings in their facility? “We make it happen by collaborating closely with our clients, deploying proprietary surveys, where appropriate, to determine potential savings and productivity gains, while listening carefully to their needs,” says Nicole Clancy, Senior Workplace Strategist at Mayhew. “Ultimately, we create results that express their aspirations, inspire their workers, and directly contribute to new levels of business efficiency.”

Campfire chat in open area collaboration zone

Whether you are seeing flux in your workforce, workplace inefficiencies, a productivity deficit, or simply looking to control costs, you need an effective workplace strategy.   Real estate experts are also beginning to differentiate design shops from one another. Designers have systematically been viewed as space planners who can be called upon to provide what the industry refers to as 10 cent planning. Some brokerage houses retain a pool of design partners who provide planning services whose costs are at times covered by the landlord where a new lease has been negotiated. Design planning, however, is only one part of the solution where it concerns the long term health of the organization.

Companies are becoming savvier and look toward the long term viability of a space to meet their evolving needs. Doing your homework up front can make a world of difference down the road and that means having a partner who interrupts your thoughts and gets you looking at the long term value of your space. Partnering with clients to identify a suitable space that meets their business objectives is a core objective in the real estate world, while landlords are equally looking to keep them there.

Whether you’re a company looking at move or space efficiency strategies, a brokerage or landlord looking to entice tenants in a competitive market, or a future employee considering what type of environment you want to be working in, you have to consider workplace trends and how space might best serve your needs in the long run.

Maurice Benatar is Vice President, Business Development and Marketing at Mayhew, a Thornhill, Ontario company specializing in workplace design and solutions.

Potential Impact of Climate Change on Building Envelopes

By Brian Burton

Introduction; the following article introduces the subject of the potential impacts of what some professionals believe is a shift in the global climate, manifested as changes in historical weather patterns, on building enclosure systems. The editorial also discusses why the building envelope is particularly susceptible to potential changes climate patterns and describes the some factors that could have an impact on performance.

Background: Many scientists believe that what appears to be a gradual warming of the earth’s surface and atmosphere may be the result of human activity and increasing urbanization around the globe. Many also believe this warming trend has the potential to destabilize weather patterns and increase the frequency and intensity of severe weather related events*.

(*For example 2005 was the warmest year on record and coincided with the most active hurricane season since record keeping began. 2005 was also the costliest year ever for the insurance industry when it came to building failures and claims for damages.)

There are also signs that we be may beginning to see the early signs of what is now commonly referred to as the effect of climate change on new and existing buildings. 

Most engineers agree that any significant change in weather patterns will almost certainly require the modification of the manner in which we design, construct, manage and maintain buildings.

Rather than discussing what may be causing any possible alterations in climate patterns, the aim of this article is to focus on identifying some of the specific factors that might affect buildings envelopes and possibly put occupants at risk.

Impact on Buildings: Whatever the reasons may be for changing climate conditions according research undertaken by Engineers Canada this phenomenon appears to be having an impact on Canada’s building stock and building occupants.  

To meet the climate change challenge, Engineers Canada have established several Engineering Vulnerability Committees in an initiative which involves all three levels of government together with private organizations to systematically examine the vulnerability of our buildings and infrastructure to climate change.

 http://www.pievc.ca/e/index_.cfm

The committee defines climate change as:

Any systematic change in the long-term statistics of climate elements sustained over several decades or longer. Climate change may be due to natural external forcings, such as changes in solar emission or slow changes in the earth’s orbital elements; natural internal processes of the climate system; or anthropogenic forcing*. (*Human impact on the environment)

Weather vs. Climate: “Weather” is the daily and hourly change of the atmospheric condition, while “climate” is the state of the atmosphere over much longer periods of time.

Impact on Enclosure Systems: The building envelope is particularly vulnerable to changes in climactic conditions. These systems have become thinner and lighter with the evolving construction technology and materials and enclosure systems are especially susceptible to even minor changes in weather patterns as a result.  (For example, a 25% increase in peak wind gusts could lead to a significant increase in damage caused by wind borne debris and wind loading in excess of the design loads.)  

As one would expect cities with their high density of property, people, and services make urban areas particularly vulnerable when extreme weather or natural disasters strike or when weather patterns are altered.

Premature weathering and/or deterioration of building enclosure systems because of the stress on the building envelope caused by changes in the weather patterns is a serious concern and this phenomenon is, with good reason, quickly becoming the focus of a great deal of attention in many regions of Canada.

For buildings the foremost concern of course involves the health, safety and well-being of the occupants and it is difficult to adequately judge the potential impact at this stage.

We do know that Canadians spend approximately the 90% of their time indoors. As one might expect, in addition to temperature extremes, occupants can be adversely affected by changes in humidity levels and other factors such as air quality and by the presence of chemicals, pollutants, insects and/or mould.

The outside of the building enclosure system is also in direct contact with the elements. As such the envelope serves an important function as an environmental separator between the outside elements and interior conditions.

It is also a relatively straight forward building science exercise to stimulate at least some of the impacts of various climate change scenarios on full-scale mock-ups of building envelope assemblies in a laboratory setting. Computer simulations might also prove useful.

Impact of Climate Change on Building Performance: When it comes to existing buildings the age of the structure, the materials used in its construction and the type of building envelope system can influence the structures ability to resist the forces of climate change.

For example a 50-year-old masonry building constructed using a “face sealed” cladding system will, in most cases, have very little capacity to resist the impact of climate change because the “shell” of the building is directly exposed to the ever-changing and more hostile exterior environmental conditions.

For buildings which incorporate pressure equalized rainscreen walls, the primary environmental separators (i.e., seals, insulation, etc.) are concealed and are not generally exposed to the elements.

The environmental factors that may have a direct impact on the building envelope include;

• A higher solar intensity resulting in higher exterior and interstitial surface temperatures and for the exposed components, higher levels of UV and resultant damage.

• A shift in the type, form, pattern, and intensity of precipitation, including an increase in the frequency of instances of freeze – thaw cycling, melting permafrost, freezing rain and rain on snow. (Shifts in precipitation patterns can also increase the number of times components may experience wetting and drying and increase frost penetration.)

• Shifts in the peaks and frequency of high humidity levels.

• Changes in seasonal range of temperatures combined with increased frequency and longevity of heat waves or cold snaps.

• Increased frequency & intensity of wind and flooding events.

These changes in temperature, moisture levels and the form of precipitation acting on the enclosure systems can lead to dimensional changes of materials which in turn can lead to cracking and fissuring in polymer-based materials such as vinyl cladding, window frames, sealants and gaskets. Similarly, thermal stress in the form of freeze-thaw cycles can lead to premature aging of porous materials such as stone, masonry and mortar.

Other environmental factors including any increase in dust, particulate matter, smoke and acid rain can also have significant implications for building envelopes. In addition to the effects of UV radiation, mechanical agents such as wind-driven dust or rain or rain loads themselves may act as structural loads and can contribute to premature or accelerated deterioration

Biological agents carried by the atmosphere can deposit fungi or moulds on surfaces while chemical agents transported by atmospheric moisture (e.g. rain or water vapour) or by direct deposition can lead to corrosion in metals or deterioration in concrete, stone, fenestration components, as well as roofing and cladding materials.

Summary of Potential Impact and Risks

• Increasing health and safety risks for occupants caused by a reduction in the quality of the indoor environment.
• Premature or accelerated deterioration.
• Reduction of design safety factors.
• Reduced service life and functionality of components and systems.
• Increased risk for catastrophic failure.
• Increased repair, maintenance, reserve fund contingencies and energy costs.
• Increases in service disruptions and emergencies.
• Increased liability as a result of premature aging or deterioration.

Another impact is related to the uncertainty caused by changing climactic conditions that may undermine the meteorological data we use to design our buildings and infrastructure.

Climate Change Testing and Computer Simulations: It is a relatively straight-forward building science exercise to stimulate at least some of the impacts of various climate change scenarios on full-scale mock-ups of building envelope assemblies in laboratory settings. Computer simulation might also prove useful.

Both of these strategies might assist in to determining what changes in design, building codes and building practice may assist in mitigating the potential impact for new and existing buildings.

Conclusions: Some strategies are already being formulated that may enable structures to resist the effects of climate change. Engineers are also taking a similar approach with regard to infrastructure components such as roads, bridges, electrical distribution systems and our water distribution/marine infrastructure.

Given the size and importance of our building stock and infrastructure it’s important that we continue to monitor the issue of climate change and continue to support the efforts Engineers Canada and their Public Infrastructure Engineering Vulnerability Committees.

It is also apparent that we also need to substantially increase the funding, research and general attention given to the topic as it is becoming increasingly obvious that the “political will’ to take any proactive measures is diminishing.

While the risks appear to be increasing the potential impact has moved beyond what was once considered an environmental concern to include long term political and financial issues that will eventually impact on energy production, agriculture, industry and transportation.

On a somewhat smaller scale in the building sector some professionals are suggesting these apparent changes will represent a huge long-term challenge for the people who deal with these components of modern buildings – architects, engineers, technologists and building scientists. In many ways adopting a proactive approach to the potential impact of climate change is also an opportunity for building professionals to take a leadership role.

About the Author: Brian Burton is an R& D Specialist for exp as is a Certified CGSB/ICPI Construction Inspector. brian.burton@exp.com Or visit www.exp.com

 Related Articles:

Changes in Commercial Building Envelopes

Walls of the Future – Commercial Building Enclosures

Walls of the Future – Commercial Building Enclosures and Climate Change

Launched in May 2011, Greening Greater Toronto’s Race to Reduce is a unique program that represents unprecedented collaboration between office building landlords and tenants to promote smarter energy use. It encourages behavioural and operational energy reduction measures through collaboration among landlords, tenants and employees. The race challenges landlords and tenants from the Toronto region to publicly commit to work together to reduce energy in their buildings and to reduce the total energy use in participating buildings by at least 10 percent over four years.

Brookfield Office Properties, a founding participating landlord in Race to Reduce, recently shared the business case for energy reduction projects with tenants from First Canadian Place, Exchange Tower and Lombard Place as it kicked off a campaign to sign up tenants for the Race to Reduce “smart energy” office challenge.

Brookfield Office Properties is committed to the continuous improvement of the energy performance and sustainability profile of its Canadian office portfolio, both in new developments and within existing buildings. The company will save close to 20 percent annually in energy use and $1.8 million annually in energy costs at First Canadian Place, thanks to capital, commissioning and energy management actions it has taken in the past year. Through its comprehensive environmental program – Sustainable Strategies for a Greener Tomorrow™ – the company continues to expand and enhance the features, systems and programs at each of its properties that foster energy and water efficiency and reduce landfill waste.

“These energy reduction measures are translating into significant savings for us and our tenants,” says Brian West, Vice President and Regional General Manager at Brookfield Office Properties.

Mike Wills, Director, Facilities Management at BMO Financial Group, an anchor tenant at First Canadian Place and a Race to Reduce participant, cited the impact that energy reduction measures can have with a retrofit of mercury lights and fixtures. By replacing existing fixtures with electronic ballasts, eliminating mercury bulbs and polychlorinated biphenyl (PCB) ballasts, BMO has realized an annual savings of more than 400 000 kilowatt hours of energy.

Total office space inventory in the Greater Toronto Area (GTA) is estimated at 15 million square metres (165 million square feet [sq. ft.]) in more than 1750 office buildings. These buildings account for more than 20 percent of the carbon emissions in the GTA and consume 37 percent of the electricity and 17 percent of the natural gas.

On average, tenant use of office space can represent 25 to 50 percent of a building’s total energy use. Both landlords and tenants have a role to play in energy reduction. By increasing the energy efficiency or reducing energy use, office building landlords and tenants can reduce operating costs, be more competitive and improve the region’s environment.

The Race has clearly struck a chord; the number of participants has doubled since it launched in May 2011. More than 350 major landlords and tenants have now registered 99 buildings representing almost 50 million sq. ft., or 25 percent of the GTA’s office space.

Race To Reduce Awards - Greening Our Workplaces Tenant Series – November 2011, hosted at Northam Realty Advisors’ Bell Trinity Square

To view additional examples of successful landlord/tenant collaboration, visit the Race to Reduce Media Kit page.

For more information on the energy efficiency initiatives of Brookfield Office Properties, visit its Sustainability page.

This article was orginally published in December 2011 edition of the CIPEC Heads Up Energy Efficiency Newletter.

Refurbishing Premises

If a landlord gives a tenant an option to extend its term, the landlord should insert a condition in the lease that the tenant must refurbish its premises on the expiry of the original term.  Why?  Because otherwise the tenant would not be obliged to do so. 

No Need to Mitigate on Abandonment

If a tenant abandons its premises and a landlord takes the position that the lease is still in full force and effect, and the landlord does not terminate the lease, is there an obligation on a landlord to mitigate (that is, lessen) its damages (that is, the landlord’s financial loss) by re-renting to a new tenant?  No! Why?  Because the lease has not been terminated and is still in effect.

Fill in the Blanks

A landlord should make sure that all the blanks in its lease are filled in.  Why?  Because mistakenly skipping one of these blanks could be costly to a landlord.  If a landlord and a tenant cannot agree on what should have gone in the blank space, a landlord may be forced to let a court interpret what the landlord and the tenant meant to say, in which event a court may select the meaning favoured by a tenant, at the landlord’s expense, or worse, if it is a dollar figure that has been left blank, the court may say that the tenant has no obligation to pay it.

Harvey Haber, Q.C., J.D., LSM, DSA, C. MED., C. ARB., B.A.  – He is senior partner at Goldman Sloan Nash & Haber LLP in Toronto. He specializes in Retail, Office & Industrial Leasing, Mediation and Arbitration and can be reached at haber@gsnh.com or by phone 416-597-3392.

By: Ashley McDonald

Many companies around the globe are starting to view sustainability as a key component of their business structure. Reducing fixed costs through energy efficiency measures has been a popular reaction to increasing energy prices. As well, this newfound control over back-burner expenses has continued to entice building owners in the wake of global economic instability. Despite the numerous reasons to “Go Green” (such as; cost saving, positive stakeholder perception, competitive edge in the marketplace, etc.), the IMFA explains that many existing buildings are only just being targeted for upgrades or renovations.  An article from UBC explains that many buildings in city cores are reaching the upper end of their life-cycles and are in need of upgrades. They continue to explain that these areas are also the most attractive to potential tenants. There are companies who realize the opportunities presented in the perfectly located, albeit, energy-hog type buildings. Huntington Properties, a commercial real-estate company based in Ottawa, Ontario, are making their mark on their City, upgrading outdated buildings in the next up-and-coming neighbourhoods of Ottawa’s Downtown.

In an interview Craig Whitten, of Huntington Properties, explained that the company has expanded their property management operations to include construction and renovation. As the general contractor on their first large scale renovation Huntington jumped at the “hidden opportunities at 396 Cooper Street”, Craig explained. They saw potential in the location of the property, right on the corner of Bank and Cooper. As the city’s core continues to grow and new talent set their sights on trendy downtown, the area is “sure to explode”. What’s more, the city of Ottawa has targeted Bank Street for a rebuild of municipal infrastructure. The buildings in the area span decades of development, from late 19^th century to new construction. 396 Cooper Street, a 21,000sqft, four storey commercial space, presented a number of challenges, including low grade windows, poor insulation and a dated facade.

Huntington Retrofit Before Image 396 Cooper Street Ottawa

The renovation focused on upgrading insulation, windows, the exterior walls, interior design, as well as the HVAC system. All these renovations were undertaken with minimal disturbance to the existing first floor tenants, Tim Horton’s and Henry’s. The walls received spray foam insulation increasing the R-Value to 38-42 RSI/m. The existing single pane windows were replaced with double pane low-e windows, greatly increasing their efficiency.  Both these measures can reduce heating and cooling costs, producing quick return on the initial investment, just 6 months or less for insulation. In conjunction with these projects, the façade received a stucco coat, further increasing insulation to the exterior walls and providing a quick, low-cost facelift for the building. The HVAC system upgrade was designed by a company based in Montreal and highlights state of the art technology to maximize efficiency. This new system brings fresh air from a roof top exchange to one of four heating heads on each floor. This eliminates loss of heated air as it’s moved through the building. These upgrades have created an all but brand new building to entice top tenants in the area.

With experience in energy conservation in commercial buildings, including rooftop solar installations, Craig explained that they expect a quick return on their total investment. As building energy efficiency is quickly becoming a top selling feature for interested tenants “the decision to upgrade the building wasn’t a difficult one. Out-dated buildings are a good price and the upgrades are not so daunting, especially with incentives.” Craig continued to explain that their renovations qualify 396 Cooper Street for BOMABESt certification. BOMABESt is a nationally recognized third-party certification body. They specialize in recognition of building efficiency upgrades and industry best practices.

As new construction is happening further from the cores, older buildings are being thrown into the spotlight as fantastic opportunities for investment. Tenants are being drawn to the pools of top talent in the city cores and will keep an eye out for energy efficient buildings to keep their fixed costs as low as they can. Ever increasing technology in the market place is making it easier to achieve maximum efficiency without the hefty price tag. As well, dedication to core improvement is taking on a life of its own. “We wanted to be a part of the movement, rebuilding Ottawa’s downtown.” Craig said humbly near the end of the interview. That kind of excitement can be felt in many cities throughout North America.

Ashley McDonald – special to Monster Commercial

By Gail Tyshynski

Existing buildings have a lot going for them. They are often conveniently located and they may offer more room for lease negotiation. However, an existing building means tenants must make adjustments to fit into it. If the building in question is a heritage building, there are further pros and cons to the choice. Does the building allow for the kind of technological infrastructure required in today’s businesses? Is the space flexible enough to suit the new ways employees work in the 21^st century? Are there strict rules about what can be done to the interior to make it workable?

Preserving Heritage Building Interior Space

For landlords, an existing building offers similar benefits and compromises. The location may be attractive and it may already have tenants in place, but how do you attract and keep the best tenants? What’s the best way to update the infrastructure for their needs? And in the case of a landlord owning a heritage building, how do you balance the needs of history with the needs of today’s tenants?

One answer to making an existing building an excellent choice is to build-out the office space using entirely modular elements. Start with the raw, warm shell then add everything from plug-and-play power and data to modular walls to furniture. This can create a contemporary, unique workplace without compromise. New solutions in this industry mean better customization for the end-user and a higher level of integration with the base building — without damage. Today’s modular walls have adaptable, non-damaging connections that allow intersection with the older base building. These flexible elements may also provide the tenant with the ability to grow, without having to lease extra real estate. Companies can also move in faster, as modular interiors are designed, specified and ordered during the base building retrofit – saving substantial time in the construction timeline.

Heritage Building Interior Made New

Start by performing an extensive lifecycle cost analysis to clarify your company’s agility requirements. Complete a two-to-five year post analysis of money previously spent on interior moves, additions and changes, then evaluate the total expenditure for data and electrical work over the same period of time.

Complete a full budget evaluation of movable walls, plug-and-play data and electrical needs based on your initial space plan prior to proceeding with working drawings/mechanical electrical drawings and specifications. This will save both time and costly duplication of work. Some modular interior manufacturers provide a cost comparison between the initial cost of standard construction and modular construction.

Modular Designs for Built Space

Work with an architectural movable wall product that is parametric in design. This allows for customization to reflect the exact needs of the tenant, rather than trying to fit a pre-set manufactured panel system into the space. Plus, a parametric wall also fits exactly to the building module. This is particularly important for existing spaces, as there is often little that can be done to the base building to properly accommodate a manufacturer’s standard offering.

Spider Technology Wiring

Another question to ask of the wall manufacturer is if their system is ‘product neutral.’ Does it support any manufacturer’s furniture and technology in or on the walls, such as TV monitors, speakers and interactive screens? This function allows tenants to re-use any of their legacy furniture, fixtures and equipment in the new space. For the plug-and-play power/data elements, it is important to find out if the components are suitable for ceiling and/or floor installation. Some are only appropriate for raised floor applications and some are only available in a zone box design, which is much more expensive than quick-connect splitters daisy-chained from the electrical box to the end-user outlets. Another tip for your electrical flexibility is to specify two or four-gang boxes. By specifying one empty section, you can accommodate future electrical or data requirements. (Ensure the box has movable metal septum.)

Approach the evaluation of existing space in a holistic approach. Study how both the physical and psychological factors impact the workplace and people. When reviewing the base building, ask questions. Does it offer access to natural light? What is the air quality like? How are the acoustics? What are your options for lighting in your space? Bring in an expert to inspect the mechanical, HVAC and electrical in the building.

If there are issues with any of these, the space may still work. If views and daylight are limited to one side of the space, put the private offices and closed rooms farthest away and add glass fronts. Leave the space closest to the window as open plan. If acoustics are not adequate for speech privacy, there are several methods to improve it, such as high-performance ceiling tiles or sound masking (this technology has seen radical improvements from its early days of ‘white noise’).

Finally, depending on how important your physical space is to your company’s brand, you can be on the lookout for existing buildings already outfitted with a modular interior. Work with your broker and design professional to find second generation building spaces with in-place Tenant Improvements similar to your needs. As long as they can be reconfigured to suit your particular needs and there is an option to replace or repaint surface tiles, this may be the most affordable answer for you.

Gail Tyshynski – Sr. Interior Designer & Regional Manager, DIRTT Environmental Solutions

The following is an excerpt from an article pending publication in CoreNet Global’s CORPORATE REAL ESTATE LEADER.

With many of today’s companies struggling to weather the storm in a difficult economy, the C-Suite is looking to cut operational expenses and trying to adopt a social responsibility strategy recognizing “green has become the new black.”

Realizing real estate comprises one of the top two or three largest impacts on their financial performance, the three important questions senior management are asking their corporate real estate/facilities executives are:

1. “What is our total cost of occupancy?”
2. “How can we reduce it?”
3. “How can our real estate assets serve our organization’s operational needs and contribute to our company’s desire to achieve environmental stewardship?”

Tough questions? Maybe, if the CRE professional doesn’t have access to the information needed to identify areas where costs can be cut. The first challenge in the equation is determining the cost categories that make up the “total cost of occupancy.”

A great place to start is by taking a look at the International Total Occupancy Cost Code developed by London-based IPD Occupiers. The code includes over 250 categories organized in the five super categories of:

1. Property Occupation (Rent, taxes, acquisition, debt service)
2. Adaptation and Equipment (Fit out, improvements, capital investment)
3. Building Operation (Energy/utilities, maintenance, repair, moves, churn, security, cleaning)
4. Business Support (Reception, catering, mail room)
5. Management (Fees for real estate, facilities and project management)

The next challenge is to determine where, within the enterprise, the information resides and be able to summarize and standardize the information across the portfolio of leased and owned properties. Once achieved, (no small feat given the resources available to the CRE professional and silos of information that exist in many organizations) the information is collected, analyzed, and prioritized a benchmark can be developed and the “bigger buckets” targeted for the greatest degree of cost savings.

The information then becomes actionable business intelligence that can be used as a foundation of a strategy.

In typical organizations, the top ten cost items for a leased facility are:

1. Net Rent
2. Rates (local property taxes)
3. Total utilities (energy + water)
4. Total repair & maintenance
5. Total property management
6. Total cleaning
7. Internal & external distribution
8. Service charges
9. Security
10. Catering & vending

“Think, Build, Operate”

With the total occupancy costs calculated and a cost benchmark established, the CRE professional can now answer senior management’s question #1.

To answer the subsequent questions, the CRE department will need to put together a strategic plan. Through facilitated sessions with internal constituents and outside consultants the process will help to develop a plan that will get the organization to “crawl, walk and then run.”

Along with a consultant CRE departments will co-develop a strategic and tactical solution unique to the organization might utilize a process driven approach that will challenge the internal team to:

THINK: What is the real estate portfolio’s current and desired future state?

BUILD: What are the specific initiatives to be implemented across the real estate/facilities department(s) and portfolio that bring about the desired efficiency, economic and environmental sustainability results?

OPERATE: How/who will implement the plan, what will become the KPIs to measure progress and define success, and how will the momentum be maintained until the desired future state is reached?

Departmental and Portfolio Efficiency

At a departmental level, in order to effectively bring about change, the CRE professional needs to be realistic about ‘where they are’ (current state) and where the enterprise ‘wants to be’ (future state). Is it simply to reduce operating costs, rationalize your portfolio, dispose of non-core assets or something much more?

A key component to determining whether the organization will be heading in the right direction is to articulate the KPIs they will use to assess the portfolio and processes and help them manage change. These KPIs become the “gauges on the dashboard” and determine how to measure success and whether they are driving costs out of the portfolio.

But, before addressing the overall portfolio of leased and owned facilities the CRE professional will be well served to look in the mirror and examine the internal business processes, departmental core competencies and the role outside service providers play. Getting the management piece addressed is the fundamental component can be streamlined and improved to set the efficiency train in motion.

At this stage it’s best to incorporate a plan of how to orchestrate the ”people” (who will implement and affect the desire results?); the “process” (what are the workflows that will be refined or developed that will become the framework for making and managing change?); and the “technology” (how will the use of technologies help the organization measure, manage, automate, and report on portfolio/building information about occupancy costs that will support strategic decision making?).
 
Tackling the low and high hanging fruit of the economics of the portfolio

The next piece of the puzzle is to identify and implement the specific initiatives that begin to carve out costs. The most efficient building in the portfolio is the one you no longer use because you’ve disposed it. While every organization is unique some common threads of initiatives to cut costs could be: 

• Deploying alternative workplace strategies
• Addressing operational efficiency of your owned facilities
• Reducing energy consumption
• Evaluating and executing leasing strategies into commercial properties that can contribute to your company’s sustainability goals
• Decreasing the utilization of expensive facilities with space management designed to show vacant and under performing facilities
• Developing the visibility into your under performing facilities
• Rationalizing your portfolio and consolidating staff/facilities to dispose of non-core assets

By effectively managing the size and cost of the portfolio, real estate executives can have a dramatic impact to their organizations’ bottom-line and profitability while contributing to corporate social responsibility (CSR) initiatives important to many companies today. 

The ‘holy grail’ – achieving environmental sustainability

In today’s new economy the challenge has become how to maintain profitability while moving your organization toward environmental stewardship.

While the debate about whether climate change is truly caused by the emission of greenhouse gases continues, it is clear that adopting environmental sustainability initiatives can contribute to the positive financial performance of the company.

Some of these practices that involve operational efficiency include:

• ‘Green’ and LEED certified design practices
• ‘Smart’ building systems
• Energy demand/consumption
• Use of renewable energy sources

It makes good business sense to adopt these enviro-friendly principles because it reduces costs and moves the organization toward societal responsibility of the environment. While “green has become the new black” it no longer means it creates “red ink.”

In developing a sustainability strategy plan the blue print starts with determining the overall sustainability goals of the organization and identify initiatives are already in place to address sustainability.

A contributing factor to company’s CSR strategy is for the CRE professional to bring the real estate perspective by:

• Evaluating the financial and environmental impact of capital investment decisions focused on resource consumption and carbon efficiency
• Outsourcing non-core services to ‘green, cleantech’ providers
• Streamlining and ’greening’ departmental workflows
• Automating corrective and preventive maintenance schedules and alerts to maintain facilities at peak resource and energy efficiency
• Establishing carbon disclosure reports and creating sustainability scorecards
• Exploring the feasibility and benefits of alternative and renewable energy sources (solar, wind, geothermal, hydroelectric, Co-generation, etc.)

By achieving greater efficiency of business workflows and facility operations, carving out occupancy costs and implementing environmental sustainability measures not only makes good business sense but, it’s the right thing to do for the environment.

Back in the day ‘tree hugging, do gooders’ were pushing for recycling, turning off the lights, adjusting the office thermostat and copying on both sides of paper. Being good to the environment seemed like an expensive nuisance. Now? It makes fantastic business sense due in large part to the fact that, “you don’t pay for what you don’t use.”

What do you think? What are your ideas of how you could implement cost avoidance initiatives that support an overall real estate strategy and help you don’t pay for what you don’t use?

Related Article:Green Lease to Protect Tenant Initiatives and Landlord’s Investment in Commercial Buildings