PREFACE BY GRANT W. AUSTIN, MAI, MMRS, M.S., MRICS

As a real property valuation expert that researches and writes on the value impacts of sustainability features/characteristics (also developer of a new course for Boston Architectural College on "The Economics of Green Building" - to be available for AIA CE), the property value impact of "self-powered" shopping centers is significant.   New issues to be considered by appraisers include the obvious, lower operating expenses, but also the less obvious: changes to depreciation, maintenance and repair, management expense, projected vacancy, tenant reimbursements, tenant re-fit allowance, occupancy, type of tenancy and therefore collection allowance deduction, management expense, and with an altered risk profile for the property, even the applicable reversionary value, discount rate and capitalization rate!

The following post is from Timothy Boe's Eco-Times Magazine (www.ecotimesmagazine.com) and I recommend that you add it to your favorites as an informative green publication. 

SELF-POWERED SHOPPING CENTERS THROUGH FOUND POWER® 
by Johanna Juntunen

In the very near future all commercial buildings could be self-powered, according to Timothy Boe, NCARB, AIA of BA Eco-tects, www.eco-tects.com. The obvious advantages for buildings and centers to be able to by-pass the grid are enormous, both financially and environmentally.

That is very encouraging news considering that buildings are the quiet, unmoving users of much of our energy through electricity, heating and water consumption. The U.S. Energy Department estimates that buildings account for a massive 39% of U.S. energy consumption, while producing 43% of our carbon-dioxide (CO2) emissions.

The Wall Street Journal states in its Energy Report, April 27, 2009:
"The growing awareness of this fact helps explain why green building is one of the most pervasive trends in the construction industry – even as the economy struggles, and homebuilding is at its lowest level in a generation."

Building green by utilizing the system suggested by Boe creates and retains local jobs, promotes economic revitalization, and increases property values.

Design by: BOE Architects, Inc.
Rendering by: RBA Studios

The main advantage of Self Powered Properties is that they provide the means and methods for buildings and centers to become energy independent self-powered buildings (SPB) 24/7 in the most direct and efficient way. It harvests untapped resources that reside hidden right before our eyes: sunshine, air currents, and geo-thermal energy. This means reduced operating costs.

A study done in collaboration with the US Green Building Council (USGBC) concluded that the initial costs for implementing regular green building design methods averaged in an upfront increase of barely 2%, but resulted in life cycle savings in the range of over 20% of construction costs totals. The USGBC has projected a payback time of less than 12 to 24 months to recover the initial costs of green building features.

Among the benefits of building green according to the USGBC, are over 40 percent water savings, at least 30 to 50 percent energy savings, 8 to 9 percent decreases in total operating costs, more than 3% higher occupancy rates and at least 3% higher rents. Since this study was initially published in 2003 the advancement of improved green building methods and products has demonstrated a favorable impact, enhancing these statistics even more.

Solutions to sustainability already exist, in potential, on a site per site basis. Leaving no stone unturned, rooftops, parking lots, easements, and utility areas may be examined for their viability as energy collectors. Viewing the built environment as a whole, the systems and solutions suggested by BA Eco-tects would turn these same underutilized areas into living assets. Thus self-powered shopping centers become organically living buildings and communities that operate as ecosystems.

"Many people mistakenly believe that they have considered all the renewable energy options – however they have drawn their conclusions from outdated, fixed ideas. Looking for power in the most obvious places such as parking lots and building facades opens an entirely new arena and "found" possibilities," says Timothy Boe, a board member of BA Eco-tects.

Although self-powered buildings are utilitarian in purpose, they can be designed to be visually engaging and architecturally pleasing. This means increased business since well-designed and attractive shopping centers attract more visitors.

Instead of draining power from the local utility grid, shopping centers featuring Self Powered energy systems may not only provide their own electrical needs but also for those of some of their surrounding properties. This is especially relevant when support from the neighboring community is needed in order to obtain approvals to build new structures or to expand existing facilities.

Employing the most essential premise of conservation and re-use, Self Powered energy systems answer the energy challenges today while saving on operating costs, and building for a sustainable future – nothing short of a second Industrial Revolution.