Green buildings have a number of different features that are great for the environment, but it turns out that they’re also great for the owners and landlords who rent them out.

A new study conducted at the University of Guelph shows that green office buildings have higher occupancy rates and more satisfied tenants.

Researchers reached this conclusion after analyzing ten years of data from one of North America’s largest commercial real estate firms. It examined many different kinds of variables, including monthly rents, lease renewals, energy and water consumption, and tenant satisfaction.

Higher Occupancy And Satisfaction

For nearly 300 green buildings in North America – 148 in Canada and 143 in the United States – green buildings scored better in these categories than their non-green counterparts. Buildings were only able to qualify for the study by meeting energy efficiency and sustainability standards based on LEED, BOMA BEST, and ENERGY STAR certification programs.

“This is one of the most in-depth analyses of sustainable and energy efficient building operations to date,” said Avis Devine, housing professor at Guelph.

Researchers found that occupancy rates in green buildings were higher in Canada and the United States by 18.7% and 9.5%, respectively. To some this may be surprising, considering that the average rent prices were 3.7% higher in both countries.

In Canada, tenant renewal rates were 5.6% higher for green buildings, and tenant satisfaction scores were 7% higher. Energy consumption was also much lower in green buildings. Researchers found that energy consumption per square foot was 14% lower in U.S. green buildings.

Unique And Precise

The study is a substantial due to its precise nature and the amount of data that was covered.

“Previous studies have suggested correlations between green buildings and financial outcomes but none have included such diverse metrics across a large portfolio, and covering such a substantial period of time,” said Devine.

The time reference is perhaps one of the best facets of the study that makes it unique. The 10-year period that the researchers analyzed stretched from 2004-2013, a time when North American housing markets went through boom, bust, and recovery periods.

The researchers hope that their study will allow green buildings to flourish in North American housing markets.

“Building owners and investors are affected by the choices they make on investments in energy and sustainability issues . . . This study is an important step toward mapping the business case for more sustainable building,” said Devine.

The full study has been published in the Journal of Portfolio Management.

 

Source: Consumer Affairs

New York-based Chetrit Group and local developer Ari Pearl’s plans for a $1 billion Miami River project have moved a step closer to reality.

A rendering of the Miami River project

A rendering of the Miami River project

The Miami City Commission late Thursday unanimously approved a development agreement and rezoning of a 10-acre site where Pearl and the Chetrit Group plan to build the mixed-used site that includes four towers, a hotel, shops, restaurants, and a public river walk with boat slips. There, a large section of Little Havana along the Miami River will get a major facelift.

To obtain city approval for higher density, the developers promised to invest $14 million into an affordable workforce housing fund, as well as $7 million for public infrastructure surrounding the project, including renovating nearby Jose Marti Park. Raymond Jungles has designed the plans for the park.

“This project is of city-wide importance,” the developers’ lawyer Melissa Tapanes Llahues told commissioners. “It makes the vision of an interconnected city a reality.”

A rendering of the Miami River project

A rendering of the Miami River project

Located between Southwest Second Avenue and Southwest Third Avenue, the Miami River and Southwest Seventh Street, the project will be built in five phases. The complex would have 1,678 residential units, 330 hotel rooms, 266,000 square feet of retail and office space, and more than 2,000 spaces. The first tower with 200 hotel rooms and 328 condos, Tapanes said, is scheduled for by the end of 2018. The developer is also getting 1.2 million square feet of “air rights” from the city at $17.82 a square foot, or $21 million, which is being used for the public improvements.

Joseph Chetrit

Joseph Chetrit

Pearl and the Chetrit Group have been working on the project’s design since they assembled the land for roughly $100 million last year. Some of the properties they acquired included the Finnegan’s River restaurant and the Pleasure Emporium adult superstore.

The developers and their architect, Kobi Karp, also consulted with the Miami River Commission on the site’s design which calls for restaurants and shops to line the river walk that will be accessible to Brickell and East Little Havana residents. There will also be a public gathering place at an I-95 underpass.

“This is a very exciting project in a blighted area that could use some enthusiasm,” said Miami River Commission Chairman Horacio Stuart Aguirre.

The commissioners also heard from a dozen residents and property owners who spoke in favor of the project. City Commissioner Frank Carrollo, whose district includes the site, gave the project a thumbs up after negotiating some more concessions from Pearl. Carrollo said the developers had agreed to contribute $14 million to the city’s workforce affordable housing fund and to set aside a space for the city to build a small paramedic station. The first $1 million is due when Pearl and Chetrit submit site plans for the towers, which they expect will be sometime in February 2016. Another $1 million is due once the first building permits are approved.

“This is a beautiful project,” Carrollo said. “I am glad to say I met with the developer and his team to address some issues

 

Source: The Real Deal

One day Miami’s Design District may produce electricity using renewable energies, and have buildings adorned with rooftop gardens and structures that serve as indoor farms, with multiple levels of crops mixed with fresh markets and restaurants.

CraigRobins, Rodolphe-el-Khoury and Vicente Guallart

CraigRobins, Rodolphe-el-Khoury and Vicente Guallart

University of Miami architecture students are collaborating with Design District developer Craig Robins on ideas to make the neighborhood more technologically and environmentally friendly.

During a class at the university’s Coral Gables campus on Monday, the students — who are divided into six two-member teams — gave Robins their first presentations on how the Design District can become a prototype for how cities of the future can incorporate smart technology and sustainable energy.

“The university was very interested in working with the Design District to develop our vision on how we can add more value,” said Vicente Guallart, a visiting professor who was previously the chief architect in Barcelona, Spain. “Technology is not only about upgrading old systems, but also to introduce new principles.”

Architecture school dean Rodolphe el-Khoury said the students are participating in a class that teaches them to embrace emerging technologies in the shaping and the planning of Miami neighborhoods.

“Guallart was the obvious choice to lead this effort given his track record in transforming Barcelona into a smart city,” el-Khoury said. “The Design District has been very open to new trends and new thinking with a very enlightened developer. We recognized there is a synergy between our efforts and Craig Robins’ agenda in seeking innovation.”

Each team presented graphics and data on six topics: energy consumption, urban agriculture, urban re-industrialization, social interaction, the environment, and mobility. The energy consumption team presented a heat map and proposed how to produce electricity in the Design District using renewable energies. The urban agriculture team presented a proposal for rooftop gardens and new buildings that serve as indoor farms with multiple levels of crops mixed with fresh markets and restaurants.

The urban re-industrialization team showed renderings of digital fabrication factories that would produce products made of recycled materials. The social interaction team used geotagged social media posts to determine which pockets of the Design District lack human activity and proposed placing retail stores and restaurants along those areas. The two other teams are still developing proposals that will be finalized in December.

Robins, president and CEO of Dacra, told the students he was impressed with all their ideas. However, he said that some of the proposals would not be practical in the Design District. For instance, Robins commended the urban agriculture team for suggesting a multi-level urban farm on a property facing Biscayne Boulevard and abutting I-195.

“The land you identified will eventually have a building,” Robins said. “One thing to look at is the zoning and maybe get an additional two to three floors on top of the building for an urban farm.”

Robins also said a factory making products from recycled material would have a hard time staying in business.

“The challenge is  that you ultimately need a successful product,” Robins said. “The gap between being able to get to that from something that is thrown away is the hard part.”

 

Source: The Real Deal

A Chinese investment group paid $38.5 million for less than 1 acre at 6747 Collins Ave. in Miami Beach.

China City Construction Company Da Tang Development and Management LLC struck the eight-figure deal with the Peebles Corp. for a 0.98-acre oceanfront site approved for high-density multifamily development.

The buyer, part of China City Construction Holding Group, has New York-based operations as well as offices in Miami, Los Angeles, San Francisco and San Diego. It operates six regional service centers in China, targeting high-profile investors looking to acquire U.S. properties.

China City Construction Co. acquired the site at 6747 Collins Ave. in Miami Beach.

China City Construction Co. acquired the site at 6747 Collins Ave. in Miami Beach.

Its new purchase sits between 67th and 69th Streets with the Deauville Beach Resort to the south and Sterling condominiums to the north.

Approved plans allow a 19-story development with 60 residential units and a 150-room condo hotel with gross building square footage of up to 93,600 square feet. The company appears to be wasting little time moving forward with plans for the site.

Dr. Shan-Jie Li, chief executive officer of American Da Tang Group

Dr. Shan-Jie Li, chief executive officer of American Da Tang Group

Information on its website shows CEO Shanjie Li and general manager Haibo Pan traveled to Miami and Atlantic City between March 31 and April 6 to scout development prospects. While in Miami, they met with real estate developers, architects and lawyers to create a land development plan, according to the site. Their meetings likely included CBRE Inc.‘s Miami-based hotel division since the real estate brokerage house announced Thursday it handled the massive sale.

CBRE executives Robert Taylor and Paul Weimer of the hotels division teamed with Gerard Yetming of the firm’s multifamily arm and Irving Padron of Engel & Volkers to represent Peebles Corp. They marketed the land as one of Miami Beach’s last vacant oceanfront properties.

“This beachfront site is ideally situated in one of the nation’s most sought-after real estate markets, a top-performing hotel market and a place where residential sales top $2,000 per square foot,” CBRE senior vice president Robert Taylor said.

Peebles chairman and CEO Donahue Peebles called the site a “prudent investment with immeasurable potential.”

“As the Peebles Corporation shifts focus to our large-scale projects in the Northeast, we will watch with great enthusiasm as China City Construction Co. brings this exciting development opportunity to life,” Peebles said.

American Da Tang Group and Borda Commercial Real Estate represented the buyers in the transaction.

 

Source: DBR

There’s a fierce battle being waged in Florida over access to one of our state’s greatest resources: the sun.

With the effects of climate change ever more obvious, solar is a scorching-hot policy topic, and we’re seeing a lot of activity around two competing solar ballot initiatives in Florida — one backed by solar advocates and the other by utility companies.

The result? Even for die-hard solar power believers, the fight has gotten beyond confusing. So here’s a breakdown of the green energy tussle:

What’s The Problem With Solar In Florida?

With our bounty of sunshine, the Sunshine State should be a model for solar. But Florida, which ranks third in the nation in rooftop solar energy potential, currently comes in at number 13 in the amount of solar energy generated. We also have some of the lowest solar investment in the country. Instead, consumers rely on Florida’s “dirty” energy mix — natural gas (62 percent), coal (21 percent), and nuclear (12 percent).

Why Are We Lagging So Far Behind?

For a long time, everybody thought solar panels were only for rich people. But that’s not the reality anymore — the equipment is now affordable and accessible. In many states, consumers purchase from among hundreds of companies that install rooftop solar panels at little or no cost. In California, for instance, companies lease rooftop solar equipment to homeowners and bill them monthly for the electricity created, which lets homeowners enter the market for little or no money down and pay as they go.

But in Florida, consumers who want to get solar are forced to rely on big utility companies, like Florida Power & Light, which aren’t making it easy or cheap. In fact, Florida is one of only four states that require solar energy be sold exclusively by utilities. The result is limited options for installing solar and increased upfront financial commitment for consumers, which creates a major obstacle for most people.

What’s The Proposal To Change It?

After it became clear that politicians weren’t going to get it done, some upstart citizen groups decided to take things into their own hands. They created a 2016 ballot initiative, which would open up the state’s solar market, giving consumers a number of options for getting solar panels themselves. Floridians for Solar Choice, the group behind the initiative, is backed by an unlikely alliance — from environmentalists to Tea Party libertarians — who view the lack of consumer choice as both harmful to the environment and an infringement on personal freedom.

If it succeeds, the ballot initiative would let voters decide if they want to change Florida’s constitution to allow businesses other than utilities to sell solar power to consumers. Homeowners would also get the flexibility to enter into contracts with solar companies, also known as Solar Power Purchase Agreements (SPPA). Florida would be the 47th state to allow SPPAs.

What’s The Process To Get This Passed?

Before the amendment can happen, it first has to get on the ballot for voters. To get there, the group must collect signatures from 683,149 Florida voters, or 8 percent of the votes cast in the 2012 presidential election, by February. They also have to raise money to be able to pay county election supervisors 10 cents for each signature submitted. And the ballot language must also get the green light from the Supreme Court (which is likely to happen this week).

Right now, the Solar Choice campaign has about 171,000 verified signatures with another 100,000 awaiting verification. It has raised $1.3 million, most of it from the Southern Alliance for Clean Energy. It’s also been endorsed by a slew of environmental groups, both local and national.

So Who’s Against This?

Who do you think? The utility companies, silly. A group called Consumers for Smart Solar is challenging the amendment with its own rival ballot initiative, which seeks to keep the solar market strictly in the hands of the utilities and prevent homeowners or businesses from contracting with solar companies. It was created with cash from utilities like FPL, Gulf Power Co., and Tampa Electric Co. as well as groups tied to the billionaire Koch brothers. (Much of the Kochs’ vast wealth comes from their oil refinery and pipeline business.)

But backers of expanded solar power say the amendment is purposely crafted to mix up voters at the polls. According to the Energy and Policy Institute, “Consumers for Smart Solar is a utility and fossil fuel-funded campaign designed to confuse voters, attack the pro-solar Floridians for Solar Choice Ballot initiative, and protect the monopoly utilities.”

How Do I Sign The Solar Choice Amendment?

Go here, download the petition, and mail it in. You cannot fill it out online.

 

Source: Miami New Times

Florida East Coast Realty obtained approval from the Federal Aviation Administration (FAA) for the height of two planned towers in downtown Miami, both designed to rise about 1,000 feet.

The FAA approved the designed height Florida East Coast’s 1,005-foot One Bayfront Plaza and the company’s 995-foot 1201 Brickell development. In a separate decision, the FAA recently approved the designed height of six Miami condo buildings by Related Group, including two taller than 800 feet.

The FAA had issued  preliminary notices of “presumed hazard” to Florida East Coast because the federal agency was concerned that the height of One Bayfront Plaza and 1201 Brickell could interfere with air traffic.

Florida East Coast designed 1201 Brickell as a twin-tower residential development with 787 units. One Bayfront Plaza is planned at a location on the west side of Biscayne Boulevard between Southeast 1 Street and Southeast 2 Street. The $1.4 billion project would include 768,000 square feet of office space. The mixed-use development also would encompass 643 hotel rooms, 97,000 square feet of retail space and 110,000 square feet of meeting and convention space.

The tallest building in Miami now is the Four Seasons hotel at 1435 Brickell Avenue, which is 789 feet tall. Florida East Coast will top that when it finishes its 822-foot Panorama Tower at 1101 Brickell Avenue, now under construction. Swire Properties eventually may have the tallest tower in town: The developer plans to build a 1,049-foot tower in a future phase of its Brickell City Centre development along South Miami Avenue between 8 Street and 6 Street.

 

Source: The Real Deal

According to a USGBC study, green building design is outpacing the growth of conventional construction sector in the US.

GreenJobsPopularity of  green building sector is rapidly increasing and it is set to create more the 2.3 million jobs for Americans, this year – reveals the 2015 Green Building Economic Impact Study report prepared by Booz Allen Hamilton.

Key findings of this study indicate that the contribution of green building industry is estimated to be more than $134.3 billion towards labor income for working Americans. Experts predict that by 2018, green building sector will create more than 3.3 million jobs, and will exceed one third of the total amount of jobs generated by the conventional construction industry in US. This will result in $190.3 billion towards labor earnings.

The study also dwelled into the economic contribution of sustainable buildings to the US economy and also quantified the economic impact of LEED certified green buildings. Today more than 2.3 million US workers are receiving $134 billion annually; this is because businesses, institutions and individual building owners are prioritizing sustainability for design, construction and operation of buildings. Consecutively this has also led to growing demand of green building programs such as LEED.

“Our research shows that green building has created millions of jobs and contributed hundreds of billions of dollars to the U.S. economy, with the construction of LEED-certified buildings accounting for about 40 percent of green construction’s overall contribution to GDP in 2015. This industry is certainly on the rise, and aggressive growth in the green building sector is anticipated over the next four years.” Said David Erne, a Senior Associate at Booz Allen.

GreenJobs2In addition to jobs, GDP and labor earnings, prioritization of green building design will also significantly influence tax contributions of individual states and environmental asset indicators at both national and state levels. It is estimated that construction projects for LEED buildings will generate total earnings that will reach around $8.4 billion till 2018. It is also anticipated that the green building sector will generate 1.26 million jobs from 2015 to 2018, in Texas.

GreenJobs3Compared to conventional buildings, a green building with LEED standards, uses less energy and water, it makes optimized use of natural resources and generates lower utility bills. Green homes generate less waste, and cause minimum impact on the land it is built. Living in a green building is healthier and economical for its occupants. Naturally the demand and popularity of green design has increased. As the sector progresses it will also affect the growth green building materials. A BBC research report has indicated that green builting material market will reach $69 billion by 2019.

GreenJobs4While the USGBC study mainly talks about the growth of green building design in US, the trend is also gaining pace in UK, Australia and Middle East and over 60 other countries.

Earlier there were no clear drivers of green design, however the 2012 survey reported that client and market demand are the key drivers for green building design adoption. This demand has just kept on increasing and there is no looking back – today –

  • Firms are finding business value and immense opportunities from green buildings – this not only includes economic benefits but also an opportunity to contribute towards environmentally responsible building design.
  • Building owners and developers across the globe are prioritizing a sustainable approach towards building design. Becoming self-reliant for energy needs has become a popular trend as the NZEB wave has gripped the industry.
  • Today home owners are also demanding for more than just plush interiors and impressive exteriors, they want lower utility bills without compromising on comfort and aesthetics.

Green building design plays a pivotal role in introducing energy efficiency in buildings and hence lower utility bills and has set a benchmark for design, construction and operation of buildings.

 

Source: Archinect

When Avra Jain bought the Vagabond Hotel in Miami’s MiMo district two years ago, she couldn’t capture the interest of traditional real estate investors.

Comparable rates along Biscayne Boulevard were $60 a night — or $20 an hour, she quipped. Now, after redeveloping the property into a boutique hotel with financial backing from friends and family, off-season rates stand at $159 a night, and the coming season will command $229 to $259 per night.

Changes taking place in the commercial real estate market in neighborhoods like MiMo and Wynwood are spurring widespread revitalization in Miami and creating other newly emerging areas, panelists said Friday at the Miami Association of Realtors’ RCA Super Conference, held at the Biltmore Hotel in Coral Gables.

In MiMo, Jain realized that dilapidated motels were hurting the area, so she purchased seven motels along the Biscayne Boulevard strip and shut them down. “And that is when the neighborhood started to change,” she said during a panel, “Emerging Miami: Miami River, Lemon City & Little River.”

Much more change is on the horizon. In a year, the MiMo District “will be lit up with neon and restaurants and will surprise everybody,” she told more than 100 conference attendees. Retail rents are rising rapidly, and now stand at about $50 to $70 per square foot, and $45 for second floor office space, Jain said.

Meanwhile, as Miami’s once gritty Wynwood transforms and rents there rise as well, art galleries, local businesses and creative types are being priced out, and are moving to more affordable and newly emerging — yet historic — areas like Little River and Lemon City, the panelists said. That’s where Thomas Conway’s MADE, a new co-working space for creative entrepreneurs, has recently opened. Creating a sense of place is key, the panelists said.

“We’re basically being the stewards of revitalizing these neighborhoods,” said Tony Cho, founder and CEO of Metro 1.

With investors redeveloping property, Wynwood has quickly become a thriving neighborhood, with a curated collection of new shops, restaurants, bars and breweries that attract a pedestrian crowd at all hours of the night. “It’s remarkable,” Cho said of the transformation. “It has exceeded my original expectations.”

Along with that, commercial rents are now as high as $80 per square foot on Northwest Second Avenue in Wynwood — compared to $10 per square foot 10 years ago, Cho said. In fact, Starbucks and other national retailers are starting to look into the area. That poses a challenge to retaining the neighborhood feel, the panelists said.

“People are fearful that Wynwood will turn into Lincoln Road,” Cho said.

The speed of transformation is accelerating, and with so much commercial activity in Miami, Jain said she does not worry about a downturn similar to what South Florida experienced in the last cycle.

“I don’t think Miami necessarily has to be roller coaster any more,” Jain said, citing commercial markets in Miami that are still underserved and the continuing demand for boutique hotels. “I’m starting to see it differently.”

 

Source: The Real Deal