Southern California Industrial Real Estate Blog

SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – SEPTEMBER 2010

By Jodi Summers

There’s a lot of blah blah blah as to the recovery has stagnated and how the universe is on the precipice of collapsing into itself, that’s a lot of pre-election fervor. The experts say, “Fundamentally both the economy and corporate balance sheets are in better shape than reflected in the current sentiment.”

In the industrial sector, manufacturing employers continue to add payroll for the seventh straight month, adding 36,000 positions in July. According to a recent Research Brief blog from Marcus & Millichap, an 8% year-to-date rise in imports spurred the creation of 25,000 trade, transportation and utilities positions.

Here are the CoStar Group’s latest Industrial Market Statistics

Ø 13 million SF of positive net absorption in 2Q 2010. This is the first positive reading since mid-2008.

Ø .The national vacancy rate decreased from 10.1% to 10%, the first drop in over two years. Availability also slightly decreased from 14.8% to 14.7%.

Ø Real Capital Analytics reports that single tenant industrial cap rates had a weighted average of 8.5% in 1Q 2010. 85 basis points higher than the same period last year.

Industrial Market Conditions

Ø Occupancies have leveled off.

Ø Many tenants choose not to move and instead remain in their current space and negotiate more favorable terms.

Ø Due to negative demand, development is down.

Current Industrial Trends

Ø Companies have shifted to leasing space rather than owning, preferring to invest their capital in their core products/ product development (i.e. Coca Cola).

Ø Current Buildings that have been around for decades are becoming functionally obsolescent to meet modern design specifications.

Ø Rental rates are low; demand will need to raise rents, raising cap rates, spurring new development.

Positive Indicators

Ø When demand finally turns around, industrial has a short construction cycle and can respond quickly.

Ø Building obsolesces will account for a huge increase in demand beyond the economic recovery.

Hang on, we will get through this.

We’re here to help you with industrial properties. Please contact Jodi Summers - jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://blog.marcusmillichap.com/

http://marcusmillichap.files.wordpress.com/2010/08/graph_lg3.png

http://www.edd.ca.gov/About_EDD/pdf/urate201010.pdf

http://www.globest.com/blogs/netleaseinsider/-301645-1.html?ET=globest:e23095:277110a:&st=email

http://www.labormarketinfo.edd.ca.gov/?pageid=1003

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SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – AUGUST 2010

By Jodi Summers

Industrial property prices are on the rise! Port-area California industrial prices stabilized early in year, and now, the U.S. industrial real estate is headed into recovery after six quarters of negative absorption.

“For owners, the warehouse sector is still working through some significant market turbulence,” the CoStar Group reported in its State of the Commercial Real Estate Industry Mid-Year 2010 Industrial Review & Outlook. “Broad-based growth in rental rates probably won’t resume until 2011, and the investment sales market remains choppy, with total transaction volume still well below the historical average. Liquidity hasn’t yet returned for owners and industrial capitalization rates and pricing, though improving, still show a mixed picture.”

In Los Angeles County, Grubb + Ellis reports that for 2^nd quarter, the vacancy rate declined slightly for the first time in five consecutive quarters to 3.3%, while quarterly net absorption was positive for the first time in over a year with 471,861 square feet. Asking rental rates continued their year-and-a-half-long decline, reaching a quarterly low of $0.45 per square foot –a rate not seen since the late 90s — inspiring sale and leasing activity to a four-year-high of 11.4 million square feet.

Our positive net absorption is on par for national industrial real estate Country-wide, records report 13 million square feet of positive net absorption in the second quarter — the first positive reading since mid-2008. This is huge, as it brings to a close to, what the experts call, “A period that has experienced far more severe and dramatic demand declines than the years of the dot-com collapse and economic recession of the early 2000s.”

Records show that in 2009, every major metro market except Houston saw negative absorption, with significant losses in Chicago, San Francisco and South Florida. Oakland and Los Angeles began to strengthen in the first quarter. The ports of Los Angeles and Long Beach have been aggressively pursuing export development in Los Angeles County, strengthening our warehouse market in the process.

In Los Angeles County, the Downtown area saw its industrial vacancy rate decrease by -0.1% year-to-year, Mid-Cities increase by +1.9%, San Fernando Valley by +0.2% and the San Gabriel Valley decreasing by -0.5 percentage points over the second quarter of last year. Finally, the South Bay area industrial vacancy rate slightly increased in the second quarter when compared to the second quarter of last year.

Our port numbers are impressive. The Los Angeles Economic Development Corporation reports that the total number of containers handled in June at the ports of Los Angeles and Long Beach rose by +29.6 percent on a year-over-year basis to 1,250,418 TEUs (twenty-foot equivalent units). Despite the recession, this was the seventh consecutive month of year-to-year increases and third consecutive month of TEU container totals above one million. Impressively, the Port of Los Angeles experienced the largest gain in trade volumes over the year, as total containers grew by +32.3 percent in June. Noteworthy economic achievement: this was the busiest June in the history of the Port of Los Angeles, even surpassing June in the peak year of 2006. The Port of Long Beach also witnessed a very strong gain in volumes as total containers were up by +25.8 percent on a year-to-year basis.

The success of our ports, is driving the regional industrial market. In second-quarter 2010 more than half of the top 20 industrial markets tracked by CoStar saw positive absorption, led by Southern California. Warehouse leasing in the Inland Empire led the country with 4.8 million square feet, followed Orange County, CA (4.5 million sf), and far ahead of the other growth areas - South Florida and Philadelphia, which each gained 2.8 million sf.

Don’t get too excited, liquidity has yet to return to the industrial market. Properties are sitting on the market far too long, and many are not being sold. Deals that are being done tend to involve creative financing and seller carrybacks.

If your investing, CoStar notes that cap rates on industrial deals of $20 million and above fell to 8%, due to demand by institutional investors who will pay more for high-quality assets. Low-profile industrial investments are yielding cap rates from 8.5% to 9%.

“Net leases or really sale leasebacks play an important role in the market and that role will continue to grow as companies turn to the real estate that they own in order to generate capital,” observes Gordon Whiting, founder and Senior Portfolio Manager of Angelo. “It is also a good time to be an investor in net leased real estate as prices are lower than they have been in many years, cap rates are up and they provide steady current income with the possibility for long term capital gains.”

We’re here to help you with industrial properties. Please contact Jodi Summers - jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.globest.com/blogs/netleaseinsider/-300881-1.html?ET=globest:e22792:277110a:&st=email

http://www.portoflosangeles.org/maritime/stats.asp,http://www.polb.com

http://www.portofoakland.com/

http://www.laedc.org/eedge/index.html#7

http://www.costar.com/News/Article.aspx?id=222199DB507C4529AEB9E4E34A07CCFB&ref=100&iid=191&cid=383F14EEE265B182474DA2442BACBBBF

http://www.realestatechannel.com/industrial-market-strength-forecast.jpg

http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef0120a876ad50970b-600wi

http://www.laedc.org/businessscan/charts/0710/vacancy.jpg

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http://www.realestatechannel.com/commercial.php

http://www.grubb-ellis.com/SitePages/GetFileFromDB.ashx?type=9&id=672

GLOBAL USE OF GREEN BUILDING PRODUCTS SKYROCKETING

GLOBAL USE OF GREEN BUILDING PRODUCTS SKYROCKETING

By Jodi Summers

Keep studying those lists of top rated green building products, because global purchasing of green building products will grow to $571 billion by 2013. This growth is more than tenfold from the $455.3 billion spent on green materials in 2008, notes the study by Allied Business Intelligence Research.

“Innovation, particularly in wood and insulation, is a key driver behind the growth of green building products,” observes Larry Fisher, research director of ABI Research’s next generation practice.

“The most significant driver of growth in the green building materials sector is concern for the environment. While environmental preservation has been a topic of discussion for decades, only recently has the level of concern for the environment driven governments, manufacturers and consumers to respond.”

The study notes that businessmen and builders will look toward products with greater energy efficiency produced in an environmentally-friendly manner. Preferred lumber and wood products will come from well-managed forests.

Now if we can only figure out an efficient way to make drinkable ocean water.

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http://www.purchasing.com/article/439362-Buying_of_green_building_products_to_increase.php

http://www.mossgreenchildrensbooks.co.uk/wp-content/uploads/2009/10/iStock_000001111800Small-2.jpg

SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – JULY 2010

by Jodi Summers

The price on industrial properties in Los Angeles County has hit bottom, and will soon be on the rise. Los Angeles, with its “natural deep-water harbor, large-scale logistics industry and export-oriented manufacturing, is well positioned to benefit from an export-driven expansion and we expect (Los Angeles) to recover more rapidly than California as a whole,” proclaims UCLA Anderson economist Julia Thornton Snider in a report on the L.A. economy “Emerging from Quicksand.”

Meantime, according to Clarus Market Metrics, the Los Angeles County Industrial Real Estate Market was stagnant in June. Their records show nothing sold…

…. and nothing went under contract….

BUT despite this report, we know first hand deals are still being made. Among other factors, the ports of Los Angeles and Long Beach have been aggressively persuing export development in Los Angeles county. The Port of Long Beach reported a total of 138,659 loaded outbound TEUs (excluding empties) in the month of May, an increase from 121,064 TEUs in May 2009 (+14.1%). The Port of Los Angeles saw a total of 160,621 loaded outbound TEUs for the month of May, an increase of +5.3% from May 2009.

Total volume @ the Port of Long Beach and the Port of Los Angeles rose by +22.1% on a year-to-year basis to 1,214,136 TEUs (twenty-foot equivalent units). This was the sixth consecutive month of year-to-year increases and the second consecutive month of TEU totals above one million. The Port of Long Beach experienced the largest gain in trade volumes over the year, as total containers grew by +25.1% in May. The Port of Los Angeles also witnessed a significant gain in volumes as total containers were up by +19.9% on a year-to-year basis.

This has translated into a rise in the number of industrial properties for sale. Contrasting Jun-08 vs. Jun-10: The number of for sale properties is up 3%.

This increase in volume supports the UCLA Anderson report “Emerging from Quicksand.” Thornton Snider offers evidence that a recovery is under way, pointing out that exports turned the tide first and provide the most natural engine for recovery, with housing now showing signs of a recovery as well. Job growth is the necessary next step and the forecast says that it will start to revive this year, although unemployment will remain “painfully high” through 2012.

Locally, our real estate news is positive. According to the midyear UCLA Anderson Forecast, the Los Angeles regional economy will likely recover faster than the rest of the state, but the economic recovery in California is going to be a slow climb at all levels. The forecast, covering markets from the local level in California to the national economy, foresees a tepid recovery with unemployment levels slowly declining…just as state unemployment dropped from12.% in April to 12.4% in May.

The state “will grow slower than the US and a slow recovery in jobs will leave unemployment at 12.1% for the year,” Nickelsburg notes. “The latter part of our forecast (through 2012) calls for health care, professional and business services, exports, construction and technology-related manufacturing sectors to generate a bit more robust growth in California.”

We’re here to help you with industrial properties. Please contact Jodi Summers – jodi@jodisummers.com or 310.392.1211 for details.

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http://www.globest.com/news/1684_1684/losangeles/300380-1.html?ET=globest:e22415:277110a:&st=email

http://www.laedc.org/eedge/index.html#1

https://www.terradatum.com/agentmetricsonline/property_type_selection.td

http://www.portoflosangeles.org/maritime/stats.asp

http://www.polb.com/

SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – JUNE 2010

By Jodi Summers

In the first quarter of 2010, the industrial vacancy rate in L.A. County stood at 3.4 percent. Local industrial property owners are concerned because this is the first stretch the Los Angeles County industrial vacancy has been above 3% since the first quarter of 2004. (We were @ 2.7% in 1Q 2009.)

On the bright side, Los Angeles has the second strongest industrial property market in the country, this side of Oakland. We are complaining about vacancies, but let’s put it in perspective, industrial availability nationally was at 14% in 1Q 2010.

Our slow economy has weakened demand for industrial space in all parts of Los Angeles County. The Los Angeles Economic Development Corporation reports that downtown area saw its industrial vacancy rate increase by +0.9% year-to-year, Mid-Cities by +2.8%, San Fernando Valley by +1.1% and the San Gabriel Valley increasing by +1.9 percentage points over the first quarter of last year. Finally, the South Bay area industrial vacancy rate slightly increased in the first quarter when compared to the first quarter of last year.

Those who know say industrial rents are close to stabilizing. Notes Lawrence Yun, chief economist for the National Association of Realtors, “These sectors should see gradual improvement after jobs pick up and create additional demand for space, meaning a broader improvement in commercial real estate is likely in 2011.”

Here are the reasons why our industrial real estate sector with strengthen:

• Los Angeles is the largest manufacturing center in the U.S., employing 376,500 workers in 2007. The most important sectors are: apparel with 56,700 workers; fabricated metals with 49,100 workers; food products with 43,000 workers; aerospace products & parts with 38,100 workers; and search, detection & navigation products with 26,987 workers.

• International trade is a major driver of the area’s economy. The Los Angeles Customs District - which includes the ports of Long Beach and Los Angeles, Port Hueneme, and Los Angeles International Airport -is the nation’s largest. The value of two-way trade passing through Los Angeles totaled $357.3 billion in 2008, compared with $353.4 billion for second-place New York. Major investments are under way to expand the ports, LAX airport and related transportation facilities in Los Angeles County. The International Trade Trends & Impacts report by the LAEDC forecasts import and export trade through the Los Angeles Customs District should increase by 9% to $308.5 billion, while the number of containers moved at the ports of Los Angeles and Long Beach will grow by 10.2% in 2010.

“The global economic downturn was a huge problem in 2009, as the economies of four of the Los Angeles Customs District’s top five trading partners dropped into recession,” said LAEDC Chief Economist Nancy Sidhu, Ph.D. “However, all five economies have now returned to growth mode, which bodes well for international trade activity in 2010.”

The steady increase of export volumes helped by the early recovery in the Asian economies will contribute to the growth in international trade activity. It is also expected that Southern California will strengthen economic and personal ties with China.

The good news is that L.A. is strengthening its port and transportation hubs to accommodate the projected growth.

“Capacity at the local ports has been a concern in the past, but expansion plans are moving again,” observes LAEDC Founding Economist Jack Kyser.

In addition to the port terminal expansion projects, both railroads serving Southern California have increased their track capacity to important destinations in the Midwest and Southeast. The Federal government’s economic stimulus package and the possible implementation of Mayor Antonio Villaraigosa’s 30/10 Initiative is expected help fund key highway and bridge projects in the Los Angeles region.

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http://www.costar.com/News/Article.aspx?id=359D8A406145159176A40807B924DC84

http://www.grubb-ellis.com/research/reports.aspx

http://www.laedc.org/businessscan/charts/0510/vacancy_area.jpg

http://www.laedc.org/businessscan/charts/0510/vacancy.jpg

http://latimesblogs.latimes.com/money_co/2010/05/vacancy-rates-will-continue-to-rise-in-most-types-of-commercial-real-estate-such-as-office-and-industrial-buildings-until-the.html

http://www.laedc.org/reports/LA%20County%20Profile.pdf

http://www.laedc.org/newsroom/releases/2010/100512_InternationalTrade.pdf

INDUSTRIAL REAL ESTATE SNAPSHOT – MAY 2010

By Jodi Summers

Industrial property owners, it’s time to get a little giddy…the market is coming back. New research from a variety of studies indicates that industrial rents are very likely to increase in many markets in 2011 and even more broadly in 2012.

AMB Property Corp. research shows, following eight quarters of negative net absorption, national industrial availability reached a historic high of 13.9% at the end of the fourth quarter, AND 2009 experienced the worst industrial net absorption on record at a negative 265 million square feet. Encouragingly, this negative trend decelerated over the course of the year, slowing to a negative 38 million square feet in the fourth quarter. Tempering this drop is a halt in new construction, which came in at an all-time low of 71 million square feet in 2009.

“Despite these challenging head winds, our analysis indicates that not only will demand recover, but it has already begun to do so in some submarkets,” observes David Twist, vice president of research for AMB Property Corp. “In fact, we may have reached an inflection point in many coastal markets during the fourth quarter, as demand was flat and availability was unchanged at 12.1%.”

GOTTA LOVE THE BEACH

The renewed strength of the coastal industrial market is confirmed by a new report from Colliers International that notes that industrial occupancy rates for commercial space in and around the Oakland property market appear to have stabilized. Like Los Angeles, Oakland is one of the most active container shipping hubs on the Pacific Ocean and this has far-reaching implications for the industrial market on a long-term basis.

In SoCal, take comfort in knowing that despite the recession, Los Angeles County remains the nation’s largest manufacturing center (based on jobs) and is home to the biggest port complex in the U.S. Since the economic downturn, declining global demand for U.S exports and a steep drop in domestic demand for imported goods led to a sharp slowdown in port activity. SoCal’s manufacturing and logistics industries, both of which are major users of industrial space, suffered as a result. However, as recovery began to take hold in other countries, local trade activity, particularly exports, started to show signs of life in late 2009.

The Los Angeles County Economic Development Corporation notes that the market for industrial property in Los Angeles County has shown remarkable resiliency. In spite of an increase in vacancy rates to 3.3% during the fourth quarter of 2009 from 2.2% at the end of 2008 (and 1.6% a year earlier), the industrial vacancy rate in Los Angeles County remained the lowest in the nation. Orange County’s industrial real estate market fared less well, ending the year with a 6.7% vacancy rate, up from 5.7% a year ago. california shipping ports.

For the record, California maintained its position as the second largest state exporter in the first quarter, with total monthly exports averaging around $10.4 billion. Exports in February were up by +13.7% over the year, the fourth consecutive year-to-year increase.

2-PART RECOVERY

AMB projects that the industrial rental rate recovery while evolve in two phases. First will be the psychological effect between landlords and customers as they anticipate improving fundamentals. “Landlords will subsequently hold firm on rents, while customers will try to lock in longer terms at today’s unsustainably low rates,” Twist relates.

The second phase will be driven by actual improving industrial market fundamentals. As demand gains momentum and availability falls, rents will again rise, eventually requiring new construction.

AMB’s model implies the overall US market would likely see rental rate growth as early as 2011, with equilibrium reached by 2012. So as the US market moves toward 10% availability over the next two years, rents can be expected to reach levels necessary to support new construction. According to AMB data, rents will grow by more than 30% over the next three to four years.

Of course, this implies that the Los Angeles area industrial properties will again grow strong. Remember, our current vacancy rate is at 3.3%, according to the LAEDC – and where is there the space to build large industrial spaces without getting caught in a nightmare of traffic – Perris or Poway? Watch the price of industrial properties climb to new highs in the next decade.

REASONS FOR CONFIDENCE

Indicators show that the demand for industrial real estate, in areas such as production and trade, are clearly rebounding. “The consensus forecast for global trade and production suggests that more than 500 million square feet of demand could be realized globally in the next few years, driving the availability rate to equilibrium levels in 2012,” summarizes Twist.

The reports conclude: improving economic condition should push up industrial rents to levels necessary to support new construction requiring in the coming years. Industrial owners, it’s finally time for a happy dance…

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http://www.globest.com/news/1635_1635/insider/184343-1.html?sector=industrial

http://www.globest.com/news/1643_1643/sanfrancisco/184514-1.html

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http://www.laedc.org/eedge/index.html#7

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L.A. COUNTY INDUSTRIAL PROPERTY SNAPSHOT – FEBRUARY 2010

Signs of Hope

By Jodi Summers

Look forward, better times are on the horizon. U.S. economic growth surged during the fourth quarter!! According to estimates of the Bureau of Economic Analysis, the U.S. economy bounced up by +5.7% last quarter (seasonally adjusted annual rate). This pace was the biggest increase since the third quarter of 2003.

This growth impacted the industrial sector in several ways:

* Industrial production increased. As output grew, the net rate at which firms drew down inventories plunged as many businesses decided to produce more goods and sell less out of inventory. This change supplied the single biggest boost to the economy, adding a celebratory +3.4 percentage points to the quarter’s growth rate.

* Exports continued to grow rapidly, which contributed +1.9 percentage points to the quarterly growth rate.

The industrial market needs these signs of optimism as, according to Clarus Market Metrics, contrasting Jan-08 vs. Jan-10, the median price of for sale properties is down 47% and the median price of sold properties is down 100%…so Los Angeles County industrial properties need all the stimulus they can get.

Hope is on the horizon. CoStar commercial real estate service reports that while industrial vacancies stubbornly high across the country, they are now flattening. Leasing activity is starting to pick up and, unlike previous downturns, the market is not plagued by an overhang of new supply. Locally, there is still a lot of volume on the market. Comparing Jan-08 vs. Jan-10, the number of for sale properties is up 48% and the number of sold properties is down 100%

Jan-08 vs. Jan-10 shows the number of expired properties is up 100%. Prices have dropped so low, that those who do not have to sell, are waiting and holding. Buyers and sellers are coming to terms with losses inflicted by the recession and the bursting of the real estate bubble, and realizing 2010 can only be brighter.

On the Westside, “There are preliminary signs of price stabilization in leases and sales,” in the industrial market, concludes Klabin Co. principal Luke Staubitz. Transaction volume, which began building last September, “will continue to increase throughout the year with tenants holding the pocket aces,” Staubitz said.

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We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com or call 310.392.1211. We look forward to working with you in your next real estate transaction.

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http://www.cirbdata.com/

https://www.terradatum.com/

http://www.SoCalGreenRealEstateBlog.com

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http://www.laedc.org/eedge/index.html#1

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LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – JANUARY 2010

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – JANUARY 2010

By Jodi Summers

2009 was an extremely disappointing year for the industrial marketplace, and 2010 is predicted to be as dissatisfying as well.

“Commercial real estate is going to hit to bottom as well,” notes Urban Land Institute researcher Charles DiRocco.

It has been reported that commercial real estate value declines will average more than 40 percent below previous highs of mid-2007. Locally, in Los Angeles County, from December 2007 – December 2009 the median price of for sale properties is down 59% and the median price of sold properties is down 99%. Meantime, volume is up by almost 1/3^rd, while concluded transactions are down 50%.

The ULI notes business environment for commercial real estate in 2010 will be as unsatisfactory as the recession of the early 1990s.

It has been predicted that many late-cycle buyers of 2005 through 2007 could find themselves struggling with foreclosures because of high sales prices, weakening occupancy and commercial mortgage-backed securities (CMBS) coming due.

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http://saratogavoice.com/wordpress/2009/10/20/california-real-estate-forecast-for-2010/

http://nyrej.com/37067

http://www.realtor.org/research/economists_outlook/commentaries/forecast1209

http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/12/07/daily30.html

https://www.terradatum.com/agentmetricsonline/report_chart_view.td

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ALTERNATIVE ENERGY POLL – SOLAR RULES

ALTERNATIVE ENERGY POLL – SOLAR RULES

Edited by Jodi Summers

An overwhelming majority -92% of Americans polled - Support Solar Energy Development, according to the 2009 Schott Solar Barometer. The Schott Solar Barometer is a national survey conducted by independent polling firm Kelton Research.

The overwhelming support for solar power is consistent across political party affiliation with 89 percent of Republicans, 94 percent of Democrats and 93 percent of Independents agreeing that it is important for the U.S. to develop and use solar power.

Furthermore, close to eight in 10 (77%) Americans feel that the development of solar power, and other renewable energy sources, should be a major priority of the federal government, including the financial support needed. This sentiment also remains the same since June 2008 (77%).

If only given the opportunity to support one source of alternative energy, 43 percent of Americans would opt for solar over other sources such as wind (17%), natural gas (12%) and nuclear (10%).

Almost half of all Americans (49%) say they’re currently pondering solar power options for their home or business – and another three percent already have solar power. Among those who would like to take advantage of solar power at home or at work, seven in 10 (70%) envision they would make the change within the next five years.

The general consensus is that many Americans feel they lack information – fewer than one in five (12%) - can claim that they’re extremely informed about the subject of solar power in general. What’s more, almost three in four (74%) Americans admit they wish they knew more about solar power options for their home or business.

http://www.cleanedge.com/news/story.php?nID=6455

http://www.resourceactionprograms.org/blog/index.php/tag/southern-california/

http://saferenvironment.wordpress.com/2009/02/02/solar-power-%E2%80%93-sustainable-green-energy-to-protect-our-economy-and-environment/

http://www.geni.org/globalenergy/library/articles-renewable-energy-transmission/solar.shtml

http://www.sunandclimate.com/images/solar-power-dallas.jpg

http://www.generatormart.com/200806092224444674.shtml

http://earth911.com/blog/2007/10/15/pros-and-cons-of-solar-power/

THE GOVERNMENT’S COMMERCIAL PROPERTY ENERGY GOAL: TO MAKE BUILDINGS NET ZERO BY 2025

THE GOVERNMENT’S COMMERCIAL PROPERTY ENERGY GOAL: TO MAKE BUILDINGS NET ZERO BY 2025

By Jodi Summers

The US Department of Energy wants to reduce the amount of energy used by commercial buildings from about 19% of total US energy consumption to 0% by 2025.

To achieve this goal (watch, Santa Monica), the DOE is offering solutions sector by sector, dialoguing with owners and developers about ways to capitalize on new technologies and reduce energy consumption,.

The DOE kicked off its Zero-Net Energy Commercial Building Initiative lastyear by establishing the National Laboratory Collaborative on Building Technologies and developing the Commercial Building Energy Alliances.

The objective of the Alliance is to share best practices and practical experiences in energy efficiency.

The Commercial Building Initiative focuses on “turning tomorrow’s buildings into domestic energy assets by constructing energy-efficient, high-performancebuildings that expeditiously and cost-effectively achieve sustainable carbon reductions and enable, through energy-efficient buildings, higher ROIs for building owners and occupants as well as to economy as a whole.” - Official word from says Drury B. Crawley, team leader in commercial buildings research and development for the DOE’s Building Technology Programs.

The rollout was a collaboration between U.S. Department of Energy and 19 commercial real estate companies, with the goal of linking building owners to the latest efficiency research and technologies from the agency’s laboratories. High profile retailers including Wal-Mart, Target and Macy’s have become involved in the Retailer Energy Alliance.

The DOE proudly notes that this “public-private partnership designed to minimize the energy consumption and environmental impact of commercial buildings.”

The focus of thе latest phase of the Alliance is to minimize energy use in leased space, offices, shopping malls and the hospitality industry.

Kudos to the DOE for this bold attempt to curtail usage in properties that involve so many random people passing through who give no thought to the building itself.

With commercial buildings comprising roughly 18 percent of the country’s energy consumption, the DOE feels that commercial holdings represent a large opportunity to cut usage. Best practices are shared and the alliance, and the goal is to serve an industry voice to advocate for more energy efficient equipment from the nation’s building materials suppliers.

Henry Chamberlain, president and COO of Building Owners and Managers Assoc. International, called the Alliance “a catalyst for long-term change” that can reduce the use of energy, cut greenhouse gases and drive innovation in the marketplace.

Each Commercial Building Energy Alliance brings together industry experts who can influence the energy footprints of the companies or institutions they represent. Members discuss energy challenges, share non-proprietary information, conduct energy saving assessments and cut the cost of high-efficiency building equipment through group purchases. They can also benefit from the technical assistance of the DOE.

The DOE has already created a steering committee for the next Commercial Building Energy Alliance, which will examine energy use in hospitals. The DOE describes the nation’s 8,000 hospitals as among its “most energy intensive commercial buildings, with more than 2.5 times the energy intensity and carbon dioxide emissions of office buildings. Unlike most other commercial buildings, hospitals are operational 24 hours a day, seven days a week and provide services even during power outages, natural disasters…”

All alliances are part of the DOE’s Net-Zero Energy Commercial Building Initiative targeting zero-energy commercial buildings by 2025.

Go to http://www1.eere.energy.gov/buildings/tax_commercial.htmlFor tax deductions that are available for improving the energy efficiency of commercial buildings, as well as links to qualified software available for calculating the savings.

The Net-Zero Energy Commercial Building Initiative was signed into law by former President Bush as part of the Energy Independence and Security Act of 2007, and is authorized for more than $1 billion in federal funds over the next decade. DOE committed $15 million last year to the program’s first phase, a research project involving two national laboratories and 21 companies that will produce new and retrofitted buildings with significant cuts in energy consumption.

Tools:

The DOE has taken a number of steps to encourage energy efficiency in the design of new buildings. EnergyPlus is an energy modeling tool, which is augmented by OpenStudio, a plug-in for the Google SketchUp 3-D drawing program that allows SketchUp to work seamlessly with the EnergyPlus program.

Both are available on the EnergyPlus page of DOE’s Building Technologies Program Web site.

http://apps1.eere.energy.gov/buildings/energyplus/

That site also features a selection of benchmark models for 16 types of building in 16 locations to help designers understand the energy use of similar new buildings- http://www1.eere.energy.gov/buildings/commercial_initiative/new_construction.html

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sources:

http://www.globest.com/news/1391_1391/insider/178282-1.html?type=pf

http://www.energy.gov

http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12446

http://www.greenbiz.com/news/2009/04/10/doe-forms-commercial-real-estate-alliance

http://www1.eere.energy.gov/buildings/retailer

http://www.ggashrae.org/meetings/2008-2009/speaker_presentations/Crawley.pdf

http://www.costar.com/News/Article.aspx?id=C94B2CDD13C1546D6DBB4F76C65D20B1

http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12450

http://www1.eere.energy.gov/buildings/commercial_initiative/new_construction.html

http://itecsinsider.com/?tag=green-buildings

http://jcwinnie.biz/wordpress/imageSnag/nzero01.jpg

http://naturalpatriot.org/wp-content/uploads/2007/09/livingroof.jpg

http://www.building.lv/latinzenieris/images/99265_01.jpg