Southern California Industrial Real Estate Blog

GREEN LEGISLATION DOMINATES IN SACRAMENTO

December 25, 2009 on 12:01 am | In FASCINATING INFORMATION, GREEN, Government, PROPERTY MAINTENANCE, Uncategorized, all | 10 Comments

A HOST OF GREEN BILLS PASS IN CALIFORNIA LEGISLATURE

by Jodi Summers

Once his term as state leader is finished, do not be surprised if Governor Arnold Schwarzenegger crosses party lines and unites with former Vice President Al Gore in working for a greener world.

Green legislation and regulations have been a favorite in Sacramento since the adoption of Assembly Bill 32 in 2006, and this year is no different. The basics of the green bills signed into law this year by Schwarzenegger include:

Energy

* Assembly Bill 758 (Skinner, D-Berkeley): Requires the California Energy Commission to establish a program encouraging energy savings in existing residential and nonresidential buildings.

* Assembly Bill 920 (Huffman, D-San Rafael): Allows customers with solar and other alternative energy generators participating in a net-metering rate schedule the option of rolling over credits for excess energy generation into the following year or receiving payments from the utility at a wholesale rate.

* Senate Bill 32 (Negrete-McLeod, D-Chino): Creates a fixed-price payment for energy generated from renewable projects based on the value of renewable generation. The legislation makes it easier for the owners of storage units, vacant land, warehouses and other properties that require minimal energy consumption to transform their properties into independent solar power plants that sell back to utilities.

Greenhouse Gas Reductions/Climate Change

* Assembly Bill 1085 (Mendoza, D-Artesia): Shines “sunlight” on important regulatory procedures at the California Air Resources Board (aka CARB) by requiring it make available to the public each technical, theoretical and empirical study, report or similar document, if any, on which the agency relies, related to, but not limited to, air emissions, public health impacts and economic impacts before the comment period for any regulation proposed for adoption by the state board.

* Assembly Concurrent Resolution 77 (Swanson, D-Oakland): Urges CARB to meet the statutory requirements of the Global Warming Solutions Act of 2006, or AB32, by ensuring that its analysis of specified emission reduction measures include prescribed components.

* Assembly Bill 210 (Hayashi, D-Hayward): Encourages cities, counties and other local jurisdictions to adopt energy-efficient building standards that surpass those already included in the state’s landmark Green Building Standards Code. That code requires structures to use at least 15 percent less energy than current requirements, and sets goals for air quality, water conservation and other environmental concerns.

* Assembly Bill 531 (Saldana, D-San Diego): Delays the implementation of the state’s mandatory Energy Star benchmarking law - Assembly Bill 1103 - and requires the state Energy Commission to write implementing regulations.

Water

* Senate Bill 407 (Padilla, D-Pacoima): Requires all residential and commercial buildings to install water-conserving fixtures by 2019. Also authorizes public entities that supply water to require such retrofitting whenever real estate is transferred.

* Assembly Bill 474 (Blumenfield, D-Van Nuys): Authorizes the legislative body of any public agency to designate an area within which authorized city officials and free and willing property owners may enter into contractual assessments to finance the installation of water-efficiency improvements that are permanently fixed to real property.

* Addendum: The state remains without a water deal despite Schwarzenegger’s scheduling of a special session on the topic.

Under Governor Schwarzenegger, California has become an international leader in clean energy standards, enriching the state with clean energy investment, green jobs and a better quality of life. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue, with assistance both on the state and national level.

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http://www.carealestatejournal.com/newswire/index.cfm?sid=&tkn=&eid=905490&evid

http://www.socalgreenrealestateblog.com/?p=825

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Sustainable Industries’ Top 10 Green Building Products of 2009

December 18, 2009 on 12:11 am | In Bravo, FASCINATING INFORMATION, GREEN, Investment Opportunities, Problem Solving, Recycling, Trends, Uncategorized, all | 4 Comments

Sustainable Industries’ Top 10 Green Building Products of 2009

Edited by Jodi Summers

Not to be outdone by other trends, Sustainable Industries magazine
has made their choices for the 2009 Top 10 Green Building Products.
These industry-leading green building products winners were
selected by a panel of expert judges and the Sustainable
Industries editorial team based on their environmental
performance, scalability/market impact, innovation,design
aesthetic, value and compatibility with the U.S. Green Building 
Council’s Leadership in Energy and Environmental Design (LEED)
rating system. 

The 2009 Top 10 Green Building Product winners are:

Acadia Combined Heating and Cooling System

Made by Hallowell International

(www.gotohallowell.com)

The Acadia is not just another heating and cooling system. It maintains 200 percent efficiency even when outdoor temperatures drop well below zero..should global climate change ever affect us that severely. Acadia users can save up to 70 percent of their home heating energy costs.

ec-H20

Made by Tennant Co.

(www.tennantco.com)

Requiring no chemicals, ec-H2O uses tap water to clean most any surface of most any substance. Each machine reduces water usage by 70 to 80 percent, and the potential of 245 million gallons of water each year if it were installed in all new floor-cleaning machines.

InSpire Wall

Made by ATAS International

(www.atas.com)

This simple technology uses the power of the sun to heat outdoor air before sending it indoors, thereby slashing energy use while boosting indoor air quality. Depending on what kind of heating fuel is being replaced, this product can reduce heating costs by up to $5 for each square foot of InSpire Wall installed.

kama EEBS Structural Systems

Made by kama Energy Efficient Building Systems Inc.

(www.kama-eebs.com)

kama EEBS Structural Systems integrate light gauge metal stud framing system with expanded polystyrene insulation in a proprietary design that eliminates thermal bridging and helps to create a tight, energy-efficient building envelope.

PlybooPure Bamboo Plywood

Made by Smith & Fong Co.

(www.plyboo.com)

Because it’s technically a grass, bamboo had not previously been eligible for FSC certification. But in January 2008, after two years of lobbying, Smith & Fong achieved this first that propelled it to recognition on this year’s Top 10 list.

RainTube

Made by GLI Systems Inc.

(www.raintube.com)

This product received more Top 10 nominations than any other product this year. RainTube is a rain gutter filter made of 100 percent post-consumer high-density polyethylene – old milk jugs, in other words. This product is also Cradle to Cradle-certified, meaning that GLI Systems Inc had to develop a Post-Use Recovery Plan that goes out with every product.

Separett Villa

Made by Separett

(www.ecovita.net/villa)

This urine-diverting composting toilet – which is 100 percent PVC fee –uses no water and keeps solids separate from liquids, reducing odor and making it possible to reuse waste and urine for composting and fertilizing. The Separett Villa can be deployed where no plumbing exists, allowing for a greater reach of the technology.

Serious Windows

Made by Serious Materials

(www.seriouswindows.com)

Serious Windows are so efficient they have the potential to allow for the elimination of a building’s heating system, allowing waste heat from building appliances to serve as the main heat source in some applications. The windows have a full-frame R value of at least five and up to 11, which can cut a building’s energy bills by up to 50 percent per month.

Solatube Daylighting Systems

Made by Solatube International

(www.solatube.com)

This patented technology catches direct sunlight and redirects it down an adjustable-length tube, bringing daylight to parts of buildings that would not otherwise have access to natural light. The Vista, Calif.-based company recently launched a product specifically designed for commercial applications, making it ideal for large-roofed warehouses and manufacturing facilities, as well as retail stores and schools – allplaces that have been shown to benefit from increased daylight, as daylight is linked to higher worker productivity, decreased absenteeism and better retail sales.

Your Old Light Fixture

Made by Eleek

(www.eleekinc.com)

Eleek is the only business to make the Top 10 Green Building Products list all four years. Though not a product, Eleek’s lighting restoration service speaks to the important concept of the re-use of existing goods. When Eleek restores a light fixture, every piece of a fixture is taken apart, repaired and restored to its original splendor. Its wiring is updated to comply with modern codes and standards and a new lamp base is installed so it works with energy-efficient lamps such as CFLs and LEDs.

Original article @ http://www.sustainableindustries.com/greenbuilding/49012336.html

URGENT! CONTACT YOUR CONGRESSMAN TO AVOID COMMERCIAL REAL ESTATE TAX HIKES

December 11, 2009 on 12:07 am | In FASCINATING INFORMATION, Government, Money, New Developments, Uncategorized, all | 4 Comments

Action to Oppose More Than Doubling of Taxes on Real Estate Carried Interests

Edited by Jodi Summers

In early December, Congressman Charles Rangel Ways, chairman of the Ways and Means Committee of the House of Representatives, introduced the “Tax Extenders Act of 2009″ (H.R. 4213). Wrapped in this legislation package is a proposal that would more than double the taxes on carried interest received by general partners in real estate partnerships. Under this legislation, carried interest would no longer be taxed as capital gains at 15 percent, but as ordinary income at rates as high as almost 35 percent…making everyone’s investment real estate holdings a lot less sexy.

Kick us while we’re down. Those investing in commercial real estate are already feeling economic distress because of the decline of property values and the lack of loans available. The proposed legislation would more than double the taxes imposed on many real estate entrepreneurs.

If H.R. 4123 enacted into law, this proposal could be the largest modification to the taxation of real estate since the Tax Reform Act of 1986.

This bill was past stealthfully, proposed on December 7^th, it bypassed the customary legislative process, bypassing the House Ways and Means Committee, and going directly to the House floor for a vote on December 9, reducing meaningful opportunities to amend the bill.

Safeguard your real estate assets; communicate with your Congressional Representatives and Senators! Let them know that this tax increase on carried interest will further damage the commercial real estate industry and undermine efforts in their own communities to spur job growth and economic recovery.

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO has letters ready to go to your congressmen.

Save your assets and contact them.

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http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO

http://www.ysop.org/images/Capitol.jpg

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – DECEMBER 2009

December 4, 2009 on 12:06 am | In Uncategorized | 6 Comments

LOS ANGELES INDUSTRIAL PROPERTY SNAPSHOT – DECEMBER 2009

By Jodi Summers

Oh how we yearn for the next round of glory days for Los Angeles’ industrial market.

Currently, the Los Angeles County industrial vacancy rate is above 3.0 percent for the first time since the first quarter of 2004, thanks to the slowing economy.

The current economic climate has weakened demand for industrial space in all parts of Los Angeles County. The Downtown area saw its industrial vacancy rate increase by +0.7% year-to-year, Mid-Cities by +1.6%, San Fernando Valley by +0.9%, South Bay by +0.4% and the San Gabriel Valley had the largest rise in industrial vacancy, increasing by +1.8 percentage points over the third quarter of last year.

“Almost all major Southern California industries are struggling during 2009,” notes Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Worse, in some cases entire business models are changing.” One example is apparel manufacturing, where the number of potential customers for local garment producers is shrinking due to store closings, while many firms rely on CIT for financing. Another is the motion picture/TV production industry. On the TV side of the business, the audience for the broadcast networks is shrinking and cost containment is a major

concern. As to feature film production, while the box office is running at record levels, California’s incentives for the film industry were late in coming, and it’s not yet clear whether they will be sufficient to stem the continued erosion of in-state feature film production. “This is not good news for below-the-line workers or the multitude of small suppliers to the industry,” fretted Kyser.

Expect the trend to continue. International trade activity at the region’s ports and airports continues to decline. Container activity at the Los Angeles/Long Beach port complex peaked back in 2006 when 15.76 million TEUs were handled. In 2009, the forecast is for 12.2 million TEUs to be moved, and the impact of this decline has rippled out to longshoremen, truck drivers and the industrial real estate markets throughout the entire metropolitanarea.

The bright side is that neighboring Mexico’s industrial sector is seeing growth. Thanks in large part to our the cash-for-clunkers program, Mexico’s economy in the third quarter expanded for the first time since the third quarter 2008 and officially marked the end of the recession. Over 90% of Mexican exports go to the U.S. according to the National Statistics Institute, comprising about 25% of Mexican gross domestic product. The Mexican government expects nearly +3% GDP growth in 2010. Hopefully U.S. growth will follow soon.

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http://www.laedc.org/businessscan/charts