Colorado-Real-Estate-Journal_365457

INSIDE T hroughout Colorado, new energy legislation in the form of building perfor- mance standards is compel- ling property managers to think about the long-term outlook of their portfolio. Since the city and county of Den- ver released details of its landmark Energize Denver legislation, Colo- rado has followed suit with similar standards. Although several nuanc- es exist between the two programs, one standard remains a constant for all large facilities: Energy use will have to reach and maintain ambitious goals. Office buildings serve as an important example of the standards that owners will have to meet. In the screenshot example from Energize Denver’s new Performance Requirements Look Up Tool (Figure 1), a commercial office building with over 350,000 square feet had a baseline energy use intensity score of 87,100 British thermal units per sf. If the build- ing stayed at that same EUI score from 2019, the owners would face several millions of dollars in finan- cial penalties from the city over time. However, that same building has already reduced its EUI signifi- cantly and already meets the 2025 target. This puts it on a trajectory; should it reduce its EUI by only 2%-3% over the next seven years, that will far exceed the Energize Denver 2030 target and not result in any penalties. Now that the EUI targets are published, building owners have a framework of the goals their facilities will need to meet to avoid financial penalties. Furthermore, corporations across the country are increasingly adopting sustainability goals, and many are targeting 2030 or 2050 to reach net-zero emissions. Whether the drive to become more sustainable comes from legisla- tive bodies, corporate policy or the significant cost savings achieved through facility optimization, how to get there is the question on most owners’ minds. Building technology has become increasingly complex. Regardless of how well buildings are designed and constructed, they rarely func- tion in a completely predictable way. Modern facilities require more expertise than their predecessors in order to function optimally. Operat- ing facilities involves a human com- ponent, so investing in staff training and development is important. Now more than ever, property managers and owners are utilizing consultants to develop and imple- ment robust facility asset manage- ment systems to address energy needs in their portfolios. A strong asset management system helps Consider installing solar to move utility expenses to the asset column Budget season Achieve goals, decrease mind clutter and identify priorities Staying organized PAGE 9 Updates: enticing tenants back to the office; decarbonizing benchmarks BOMA Please see Hanson, Page 18 October 2023 PAGES 20-23 PAGE 6 Hillary Hanson Account executive/ Energize Denver liaison, McKinstry Energy legislation: Protect your facility’s future Energize Denver’s Performance Requirements Look Up Tool (https://calculator.energizedenver.org/) includes a brief recommended tutorial to help users navigate and accomplish energy modeling.