Title: A Business Case for Multi-Tenanted Office Buildings Creating a Win for Owners, Managers and Tenants
1A Business Case for Multi-Tenanted Office
BuildingsCreating a Win forOwners, Managers and
Tenants
Richard W. Greninger, CPM Vice Chair, BOMA
International Managing Partner, Operations Carr
Properties Washington, DC
BOMA Achieving High Performance Through
Innovation
21575 Eye Street, NWWashington, DC 20005
- 210,655 sq. ft.
- 2 level garage with 203 spaces
- Built in 1979
- Owners
- 1575 Eye St LP
- American Society of Association Executives
- AETNA
- Carr Properties, Managing Partner
BOMA Achieving High Performance Through
Innovation
3Occupancy Profile / Major Tenancy
- American Society of Association Executives
(ASAE) - 40,516 sf (20)
- Veterans Affairs (VA)
- 63,798 sf (30)
- Federal Aviation Administration (FAA)
- 54,942 sf (26)
-
-
- 76 of the building occupied by three tenants
- 56 expiring leases in 2010 and 2011 (VA and FAA)
BOMA Achieving High Performance Through
Innovation
4Energy Efficiency Retrofit Profile
- Replaced two chillers totaling 550 tons with two
high efficiency chillers replaced two cooling
towers with new high efficiency towers, reduced
from four fans and four motors to two fans
controlled by a VFD - Replaced domestic water boost pumps with new high
efficiency booster pump system with VFDs - Installed soft start on central plant supply and
return fans to control peak demand - Replaced 10-ton elevator lobby unit with high
efficiency unit
BOMA Achieving High Performance Through
Innovation
5Energy Efficiency Retrofit Profile
- Complete building lighting retrofit from F-40s
to T-8 lights, also installed sensors in all
public restrooms and replaced light switches with
motion control during new tenant build outs - Demand Management
- Installed energy modeling/management system and
upgraded building-wide EMS system to state of
the art, and incorporated Constellation Demand
Response Program. - Supply Management
- Renegotiated electric supply contract with
Constellation Energy, reducing cost 25.
BOMA Achieving High Performance Through
Innovation
6BOMA Achieving High Performance Through
Innovation
7High Performance ROI
- Energy Efficiency Retrofit Cost 963,000
- Annual Reduction in Electric
- Consumption 1,056,246 KWH (21.5)
- Cost Savings (2012) 220,000
- Annual RM Savings 20,000
- Annual Rental Revenue (VA FAA) 5,471,881
- Total Savings 5,711,881
- Payback Ratio (Total) 963,000 / 5,711,881
2.1 mth - Payback Ratio (Energy Only) 963,000 / 240,000
4 years
BOMA Achieving High Performance Through
Innovation
8Benefits
- Owners
- Retained 56 of tenancy preserving 5.5 million
in gross income - Long-term viability of investment
- GSA and Class A tenancy evaporation
- Instantaneous payback of investment and value
enhancement - Projected 15,000,000 value gain (Revenue and
Cap-rate improvement) - Achievement of sustainability goals
BOMA Achieving High Performance Through
Innovation
9Benefits
- Managers
- Operational performance efficiency
- Achievement of sustainability goals. Energy Star
rating of 85 - Income/fee enhancement
- Job preservation (20 positions)
- Tenants
- Consistency of workplace environment
- Achievement of sustainability goals
- Greater employee productivity
- Reduction in gross rent payments
-
BOMA Achieving High Performance Through
Innovation