It’s possible for older buildings to become as energy efficient as new buildings that were built with that goal in mind. Retrofitting older commercial properties takes effort, but it can pay off in improved longevity and sustainability of the building, improved wellness for tenants, and energy savings for the property owner.
Urban Innovations recently earned ENERGY STAR® certification for HUB640, a historic downtown Milwaukee property, and shared some best practices for owner-operators looking to enhance sustainability in their commercial buildings.
ENERGY STAR certification is awarded by the U.S. Environmental Protection Agency (EPA) for exceptional energy performance. ENERGY STAR-certified buildings rank among the top 25% in the nation for energy efficiency, based on key performance factors like occupancy, operating hours, and overall energy use. Unlike other green certifications, ENERGY STAR is the only energy efficiency certification in the United States that is based on actual, verified energy performance.
Joi Harrell, general manager, Urban Innovations.
Here are some key areas for property managers to prioritize investments.
Energy Efficiency Upgrades
- Transition from older fluorescent fixtures to LED fixtures and motion sensors to reduce energy costs and extend bulb lifespan.
- Optimize HVAC systems to improve air quality, lower energy consumption, and reduce maintenance costs.
- Implement smart building automation systems that use sensors (and AI on some models) to adjust lighting, heating, and cooling based on occupancy – so energy is not used when it’s not needed.
Water Conservation Strategies
- Install low-flow fixtures and touchless faucets and dispensers to minimize water/energy usage.
- Install common area water bottle fillers to encourage refillable bottle use and reduce plastic waste.
Sustainable Materials
- Use eco-friendly and recycled construction materials during renovations.
- Update all exterior enclosures to keep cold or hot air out as people enter and exit the building.
- Retrofit systems as they become outdated.
- Install reflective roofing materials to help cool buildings and reduce energy usage during hotter months.
Additional upgrades can be focused on the health and wellness of building occupants, by improving environmental and maintenance practices and offering special amenities.
Air Quality Enhancements
Urban Innovations has implemented needlepoint bipolar ionization (NPBI), a state-of-the-art air filtration system to improve indoor air quality by releasing charged ions that attach to airborne particles like viruses, bacteria. and allergens making them easier to filter out. NPBI also neutralizes mold, VOCs, and pathogens, leading to better occupant health and productivity. The system also reduces HVAC demand by minimizing the need for excessive outdoor air intake, easing system strain and extends its useful life.
Cleaning and Waste Management
Property managers can provide tenant recycling programs, composting, and battery recycling, as well as year-round e-waste disposal services to tenants. Maintenance staff can be required to use greener or low-fume cleaning products.
Sustainable Transportation & Mobility Solutions
Owners can encourage and support environmentally conscious choices by building tenants. These efforts can include installing EV charging stations, offering bike storage to promote alternative transit options, and providing commuter incentives to promote ridesharing.
Nature-based Solutions
At its Chicago building 325 West Huron, Urban Innovations started a bee program and host regular educational workshops to support urban biodiversity and engage the community with nature. The building proudly hosts a hive with thousands of hard-working honeybees that pollinate the neighborhood.
Other natural amenities can include rooftop gardens that help reduce the urban heat island affect and support stormwater management, and install interior “living walls” or other plant installations that benefit air quality.
Why It Matters to Owner-Operators
While sustainable renovations require upfront investment, over time they can lower operational expenses and improve net operating income. Additionally, they can help tenant companies meet their ESG or net zero commitments. In some locations, they drive compliance with local and regional benchmarking standards. For example, the city of Chicago enforces strict energy and carbon reduction mandates, including the Chicago Energy Benchmarking Ordinance which requires commercial buildings over 50,000 sq. ft. to track whole-building energy use, report annually, and verify data accuracy through a third party every three years.
How to Fund Sustainability Improvements
Retrofitting older buildings to be environmentally sound and energy efficient can be a costly undertaking. Starting renovations requires capital planning and budgeting. Owner-operators should explore all applicable utility rebates and tax incentives, as well as green financing options. Another funding avenue is tenant cost-sharing – either through operating expenses or requiring green initiative participation through tenant leases. Once initial efficiency projects are producing cost savings, plan to reinvest in additional measures.
Overall, committing to sustainability and achieving standards such as ENERGY STAR certification increases asset value while its improves the experience of building tenants – a win-win. Owners reap the benefits of higher occupancy rates, stronger resale values, and greater appeal to investors.
Joi Harrell is general manager of Chicago’s Urban Innovations.
