Santa Monica Property Blog

STUDIES SHOW GREENING BUILDINGS IS GOOD FOR THE BOTTOM LINE

by Jodi Summers

It’s been studied and documented, greening your office building improves your bottom line. Let us share a round of facts with you.

“Increasing energy efficiency in our buildings can increase occupancy rates, leasing prices and sale prices — all in a highly-competitive environment,” confirms a new report from Ceres and Mercer titled “Energy Efficiency and Real Estate: Opportunities for Investors”

The report also concluded that real estate managers who don’t put energy efficiency measures into their properties risk lower profits in the future.

And having said that, if you’re adhering to our statewide CALGREEN Code, you’re already ahead of the game. The California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

Buildings currently account for 39 percent of the energy used in the United States, 71 percent of electricity use, and 39 percent of C02 emissions. A recent report by McKinsey & Company notes that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste.

Republicans and Democrats actually agree that green real estate is important. In June 2009, legislation was approved by the House of Representatives to control climate change by limiting heat- trapping pollution and creating a trading system for pollution permits. The bill calls for cutting greenhouse-gas emissions from 2005 levels by 17 percent by 2020, and 83 percent by mid- century.

So everyone thinks this is a great idea, but how does this affect your bottom line? A 2009 Maastricht University study that showed rental premiums of 3.5 percent on “green” U.S. office properties, while Energy Star buildings had 6 percent higher occupancy rates and sold for a premium of 16-17 percent per square foot.

Here are some of the noteworthy conclusions from these reports about investing in energy efficient real estate:

- Energy efficient buildings offer a measurable financial benefit over non-green buildings, in the form of higher rent, occupancy, valuation and lower operating costs.

- No- or low-cost energy efficiency improvements can have quick and dramatic impacts on property operating costs.

- Poorly performing buildings represent an opportunity for a significant investment gain when it comes to energy efficiency.

- Additional improvements require planning, partnerships and initial investments, but can also decrease operating expenses and raise resale and leasing value.

- Investment managers and products that consider energy efficiency and green building practices are increasingly available to investors.

- Barriers to implementing energy efficiency improvements are eroding as demand grows, research on the benefits continues, and supporting products and services improve feasibility and cost-effectiveness.

Essentially, greening your building is the best thing for your bottom line. In confirmation, we’ll site a report from KPMG, which finds that energy consumption in buildings can be cut by 30 to 50 percent and still produce a positive return on investments.

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http://www.environmentalleader.com/2009/12/22/energy-efficiency-and-real-estate-profits-go-hand-in-hand/

http://www.socalofficerealestateblog.com/?p=953

http://www.socalofficerealestateblog.com/?p=965

http://www.tiaa-cref.org/public/about/index.html

http://www.socalindustrialrealestateblog.com/?p=325

http://abeldesigngroup.files.wordpress.com/2009/07/green-building.jpg

http://www.buildandrebuild.com/wp-content/uploads/2009/06/stat-green-building.jpg

http://allgreen.com/site/images/stories/office_windows_trees_reflected.jpg

http://www.metaefficient.com/images/fukuoka_green_roof.jpg

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/

RE: FAA CHANGE OF FLIGHT PATH AT SANTA MONICA AIRPORT

From: Zina Josephs - Friends of Sunset Park

Subject: WRITING CONGRESS RE THE FAA “TEST”

Those affected by the FAA “test” flight path may wish to use the sample letter below to write to Congressional representatives. You can edit, cut and paste, etc., to include pollution, quality of life, or the concern of your choice.

Please forward to as many people as possible, and remember to advise that the letters be sent by regular mail or by FAX for maximum impact.

****************************************************************************************************

Senator Barbara Boxer

312 N. Spring St. #1748

Los Angeles, CA 90012

FAX: 202-224-0357

Email: http://boxer.senate.gov/en/contact/policycomments.cfm

***************************

Senator Dianne Feinstein

1111 Santa Monica Blvd. #915

Los Angeles, CA 90025

FAX: 310-914-7318

Email: http://feinstein.senate.gov/public/index.cfm?FuseAction=ContactUs.Emailme

***************************

Rep. Henry Waxman

8436 W. 3rd St. #600

Los Angeles, CA 90048

FAX: 323-655-0502

Email: http://waxman.house.gov/Contact/

***************************

(Write a separate letter to each Congressional representative.)

June 16, 2010

RE: FAA change of flight path at Santa Monica Airport

Dear (Insert name here: Senator Boxer, Senator Feinstein, or Congressman Waxman),

The Federal Aviation Administration (FAA) has chosen to test a new flight path for certain aircraft leaving Santa Monica Airport (SMO).

The previous flight path took aircraft over a sea level golf course and a primarily commercial street leading to the ocean before allowing pilots to turn north/right.

The “new” departure flight path, the 250 vector, takes aircraft directly over two densely populated residential neighborhoods (the Sunset Park mesa and the hilly section of Ocean Park), a busy amusement park (Santa Monica Pier), places of worship, and schools.

As a resident of the impacted neighborhood, I am very concerned about the effect on my quality of life and my peaceful enjoyment of my home, if this tested flight path were to become permanent. The change in the tested flight path has introduced as many as 20 planes overhead per hour, in addition to the already large numbers of planes criss-crossing Santa Monica due to its proximity to LAX. These frequent

low-flying flights are incredibly noisy and arguably a violation of the 1984 agreement between the FAA and the City of Santa Monica.

In addition, I have significant concerns about the safety of our community. The frequency of planes crashing just after takeoff from General Aviation airports like SMO is well documented. The danger level is far greater at SMO because homes are within less than 300 feet of either end of the runway.

The new “test” departure route raises the danger level still higher, as it takes planes over John Adams Middle School, Will Rogers Elementary School, Olympic High School, John Muir Elementary School, Santa Monica Alternative School House, and Santa Monica High School.

We need your help in this fight with the FAA. Please contact the FAA Administrator J. Randolph Babbitt and request that he respect your desire to protect the quality of life and safety of residents in the affected areas by continuing to use the flight path mutually agreed to in the 1984 Agreement with the City of Santa Monica.

Sincerely,

(Insert your name here)

(Insert your address here)

Santa Monica, CA (zip code)

**

http://www.NYTimes.com/2007/11/24/us/24airport.html?ex=1

http://www.santamonicapropertyblog.com/?p=188

http://www.friendsofsunsetpark.org/

THE GOVERNMENT HAS $72 BILLION FOR GREEN REAL ESTATE

By Jodi Summers

Experts have calculated that the Obama administration has put together more than 30 programs worth $72 billion that can be used to increase energy efficiency in commercial buildings and multifamily housing.

“The Obama Administration has tremendous, untapped opportunities to use legal tools already at its disposal to enhance the energy efficiency and sustainability of the nation’s multifamily and commercial buildings — all without seeking new funds or authority from Congress,” observes a report prepared by Van Ness Feldman. “All told, the programs identified in this report have the potential to directly provide or facilitate over $72 billion in funding or loan guarantees, and can leverage hundreds of billions of dollars in private investment through instruments such as mortgage insurance and regulation of the real estate lending market.”

Titled “Using Executive Authority to Achieve Greener Buildings: A Guide for Policymakers to Enhance Sustainability and Efficiency in Multifamily Housing and Commercial Buildings,” the legal analysis, suggests several ways the Obama administration can use existing programs to enhance building efficiency:

* Reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac Greening federal banking regulations

* Promoting flexible FHA insurance products

* Integrating energy efficiency and sustainability criteria into competitive grants and funding formulas

* Strengthening minimum property standards for federal housing and economic development programs to reflect energy efficiency and sustainability standards

* Improving performance standards applicable to federal buildings and leases

* Refining guidance applicable to the energy efficient commercial buildings tax deduction and the national historic preservation tax credit

* Using SBA funding mechanisms to support small business energy efficiency investments

* Streamlining Title 17 loan guarantees to make them suitable for buildings

“As an early adopter of green buildings and the LEED green building certification system, the federal government has been a leader in bringing green buildings to cities and towns across America,” said Roger Platt, the USGBC’s senior vice president of Global Policy & Law declared. “This new report unveils an even larger opportunity for the Obama Administration to increase our nation’s energy efficiency, while creating thousands of jobs and saving taxpayers money.”

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http://www.usgbc.org/government

http://www.greenbiz.com/news/2010/04/30/obama-already-has-72b-tap-green-buildings-study-says

http://www.boulderindependentbusiness.org/wordpress/wp-content/uploads/2009/02/namaste_obama_0093.jpg

http://www.rechargenews.com/multimedia/archive/00032/obama_solar_3_32125a.jpg

HUD AND DOT WORKING TOGETHER FOR MORE LIVABLE CITIES

By Jodi Summers

Government statistics show that the average working American family spends nearly 60 percent of its budget on housing and transportation costs - making these two areas the largest expenses for the average household. Now the government wants to help.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Transportation (DOT) are working together in hopes of helping American families gain better access to affordable housing, more transportation options, and lower transportation costs by creating affordable, sustainable communities.

Like putting in our light rail system, this is a long process. Over the next four years, every major metropolitan area in the country will do an analysis of integrated housing, transportation, and land use planning and investment.

Recently, HUD Secretary Shaun Donovan and DOT Secretary Ray LaHood presented the official vision for sustainable communities at a U.S. House of Representatives Appropriations Subcommittee on Transportation and Housing hearing titled, “Livable Communities, Transit Oriented Development, and incorporating Green Building Practices into Federal Housing and Transportation.”

“One of my highest priorities is to help promote more livable communities through sustainable surface transportation programs,” offered Secretary LaHood. “This partnership will help expand every American family’s choices for affordable housing and transportation,” said Secretary Donovan. “HUD’s central mission - ensuring that every American has access to decent, affordable housing - can be achieved only in context of the housing, transportation, and energy costs and choices that American families experience each day.”

DOT and HUD have created a high-level interagency task force to better coordinate federal transportation and housing investments and identify strategies to give American families:

• More choices for affordable housing near employment opportunities;

• More transportation options, to lower transportation costs, shorten travel times, and improve the environment; and

• Safe, livable, healthy communities.

The HUD/DOT task force has the goal of enhancing integrated regional housing, transportation, and land use planning and investment. Planning grants will be made available to metropolitan areas, and create mechanisms to ensure those plans are carried through to localities. DOT will encourage Metropolitan Planning Organizations (MPOs) to conduct this integrated planning as a part of their next long-range transportation plan update and will provide technical assistance on scenario planning, a tool for assessing future growth alternatives that better coordinate land use, and transportation planning.

http://www.hud.gov/offices/cir/test090318.cfm

http://www.inman.com/news/2009/03/19/partnership-targets-affordability-transportation

http://transit-safety.volpe.dot.gov/safety/sso/MeetingSummary/images/1-dotlogo.gif

http://t4america.org/logos/t4logo_square.jpg

CALGREEN – > CALIFORNIA NOW HAS THE COUNTRY’S GREENEST BUILDING STANDARD

By Jodi Summers

Bravo to us! California has adopted the greenest building standards in the United States…and the world.

The new code, called Calgreen, goes into effect next January 2011. It requires all builders to:

v Install plumbing that cuts indoor water use.

Mary Nichols, chairwoman of the California Air Resources Board, said the new building code would require developers to slash water use in their buildings by 20%, using more efficient toilets, shower heads and faucets.

v Divert 50 percent of construction waste from landfills to recycling.

v Use low-pollutant paints, carpets and floorings

v Buildings will be given certificates of occupancy occupied only after strict energy standards were verified.

In addition, for non residential buildings:

v Install separate water meters for different uses.

v Mandates the inspection of energy systems by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently.

v It allows local jurisdictions, such as Los Angeles and San Francisco, to retain their stricter existing green building standards, or adopt more stringent versions of the state code if they choose.

“California should be proud… These are simple, cost-effective green practices. …” notes Tom Sheehy, acting secretary of the state Consumer Services Agency and chair of the California Building Standards Commission, which approved the standards. “This is (something) no other state in the country has done - integrating green construction practices into the very fabric of the construction code.”

While California’s largest metropolitan areas have adopted their own green building standards, these new regulations will be particularly useful for smaller jurisdictions that have been unable to develop their own green construction guidelines.

This is a positive alternative to LEED construction standards. Sites Sandra Boyle, an executive vice president of Glenborough, a developer, “The cost for owners to go through this rating system is astronomical — in a very challenging commercial real estate market.”

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Buildings currently account for about one-quarter of the state’s total greenhouse gas emissions. These new standards are applauded as an important step in helping California meet its goal in reducing the state’s greenhouse gas emissions by 30 percent by 2020.

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http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL#ixzz0dJ9grkaW

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL

http://www.latimes.com/business/la-fi-green-building11-2010jan11,0,1841989.story

http://www.thedailygreen.com/cm/thedailygreen/images/WA/Kohler-DualFlush-BR08-lg.jpg

Energy to Sell - States with Renewable Portfolio Standards

States with Renewable Portfolio Standards

Edited by Jodi Summers

Scroll down for a nifty map and chart from the U.S. Department of Energy showing states with renewable portfolio standards - a state policy that requires electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date.

California is stellar with the objective of 33% renewable energy by 2030, but not nearly as aggressive as Maine, which is shooting for 40% renewable by 2017.

Currently there are 24 states plus the District of Columbia that have RPS policies in place. Together these states account for more than half of the electricity sales in the United States. Five other states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have nonbinding goals for adoption of renewable energy instead of an RPS.

The chart below gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm?prin

SANTA MONICA RESIDENTIAL PROPERTY SNAPSHOT – MARCH 2010

By Jodi Summers

Optimistic news on the housing market from two very respected sources – the Wall Street Journal and Forbes. Yeah us! According to Forbes, three of the top ten markets where home prices are rising are in California.

Enjoy this fact for residential real estate in Santa Monica – comparing February 2008 to February 2010, the number of under contract properties is up 120%, according to Clarus Market Metrics.

Asking prices on single-family homes have increased as much as 36% from the previous year in some local cities, Forbes notes, an indicator that is “a bounce off the bottom of the bubble bursting.”

In Santa Monica, contrasting Feb. 2008, to Feb. 2010, the median price of for sale properties is down 15% and the median price of sold properties is down 10%.

Three of the top ten markets where home prices are rising are in California. They say it’s because markets in that state were inflated earlier, many were well positioned to make a comeback even before the larger economy recovered. According to the 2010 National Apartment Index Report by Marcus & Millichap, our sister city, San Diego, came in @ No. 2 (behind Washington D.C.) as a residential market to watch due to expectations for resumed employment and household growth. (Los Angeles is @ No. 13, thanks to perceived strengths in our marketplace. )

Forbes notes rising prices in the SoCal cities of Poway and Arcadia, as well as Sunnyvale up in Silicon Valley. You will be delighted to note that in Arcadia, prices increased an average of 28%. Inventory is up, and prices “overall” are on the rise, following “a natural seasonal trend for healthy markets, but it hadn’t been reflected in California since the bust.”

“That natural seasonal stuff didn’t happen in 2008 in the California markets,” observes Michael Simonsen, CEO of Altos Research. “2007 to 2008 was the big bust, so the expected seasonal uptick didn’t happen. It did in 2009.”

In Feb. 2008, we had 10.6 months of property inventory on the market. In Feb. 2010, the average months supply of inventory is down -53.1% to about 5 months. Sages say 3.7 is parity in the marketplace..

.

Another infobyte to bolster your confidence in the local residential real estate market - the Wall Street Journal proclaims that shadow inventory is unlikely to hurt the marketplace. Nearly 5 million houses and condos, of which the mortgages are delinquent, will go through foreclosure over the next few years, concludes research by John Burns Real Estate Consulting Inc. The study also presumes that there is strong investor demand for these properties, “as long as employment continues to recover and interest rates remain moderate, these sales won’t have much impact on overall prices.”

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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. We look forward to working with you in your next real estate transaction.

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http://www.realtor.org/rmodaily.nsf/pages/News2010021602?OpenDocument

http://www.forbes.com/2010/02/25/housing-sales-decline-markets-equities-real-estate.html?partner=alerts

https://www.terradatum.com/

The Wall Street Journal, James R. Hagerty (02/16/2010)

SANTA MONICA CREATES COMMUNITY WITH THEIR GARDEN SHARING REGISTRY

SANTA MONICA CREATES COMMUNITY WITH THEIR GARDEN SHARING REGISTRY

edited by Jodi Summers

Here’s a great idea for Santa Monica property owners with a small area in your yard that you’d like to transform into a productive and beautiful garden, but lack the time and expertise? Consider sharing your soil with an experienced gardener by listing your space on the city of Santa Monica’s new Garden Sharing Registry.

Once registered, you’ll be able to choose from a list of avid gardeners. Together, you and your
gardener will structure a sustainable partnership that makes sense to both of you, including type of gardening project, how the cost of seeds and supplies will be handled, supply storage, length of commitment and availability. Property owners provide land and water, while gardeners do the work. Together, you share the crop!

Bountiful benefits include home-grown produce, fresh herbs, fragrant flowers and a deeper connection with the community around you. Signing up is simple – just complete an application online at
http://communitygardens.smgov.net or call (310) 458-8573.

THE GREENEST CITIES IN THE WORLD

THE GREENEST CITIES IN THE WORLD
 
Edited by Jodi Summers
 
We like lists, it means a lot of research has been done. Today’s dynamic list is from Reader’s Digest;
 they have come up with a list of world's greenest, most livable cities. To compile this list, they have an
alyzed data from two top sources covering 141 nations. We’ll give you the top 26 greenest cities
(as 26 happens to be San Francisco), the rest you can find @
http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

1. Stockholm, Sweden

2. Oslo, Norway

3. Munich, Germany

4. Paris, France

5. Frankfurt, Germany

6. Stuttgart, Germany

7. Lyon, France

8. Dusseldorf, Germany

9. Nantes, France

10. Copenhagen, Denmark

11. Geneva, Switzerland

12. Zurich, Switzerland

13. Glasgow, United Kingdom

14. Barcelona, Spain

15. New York, United States

16. Brussels, Belgium

17. Hamburg, Germany

18. Hong Kong, PR China

19. Newcastle, United Kingdom

20. Tokyo, Japan

21. Helsinki, Finland

22. Washington, D.C., United States

23. Chicago, United States

24. Vancouver, Canada

25. Dortmund, Germany

26. San Francisco, United States

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Sources:

http://images.businessweek.com/ss/07/04/0406_liveable_cities/image/7_frankfurt.jpg

http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

http://www.primetravels.com/PackageImages/699/Stockholm-Sweden_03-360a032607.jpg

http://highendfood.files.wordpress.com/2009/01/frankfurt_skyline.jpg

http://mamofrizzi.files.wordpress.com/2009/06/tb_copenhagen_denmark.jpg

http://www.bertgulick.com/images/05/copenhagen-denmark.jpg

http://www.iho-ohi.org/wp-content/brussels-belgium.jpg

http://library.thinkquest.org/06aug/01253/Hotspots%20in%20Europe/BrusselsCityImage.jpg

http://wallpapers.free-review.net/63__Shibuya_Tokyo_Japan.htm

http://img61.imageshack.us/img61/3771/eiffeltower2cparis2cfrawo0.jpg

http://www.spa.ucla.edu/up/webfiles/tokyo-shinjuku-45_4.jpg

http://paaia.org/galleries/default-image/san-francisco.jpg

http://www.namss.org/images/AC2008/SanFrancisco.jpg