Go Green or Go Home!  Being from California, going Green is not longer optional. Since 1978 for residential projects and 1980 for commercial projects, California has steadily increased energy-efficiency requirements for new construction. These regulations are Title 24. The Code for all the regulations is Title 24.
The original intent of Title 24 was to conserve energy, but not to save money. As the years have gone by, the Code has evolved to dramatically increase the cost of construction. Why does California need Standards? Energy savings comes to mind, and for commercial buildings (office, industrial, tech etc,) the two biggest components for energy consumption (potential savings) are HVAC and Lighting.
Many of the regulations, while innovative, may not pencil for developers. And when things don’t pencil either rents go up or things don’t get built. For example when planning a tenant space, Title 24 calls for “Light Harvesting” which mandates that all lighting is calibrated to turn off when no one is in a portion of the space. Take it a step further, you have to consider the orbit of the earth; based on the position of the sun (consider the afternoon sun shining on your windows) HVAC and lighting can be adjusted to turn off or throttle down.
You may remember the 2000/2001 energy crisis in California. Since then, the Energy Commission has placed more emphasis on energy consumption. Building components that Title 24 covers is all encompassing – from the envelop – to the guts of the building. The other goals for Title 24 are:
Efficient buildings are more comfortable for the occupants and the delivery of light, heating and cooling is much more consistent throughout your premises.
- Economics- In the early years much of Title 24 was a nuisance and big energy saving improvements didn’t really pencil. That has changed dramatically as technology, particularly in Solar, has improved.
- The Environment
- Curtailment of greenhouse gases
Many tenants considering new locations will give environmentally friendly, energy efficient buildings “points” in their property selection matrix. It just feels good, and potential employees and clients take notice.
If you are considering a space that requires significant tenant improvements, proceed carefully. Older buildings may not comply with current ADA or energy codes. When a landlord applies for permits, the City may require upgrades to meet current standards. Those upgrades can add significant costs to the project. Some landlords avoid tenants who require extensive improvements. Instead, they wait for tenants who need fewer upgrades.
For that reason, address these issues early in the negotiation process rather than just before signing a lease.