Office Space Advice
Q&A: Brian Folb Discusses Green Executive Office Suites
Published April 30th, 2009 by Jennifer LeClaire
Paramount Contractors and Developers is what you might call an early adopter of green technologies in its executive office suites. During the past decade, the Hollywood, California-based company has invested in green technology to improve building efficiency while reducing environmental impact.
Paramount claims to be the first in Hollywood to incorporate solar panels and electric vehicle charging stations in its Sunset Boulevard properties, for example. Its buildings feature a new HVAC system that has automated heating, cooling, lighting and other features that drastically reduce the amount of energy used, while at the same time providing increased tenant comfort.
Currently Paramount Contractors and Developers are exploring a partnership with 3M to experiment with a new technology window film that provides greater visibility, while helping to insulate the building and cut down on overall heating and air conditioning costs. Another future eco-initiative planned includes upgrades to each building’s internal lighting to conserve more energy. All of these new projects, combined with the extensive retrofitting already completed for both properties, have also allowed Paramount to apply for the revered LEED certifications.
aBetterOffice.com caught up with Brian Folb, principal of Paramount Contractors & Developer, discuss the state of green in the executive office suites industry.
Is the green movement making its way to executive office suites?
I think all aspects of our society have been impacted by the green movement, but there is a more significant concern at this time due to the state of the economy. Property owners are thinking more now about how they can save on operating costs. In our office buildings we’ve installed occupancy sensors that turn off the lighting automatically in areas that aren’t occupied. The lights will come back on automatically when people enter the room. We’ve also retrofitted the lighting system with energy efficient electronic ballasts and light bulbs, making the environment safer and dramatically lowering costs. We’ve also changed out the inefficient pneumatic air conditioning thermostats with the much more precise and energy-efficient electronic digital type.
At what stage are we in the ‘greening’ of executive office suites?
I think as more government incentives become available, building owners will be more encouraged to do more. We take advantage of the incentives, but frankly they aren’t as economically practical as they need to be to get everyone going on this. If the incentive can’t create the opportunity for the property owner to realize a return on the investment where the cost of the product and the installation pays for itself in no more than a couple of years, most banks and/or investors will not approve of the expenditure. Since we don’t need to answer to a bank or outside investors, it makes a whole lot of sense to us even if it is going to take five to 10 years for us to retain the pay back on the initial investment because we are in this for the long haul. However, in today’s economic climate, banks and investors need to see an almost immediate pay back in order for them to justify any kind of significant expenditure.
In what other ways are executive office suites ‘going green’?
Beyond what I already mentioned, we’ve also installed water saving devices on all the sink faucets and flush devices on the toilets and urinals. We retrofitted to low flow toilets and urinals and waterless urinals are also becoming more practical. We further encourage recycling by providing each office with a recycling container. This makes it easier for office occupants to dispose of their paper products allowing for recycling paper. Unfortunately, many of the private trash vendors do not offer recycling options for plastic, metal and glass products and if they do, it’s cost prohibitive for the property owner or to pass this cost on to the tenants.
What benefits are executive office suite owners seeing from the green initiatives?
Costs for green products are coming down as the technology has improved and the manufacturing of the products has increased due to an increase in demand.
What about from the tenant perspective? What are the benefits there?
In the same way owners benefit from lower costs due to improved technology and the increase in demand for green products, tenants get the benefit of lower rents, as these costs are typically passed on in the form of rental increases or operating expense pass throughs. Tenants further benefit by getting introduced to green products they may not be familiar with and the opportunity to implement these cost savings and environmental benefits into other aspects of their lives, including in their own home.
Are could-be tenants choosing green executive office suites over their non-green counterparts, given a choice?
This is hard to say. It depends on the individual tenant and their overall goals. I think if the overall cost is going to be the same or relatively close to the same, they’ll opt for the green option, however, if there is a large disparity in the cost, the green option loses its value.
What do you see as the future of green executive office suites? How far will this trend go?
I think as technology continues to create new and improved products at lower costs, demand for these products will increase and green products will be here to stay. Green technology is also getting better all the time, creating products that are even more energy efficient and environmentally sustaining. Besides it’s sexy to be environmentally responsible and feeling you are doing your part to help save the planet.
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Rob Zeus April 30th, 2009 at 11:36 am
This is helpful. I don’t think there are any real clear answers on where the executive office suites industry is on going green. But I have noticed office developers in general building new facilities with environmentally friendly features in mind. This will trickle down to the serviced office space level as companies lease floors to re-rent to short-term tenants.
Elizabeth Sanchez April 30th, 2009 at 11:44 am
I did a quick search on green executive office suites. Guess what I found? Thinkspace, an couple of other articles on abetteroffice.com, serviced offices in Green Bay, Wisconsin, and a company called Melaver Executive Office Suites. I also found a story about executive office suites providers in Seattle adding value by going green. That was just on the first page. I think this is a definite trend.
Melanie Jones April 30th, 2009 at 12:20 pm
Eventually, the government is going to make office space developers build green buildings. It’s just a matter of time, really. In fact, in California I believe there’s already a law on the books that will mandate green building by 2010. Executive office suites will be green, then, by default. At least the new ones.
Jennifer LeClaire April 30th, 2009 at 12:27 pm
California is on the cutting-edge of progressive environmental law and policies. With increasing federal focus on energy issues, California is positioned to see benefits from any federal money invested in the green economy and the state’s green building code, which the California Building Standards Commission adopted in July 2008, is expected to be incorporated into the 2010-2011 building code cycle. California is the first to pass a statewide “green” building code.
The new California Green Building Standards Code goes well beyond the current building standards. These code aims to yield significant improvements in water usage for both commercial and residential plumbing fixtures and target a 50 percent landscape water conservation reduction. The code also pushes builders to reduce energy use by 15 percent more than the current standards.
California’s new building standards will result in increased water and energy savings through a combination of more efficient appliances, use of efficient landscapes and more efficient building design and operation. The code also encourages the use of recycled materials in carpets and building materials, and identifies various site improvements including parking for hybrid vehicles and better storm water plans.
Moving forward after 2010, the California Green Building Standards Code will be updated on an annual basis to ensure that the latest technology and methods of construction have been incorporated to always maintain a high level of standards. It may cost companies more to build facilities in the short-term, but the long-term payoff of building and operating green facilities has been proven time and again. Companies that locate in California can benefit from the state’s eco-friendly government policies.
Bill Brookshire May 1st, 2009 at 1:47 pm
OK, so it looks like there’s no doubt California is going green all the way around. Considering the legislation, we can definitely expect to see more green executive office suites. The question, I guess, is whether or not this will become a mandate for the whole country under President Obama. My guess is that it will over time.
Maggie Correta May 1st, 2009 at 1:49 pm
There is a big push to invest in technologies that will make office buildings more environmentally friendly. Only when these technologies become more affordable does it get realistic for small to mid-sized executive office suites operators to invest in them. Some are always on the cutting-edge, but these technologies are generally expensive, despite the promised ROI.
Jennifer LeClaire May 7th, 2009 at 12:10 pm
I think the whole world is going green. Why should the executive office suites industry be any different. Someone made the point that serviced office facilities might go green whether they want to or not if they are leasing space from a developer who decides to make green renovations. That’s a really good point.
Marcus Hester May 8th, 2009 at 2:54 pm
I love these Q&As. Keep them up. Good stuff. This one was a great look at how the executive office suites industry is moving towards green initiatives. I think serviced offices could do a lot more, whether or not they are leasing space from a green office developer. There are many eco-friendly practices you can put into place in your office space.