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February 2016
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Welcome to BuildingsOne February 2016 Newsletter!   

Tom Griffin

Within days of World Meteorological Organization (WMO), and other climate-science organizations, reporting that 2015 set the all-time record for the warmest average annual temperature across global lands and oceans, a blizzard -"Winter Storm Jonas" - produced up to 3 feet of snow in the Mid-Atlantic and Northeast United States.  In the wake of this record-breaking snow event, the Snow Removal Expenses article offers insight into the potential adverse impact, associated with significant variations in annual snow removal expenses, in a modified gross lease investment property.    

February's newsletter highlights the recent (21st century) pattern of warmer annual ocean and land temperatures - Global Warming Focus.  Office building outdoor air ventilation standards are also reviewed.  In particular, specific outdoor air CFM requirements are introduced, through a practical review of the purpose, concepts and applications outlined in ASHRAE Standard 62.1-2013.  Our feature property is the architecturally elegant Woolworth Building, a National and New York City Landmark.

We hope you enjoy, and we look forward to hearing from you.  

Warmest regards,


Tom Griffin, CPM, LEED Green Associate
BuildingsOne Founder

Global Warming Focus 2015 Review


According to the National Oceanic and Atmospheric Administration (NOAA), the 2015 average temperature, across the global land and oceans, was 1.62 degrees F (.90 degrees C) above the 20th century average.  2015 was globally the warmest year since record-keeping began in 1880, according to NOAA and the National Aeronautics and Space Administration (NASA).  The  higher temperatures also represented the largest margin by which the annual global temperature record has been broken. 

The occurrence of El Nino, a natural weather cycle in the Pacific Ocean, that warms the ocean surface temperatures every two to seven years, contributed to the sharp increase in overall annual global temperatures.  However, according to Gavin Schmidt, director of NASA's Goddard Institute for Space Studies, "Although El Nino enhanced the rise in global temperatures, 2015 still would have broken the record without the warm-water phenomenon".  

GLOBAL TEMPERATURES | RECENT TRENDS

NOAA and NASA have slight variations in global temperature measurement methodology.  Even with differences in temperature measurement, their records indicate fifteen of the sixteen warmest years on record have occurred since 2001.  

Additional information can be found at: www.noaa.gov and www.nasa.gov.

Institute of Real Estate Management
Leadership & Legislative Summit
Featuring Capitol Hill Visit Day
Washington, DC
April 9 - 13, 2016

 
Woolworth Building
An early skyscraper, National Historic Landmark since 1966, and New York City Landmark since 1983, the Woolworth Building was the tallest building in the world upon completion in 1913 until 1930.
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Outdoor Air Ventilation | Office Standard


ANSI / ASHRAE Standard 62.1 - 2013 

"Landlord's HVAC system design capacity shall equal or exceed         outdoor air requirements specified in ASHRAE Standard 62.1-2013" (prospect tenant lease clause).  Is your building's HVAC system design and operating parameters in compliance with the most current version of ASHRAE Standard 62.1?  ASHRAE Standard 62.1 is the industry accepted standard of compliance for HVAC ventilation criteria, in commercial, institutional, and high-rise residential buildings.    

ASHRAE 62.1 is considered "The Ventilation Standard for Acceptable Indoor Air Quality" and the basis for ventilation codes including the International Mechanical Code (IMC).  The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), includes 50,000 members that provide expertise and establish standards in Heating, Ventilation, and Air-Conditioning (HVAC) building systems, energy efficiency, indoor air quality, refrigeration, and sustainability.  


Compliance with ASHRAE 62.1-2013 is also a prerequisite for LEED-NC (New Construction) credits within the LEED EQ | Indoor Environmental Quality category.    

Read full article.

Snow Removal Expenses 
Managing Recoveries in a Modified Gross Lease Property   


Are your property's year-end snow removal expenses indicative of an extraordinary winter season, comprising multiples of historical average snowfall events within the region?  How does your building's annual snow removal costs compare to last year's snow removal costs?  What about the previous three to five year average?  

Extreme weather can cause as much disorder, to an investment property's operating expense recovery process, than to the operations itself.  In a modified gross lease structure, the inclusion of greater-than-average annual snow removal expenses, in a tenant's base year, can negatively impact a property's long-term value.  The manager's administrative adjustments, to wide variations in certain building operating expenses, can benefit both property owner and tenants, in the overall management and control of operating expense escalation.


"If there's just a handful, of operating expense categories, that warrant the manager's year-to-year comparison, in order to discern expense anomalies, the snow removal expense category is one of them".  In particular, during the establishment of each tenant's operating base year - "setting the base year", a comparison of current and previous years' recorded general ledger expenses, will help ensure a "true and accurate base year" with consistent representation of operating expense inflation and escalation during subsequent "comparison years".      

Read full article.

About BuildingsOne


BuildingsOne maintains a comprehensive library of commercial real estate documents and templates, covering all core property operating and administrative practices, that can be easily modified to suit the real estate manager's specific needs.

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Library Series
Accounting & Operating Expenses
Administration & Operations 
Energy & Utilities
Lease & Legal Administration
Life Safety & Security
Technical Services


Documents and templates, recently added to the library, include:

Outdoor Air Standard - Ventilation Procedures {PDF Document}
Outdoor Air Standard - Calculations {Excel Template}
Security Services Request for Proposal (RFP)
Fire & Evacuation Drill - Best Practice Procedures
Fire & Evacuation Drill - Forms Package 
Fuel Systems & Underground Storage Tanks (UST) - O & M Best Practice
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