EVE® Tenants Representation

Bratislava 23 September 2013

Shopping Bratislawa

The performance of any enclosed space is best measured by the energy it consumes. A poor performing commercial centre clearly demonstrates to consume far more energy than a well managed one. Whilst any defective centre might truly costs the environment inevitably all of the cost of the energy is, for sure passed on to the tenants.

“Even the best performing Retail Centres can perform better by reducing common building defects, this is a real saving for retailers 20% across the board on all retail space.”

Where EVE® is different

Traditionally, building performance has been criticized by surveyors the defects are measured by technique, completeness or aesthetics failure rather than real KPI’s. EVE® [Energy Value Engineering] is different it focuses on performance first giving real numbers to technical due diligence. EVE® technical due diligence teams use state of the art equipment and technology to measure defects against industry benchmarks, real proof of performance rather than opinion.

Regular due diligence, building adjustment and defects rectification means lower bills, better environments, more satisfied retailers and far more successful building owners. EVE® can be carried out quickly even remotely it is highly cost effective as a management tool. Even the largest retail centres in Europe can be surveyed in one day.

“Many facilities operators are either unaware or go to extra ordinary lengths to hide the true KPI’s. Statistics get distorted through restrictive management practices even “Energy Starvation” so how can the retail tenant distinguish between good performance and poor performance?”

Tenant Representation

Traditional tenant representation targets “rate capping” for example new leasing contracts [in desperate times] limit cost increases for electricity which the building owner can charge the tenant. This practice is rather short sighted and onerous it simply means that a higher proportion of costs in future are handed over to fewer tenants. Generally retailers with large portfolios loose across the board rather than gain because of these practices

Far better is to target the volume of consumption of energy and reduce the footprint for everyone’s benefit. If buildings are maintained in better technical condition everyone benefits. Most often in newer buildings defects under warranty simply go unmanaged, so truly value added tenant representation focus on technical correctness to save costs for everyone.

The Book of Benchmarks

SOLIDEA Group EVE® Services provide tenants technical representation for roll-out programs throughout Central Europe. Technical Due Diligence and a knowledge base on building performance through “the book of benchmarks” demonstrate to be critical tools for the management of retail anywhere.

A benchmark is a norm through which any centre performance can be measured. Installing smart metering for real time event management or simply conducting regular EVE® audits at season changes creates a better managed environment. High tech monitoring of the building envelope and the indoor air quality combined with seasoned industry knowledge delivers first class results.

“Operating buildings 1 degree above or below the designed temperature can save up to 6% of the total energy consumption, these hot or cold buildings create poor retail and work environments. We call this level of operation energy starvation”

Defective buildings compromise energy performance. Most often building operators are not informed or fail to monitor KPI according to good practice. Having no benchmark regards ones own performance is a common failure of management. In any event the building owner simply passes the cost down the line to the retail tenant.

Having a side by side analysis means any retailer has a comprehensive list of the best and worst performing centres in Central Europe. Being presented to the whole retail industry as least performing is motivation enough to become proactive improving energy performance.

Where to start?

Often energy claims are well founded especially where building owners are consistently negligent. Retail instigated auditing though third parties can motivate immediate results. Although SOLIDEA Group is able to provide full expert witness and claims advisory services in Central Europe we recommend engaging the EVE® team for more regular services first.

All building users are more tolerant of lesser circumstances if they are informed and involved. Any proactive road plan to reduce energy consumption is usually welcomed in any commercial community. EVE® technical due diligence is the best place to start to reduce energy, knowing what can be done most easily to reduce costs has the greatest impact and cost savings.

Commercial Centres become redundant faster through poor management. EVE® Services works out with tenants [and tenant association representatives] and building and facilities owners to reduce energy costs and to reduce CO2 together. Where side by side analysis demonstrates critical defects building owners are almost always diligent. Who would want the label “worst performance in class?”

As a third party “after the meter” consultant SOLIDEA Group EVE® Services are able to reduce tensions between owners and tenants an “open book” approach eliminates friction setting realistic environmental road maps for reducing energy for the benefit of both parties to 2020.

The Advent of LED

As pressure mounts to reduce energy consumption and white certificates induce better building practice “flagship” energy efficient retail centres will install LED lighting. Several EVE® clients are committed to 100% LED in the next 36 months in all of their retail centres.

LED has a distinct advantage over traditional HID lamps as they use far less energy and produce almost no heat. With far more color range and potential to reduce energy by 70% or more in direct savings, LED is a popular choice. LED will greatly reduce the amount of small gains heat generated in off peak times [most of the shopping day] and retailers will be claiming discounts for up to 26% of cooling in circulation at this time.

The Advent of LED is inevitable however it presents a great deal of problems for retail and other commercial centre owners.  A lot of conflict can be avoided by encouraging all parties to adopt LED lighting not just some.

Eventually Who Pays?

Many buildings are still under warranty and a well played contract benefits the building owner by charging all of the Employers Representation [ER] to the builder including the due diligence.

EVE® is a low cost program with a packaged cost for facade and building envelope or full building due diligence. EVE® is designed to reduce energy consumption in Stage ONE by overcoming building defects. EVE® Stage TWO services provides metering and management for any type of retail roll out. EVE® Stage THREE provides expertise for energy saving devices and EVE® Stage FOUR focus on offset of energy using renewable energy generation.

EVE® is an “after meter service” and for SOLIDEA Group energy clients is free of charge.

Energy Education and Summing Up

Operating awareness, training and education including monitoring of consumption [especially garbage separation] creates better community. Better training of technical staff improves performance, using state of the art equipment measuring air leakage, heat loss and many different forms indoor air quality keeps both sides informed.

“In climate controlled commercial centres there seems to be confusion between insulation and air-tightness. The result of unmanaged building fabric and defective air handling systems account for more than 20% of the industries energy bills of which at least 100% is passed on to the retail tenant”. 

Unfortunately the commercial tenant has little control over the building fabric and the good order and management of the facilities in which the tenant occupies. As facilities life cycle progresses buildings become defective, energy bills increase and the extra over cost of energy as a result of defective systems is simply passed on to the tenants.

Many EVE® clients order our Stage ONE services as an alternative to other technical due diligence services. We welcome all retail clients and look forward to save money and reduce CO2 together.

About Steve

Over 20 years in Real Estate and Energy Project Development
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