NEWPORT BEACH, CA-Green practices in building operations are becoming more and more commonplace, especially in California. As GlobeSt.com recently reported, California was ranked the No. 1 state in the country for recycling and earned high ratings for both renewable energy and an overall “best” rating for “green” practices, according to mphonline.org, a website devoted to information about Master's in Public Health degree programs. GlobeSt.com recently caught up with Steve Core, president of locally based leasing and property-management firm RiverRock Real Estate Group, to discuss why green practices matter so much to his firm and how it promotes the concept with its office clients.

GlobeSt.com: Why are green practices so important to your firm and its clients?

Steve Core: There are several reasons why sustainability is important. In some markets, like San Francisco, it is a market issue: companies want to see green efforts and sustainability in practice. At this point in time, we haven't seen any premiums on rates because of operating sustainably, but it can impact the attention your asset receives. In all markets, operating in a sustainable manner—particularly when it comes to utilities—drives savings to the tenant and increases value to the owner. The best reason to support its importance is that it's just the right thing to do!

GlobeSt.com: Which green practices do you support most? Which work best for users?

Core: The low-hanging fruit are the recurring services such as janitorial, landscape, engineering, etc. We incorporate green chemicals, products, recycling programs, etc., into all of our specifications and practices. Generally, there isn't any cost increase to these types of specification modifications, and they can easily be accommodated. We also look at building ours and shifting services like after-hours/weekend requests for lighting and HVAC to an on-request basis. Not providing cooling to a 350,000 square-foot office building that is mostly vacant on Saturday morning impacts the bottom line in a big way, a true win-win. When capital is available, we look at the larger projects such as VFD, landscape and irrigation upgrades, lighting, etc.

GlobeSt.com: Which areas of sustainability are the most difficult to implement at the real estate level, and what can be done about this?

Core: There are certain items like LEED certification or the utilization of solar panels and vehicle-charging stations that can be difficult to incorporate depending on a property's cash-flow position or even the owner's targeted hold period. We've evaluated buildings that would require cost-prohibitive HVAC upgrades to obtain a qualifying Energy Star score, the first step toward LEED certification. Some of our hold periods aren't conducive to signing a 20-year equipment lease, and some clients are hesitant to create easements on the property to accommodate some of the contract requirements.

Sometimes the larger items can't be implemented, but there is always something managers can do to lower operation costs, reduce a building's carbon footprint and incorporate sustainability into their daily operations. A little forward progress is better than standing still.

GlobeSt.com: What else should the industry know about green practices?

Steve Core: The mistaken assumption has always been that it costs more to operate sustainably. Over the years, manufacturers have learned how to manufacture and package the products we use in a less-expensive manner, and just paying attention to your building systems doesn't cost anything and will drive efficiency. You'd be surprised how many times we take over a building and find out that HVAC equipment has been running 24/7 for years, and with a flip of a switch we reduce consumption and save everyone a little money. There are a lot of low/no-cost options out there to help in the evaluation of an asset. Start with the local utility provider and go from there.