GreenMetrx

          With greater sponsorship of green buildings by private developers and institutional
          invest...
Research
Our company’s objective is to provide unique research and data on the sustainable building
industry. The primary ...
LEED® Certified Buildings in Canada by Building Type

                                         Mixed Use
                  ...
Green Lease Management & Advisory

Our services focus on understanding and evaluating ‘green’ lease principles and concept...
Paradigm Shift: The Commercial Real Estate Sector & Sustainable Building Strategies

         There has been a shift from ...
• There are 32 Canadian signatories, including: British Columbia Municipal Pension Plan, Caisse de
      dépôt et placemen...
A Sample of Downtown Toronto’s Sustainable Commercial Landscape
Exmaples of The Changing Commercial Real Estate Market

Brookfield Properties has implemented a CSR strategy focused on ac...
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Green Metrx Primer

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Green Metrx Primer

  1. 1. GreenMetrx With greater sponsorship of green buildings by private developers and institutional investors...means that the major real estate markets - the markets where institutional investors focus their attention - will be pushed even faster to the tipping point where green building becomes the market standard. This is the inflection point at which performance premiums for green buildings flip to a discount for older, less efficient, conventional buildings. - RREEF Research (February 2009) Company Overview GreenMetrx was founded on the principle that the sustainable building industry will continue to grow in size and in significance, presenting commercial real estate developers, owners, managers, investors, and tenants with significant economic growth and value-add opportunities. The burgeoning green building market will eventually reach a “tipping point” in which sustainable buildings become the framework upon which all other buildings are judged. Overwhelming evidence appears to confirm that this is the case in Ontario and the rest of Canada. As such, GreenMetrx aims to be a key component in the facilitation, promotion, and acceleration of sustainable building strategies throughout Ontario’s commercial real estate sector and abroad. Our company’s objective is to help commercial real estate developers, owners, managers, investors, and tenants leverage the economic, environmental, and social opportunities associated with sustainable building strategies. More precisely, our goal is to help client’s realize the economic, environmental, and social motivations, returns, risks, and value-add opportunities associated with various sustainable building strategies. GreenMetrx’s long-term objective is to be a key component in helping bridge the gap between the ‘physical’ and ‘monetary’ sides of the sustainable commercial building sector, facilitating and promoting the implementation of green building strategies by all commercial real estate stakeholders. Our Strategy The growth and success of GreenMetrx depends on developing and maintaining superior working relationships with commercial real estate developers, owners, managers, investors, and tenants focused on learning about and incorporating sustainable building strategies. Our company aims to help client’s in the following ways: 1. Providing unique Research on the sustainable building industry; a. Focusing on the economic, environmental, and social motivations, returns, risks, and value-add opportunities associated with the adoption and implementation of green building initiatives; 2. Providing a Marketing framework for communicating our research and data to existing and potential clients, including commercial real estate developers, owners, managers, investors, and tenants; 3. Providing Brokerage & Transaction Management Services; a. Green Lease Management & Advisory Service; b. Tenant Representation; c. Landlord Representation; 4. Providing Sustainable Building Valuation & Advisory Services; a. Property Appraisal & Valuation; b. Green Strategic Consulting & Planning; c. Facilities Planning & Management; and, d. Energy & Sustainability Analysis & Management.
  2. 2. Research Our company’s objective is to provide unique research and data on the sustainable building industry. The primary motivation is to assist existing and prospective clients, including commercial real estate developers, owners, managers, investors, and tenants in learning more about the economic, environmental, and social returns, risks, and value-add opportunities associated with sustainable building strategies. Our goal is to develop important and long-lasting relationships with readers and users of our market research and data.
  3. 3. LEED® Certified Buildings in Canada by Building Type Mixed Use Industrial 14 Residential 12 Office 11 School/Library 65 19 Other Retail 45 15 Marketing We hope to achieve our goals using the following marketing resources and tools: Market Reports • Monthly downtown Toronto LEED® Office Market Report, GTA LEED® Industrial Market Report, and GTA LEED® Condominium Report Newsletters • GreenMetrx Quarterly Newsletter Social Networking Sites • Twitter (http://twitter.com/greenmetrx) Brokerage & Transaction Management Green Lease Management & Advisory • Auditing, Renewals, Restructuring, Administration Tenant Representation • Financial Analysis • Location Advisory (incl. site selection) • Lease Negotiation • Market Research & Analysis • Economic Incentives and Survey of Market Alternatives Landlord Representation • Property Acquisition & Disposition • Property Management • Lease Negotiation & Administration • Market Research & Analysis • Property Positioning Sustainable Building Valuation & Advisory Services • Appraisal & Valuation • Green Strategic Consulting & Planning • Asset Optimization Analysis • Market Research • Location Advisory, site selection & economic incentives • Facilities Planning & Management • Review of Operations • Financial modeling and budgeting • Operations and cost audits • Capital Expenditure examination and validation • Energy and Sustainability Analysis & Management • Benchmarking Studies • Efficiency Analysis • Accommodation and workplace strategies • Space Utilization models and trends
  4. 4. Green Lease Management & Advisory Our services focus on understanding and evaluating ‘green’ lease principles and concepts. Tenant Representation Working on behalf of tenants, our focus is on researching and evaluating the economic, environmental, and social benefits and risks of incorporating sustainable building strategies. Our services include the comparison of sustainable commercial floor space versus conventional space and the development and implementation of specific marketing and leasing strategies. Landlord Representation Working on behalf of landlords, our focus is on understanding, evaluating, and presenting the financial, environmental, and social benefits, risks, and value-add opportunities associated with adopting and implementing (and not incorporating) sustainable building strategies. Our objective is on aligning client’s real estate decisions with their overall business strategies. Green Building Valuation & Advisory Services Our firm works to identify the returns, risks, and value-add opportunities associated with sustainable building strategies. Our focus is on helping clients navigate the complexities of the sustainable building industry. Our capabilities include analyzing the product positioning of sustainable buildings and commercial floor space relative to conventional buildings. Property Appraisal & Valuation Working with commercial real estate owners and managers to research and evaluate the financial feasibility of adopting and implementing sustainable building strategies. On behalf of clients, the focus is on assessing the economic growth and market value of commercial real estate assets resulting from the incorporation of green building strategies. We also provide analysis and valuations on existing green building strategies and their impact on the financial value of commercial assets. Green Strategic Consulting & Planning Our firm works with clients to obtain the necessary information and framework to conceptualize, plan, develop and implement green building practices and policies. The focus is on targeting methods and procedures that improve the financial returns and reduce the operating risks of owning and managing commercial assets. Our firm works with clients to monitor performance metrics, report on operating initiatives and costs, and ensure green program standards and certification levels are being properly adhered to. Facilities Planning & Management Strategic facilities planning includes the assessment and reporting of building capabilities, including facility operating practices and procedures. Working closely with clients to streamline facility ownership, management, and leasing processes and procedures. The focus is on continually improving the operational and financial performance of client’s facilities. Energy & Sustainability Analysis & Management Particular focus is given to benchmarking current facility operations with an emphasis on improving short- and long-term operational consumption and costs. Resources at our disposal include building simulation and energy modeling tools.
  5. 5. Paradigm Shift: The Commercial Real Estate Sector & Sustainable Building Strategies There has been a shift from anecdotal evidence to well-documented case studies and comparative analyses indicating that provisioning of sustainable property investment products and related consulting services offers a major opportunity for property professionals to increase financial returns, as well as their standing within society and the business world. Yet, this opportunity remains largely untapped due to various reasons. - Journal of Sustainable Real Estate (2009) As of March 2010, the CaGBC reported that there were 249 LEED® certified buildings throughout Canada. Those buildings translate into 2,414,927 m2 (25,994,058 ft2) of green space and a market penetration of LEED® certified floor space of 0.0036%. However, the market penetration of LEED® certified space has increased significantly since the first LEED® certified building in 2002. For example, the growth rate (in psf) of LEED® certified office in downtown Toronto continues to trend upwards at an increasingly robust rate. Downtown Toronto LEED® Certified Office Space 15,000,000 Square Feet 11,250,000 7,500,000 3,750,000 0 2008 2009 Q1 !10 Q2 !10 Q3 !10 Q4 !10 2011 2012 2015 LEED® Certified Total Inventory (sq. ft.) The Rise of Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) Principles and Concepts The Growing acceptance of the idea of corporate social responsibilty by organizations, corpoartions and other stakeholders across creates a demand for investment opportunities and products that adhere to the principles of sustainable development. This demand is further strengthened by the growing body of acedemic research evidencing that socially responsible investing (SRI) and corporate social responsibilty (CSR) programs do not result in inferior financial performance compared to conventional business practices. - UN Environment Programme Finance Initiative ...and Sustainable Development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. - The Brundtland Commission (for the United Nations) United Nations’ Principles of Responsible Investing (PRI) • UN’s PRI initiative seeks to incorporate, promote, and enhance ESG issues as part of the fiduciary duties and responsibilities of institutional investors • As of June 2010, the UN PRI has 758 signatories representing asset owners, investment managers and professional service partners
  6. 6. • There are 32 Canadian signatories, including: British Columbia Municipal Pension Plan, Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board, BC Investment Management Corporation, Bentall LP, and TD Asset Management Inc. Responsible Property Investing (RPI) • As of July 2008, the Social Investment Organization (SIO) argues there was more than $609 billion invested in ‘core’ and ‘broad’ SRI assets in Canada. • SIO found that $54.2 billion was specifically invested in core SRI assets in Canada • For example, an allocation of between 10% and 20% ‘core’ SRI assets would mean an investment of between $5.42 and $10.84 billion in sustainable real estate assets. The Tipping Point: The Increasing Economic Growth & Market Penetration of Sustainable Buildings With greater sponsorship of green buildings by private developers and institutional investors...means that the major real estate markets - the markets where institutional investors focus their attention - will be pushed even faster to the tipping point where green building becomes the market standard. This is the inflection point at which performance premiums for green buildings flip to a discount for older, less efficient, conventional buildings. - RREEF Research (February 2009) Commercial real estate developers, owners, managers, investors, and tenants continue to commit greater resources and capital to adopting and implementing corporate social responsibility (CSR) and environmental, social, and governance (ESG) principles. Developers & Asset Managers Reduced Risks • Market Risks; Regulatory & Legislative Risks; Pricing Risks; and, GHG Emissions Risks, etc. Increased Tenant Demand • Higher Occupancy Rates • Lower Vacancy Levels • Reduced Churn rates Rental Rate Premiums • Higher rental rates for LEED® and Energy Star buildings Increased Market Values • Overall Capitalization Rate (OCR) Analysis • Lower Capitalization Rates due to higher quality and lower risks • Discount Cash Flow (DCF) Analysis • Higher NPV’s for pursuing green buildings instead of conventional buildings • Direct Comparison Approach • Sales premiums Tenants Increased Tenant Demand • Improved Human Capital • Increased worker productivity and employee morale • Less worker absences and ‘sick’ days and Improved organizational performance • Improved Corporate Reputation (‘Halo Effect’) • Building and imrpoving corporate brand and image
  7. 7. A Sample of Downtown Toronto’s Sustainable Commercial Landscape
  8. 8. Exmaples of The Changing Commercial Real Estate Market Brookfield Properties has implemented a CSR strategy focused on accomplishing three objectives: 1) incorporating innovative energy conservation strategies to achieve best-in- industry environmental performance in all new office developments; 2) capitalizing on opportunities to redevelop, redesign and renovate properties within the existing portfolio to realize maximum energy efficiency and a reduced carbon footprint; and, 3) taking leadership positions in green industry organizations and undertaking new initiatives that foster the sustainability of commercial properties. As part of their commitment to sustainable building strategies, Brookfield has pledged to build all new developments to a minimum standard of LEED® Gold. Another example is Oxford Properties. Oxford has implemented their “Sustainable Intelligence” program which aims to track the environmental performance of their properties using seven key indicators, including: energy and atmosphere (electricity, natural gas and natural emissions); water efficiency; sustainable site; materials and resources; and, indoor environmental quality. Oxford’s sustainable intelligence categories align with the LEED® rating system. There is also the case of First Capital Realty. First Capital’s environmental stewardship program consists of three main criteria: 1) embedding corporate sustainability within corporate structures, policies, procedures, and governance; 2) operating, creating, building or developing centres that positively contribute to the surrounding communities; and, 3) building and operating within the leading parameters of recognized environmental standards. According the company’s corporate responsibility report, all of First Capital’s new development projects are being built according to LEED® standards.

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