Paramount Green Informer
Sustainable Practices for a Sustainable Future
1325 Avenue of the Americas:
Operating Efficiency and Energy Management were the keys to 1325’s
Earth Award Win!
Volume VI, Issue I April 2015
February 26, 2014 was an eventful day for Paramount Group as Chelsea Piers hosted the 2015 BOMA Pinnacle Awards. The highlight of the night
came as 1325 Avenue of the Americas received the sustainability-focused Earth Award. 1325 was described by its judges as, “Elegant, stylized and
sustainable, 1325 Avenue of the Americas achieved its green credentials through careful, comprehensive analysis and a commitment to bring every
operational practice, building system and piece of equipment to its highest and best use.”
This award is a product of the hard work put in by the entire Property Management team that has dedicated itself to improving operational efficiency at
every turn. Water conservation, energy conservation, real-time energy monitoring, and technological upgrades are at the heart of 1325’s sustainability
success.
The dedication and continuing education of our engineering and janitorial teams have led to substantial increases in our recycling rate, and similar
decreases in our energy consumption. Our real-time energy measurement system allows our engineers to adjust immediately to changing weather
conditions, among other factors, to appropriately manage energy consumption while maintaining a high level of tenant satisfaction.
The portfolio-wide efforts of earning higher LEED certifications and Energy Star scores continues to aid 1325’s ongoing operations. Monitoring
our energy consumption has led to an Energy Star score that has consistently been over 80; and while the building is currently certified LEED Silver, we
will be looking to take it to LEED Gold in the coming year. The team here has been working diligently to increase our point totals and resubmit the
building to the LEED regulatory agency, the United States Green Building Council. We are confident this will be achieved.
While many recently constructed buildings are built with LEED designations and sustainable practices in mind, older construction like 1325 can
still be a prime example of how to run an efficient building. 1325 exemplifies Paramount Group’s ongoing commitment to reduce energy consumption
across our entire portfolio, as our Earth Award submission noted, the Paramount Group Portfolio has achieved the following results since benchmarking
our energy performance began in 2008:
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Reduced energy usage by 10.8% since 2008
Achieved a portfolio-wide Energy Star average of 81
Achieved Energy Star ratings for 13 of 14 buildings
Special points of interest:
• Liberty Place earns the BOMA 360 Award in December 2014
• 712 Fifth Avenue’s Sharon Faulkner wins Security Professional of the Year!
Inside this issue:
Security and Sustainability: Sharon Faulkner
The focus on sustainability efforts in commercial real estate tends to be on issues such as energy management, water conservation and air
quality. Regardless of the benchmarking standard used by a property, almost all surveys and credentials include tenant and employee
satisfaction as part of your sustainability evaluation. Sharon Faulkner, a seven year veteran of Paramount Group’s security team, was recently
awarded the REBNY Security Professional of the Year Award. Not only does Sharon excel in her daily duties, but she plays a vital role in
improving the experience for our tenants and fellow employees. She is technically proficient, having achieved the Emergency Action Plan
Director designation in three of Paramount’s New York properties. As her award submission reads, “It is not just because she does her job
proficiently, it goes beyond that, Sharon has a likeable personality, she is always sincere and the tenants trust her.” Sharon’s efforts have not
gone unnoticed by her fellow employees and the tenant’s at 712 Fifth Avenue. She has an unparalleled work ethic that consistently exceeds
expectations. She is an incredible asset and valued member of the Paramount Group Property Management staff.
GRESB Survey: Investing in Sustainability
Over the past decade sustainability reporting has become an increasingly important part of the commercial real estate field. Like an accountant reporting
financial performance, we have seen the advent of what can be described as “sustainability accountants” reporting on a company’s sustainability performance.
This is a very exciting and ever-changing area of our industry. Just like a publicly-traded company is forced to present its financial performance, investors are
demanding similar reports on a company’s sustainability performance. One of the vehicles used by the commercial real estate industry to report on
sustainability is the Global Real Estate Benchmarking Survey (GRESB).
Nils Kok, founded the survey in 2009 as a way investors could monitor, compare and evaluate the sustainability performance of commercial real
estate portfolios across the globe. The GRESB’s website describes the survey as a, “dynamic benchmark used by institutional investors to engage with their
investments with the aim to improve the sustainability performance of their investment portfolio, and the global property sector at large.” The survey has
caught the attention of the global real estate markets with global participation skyrocketing over the past several years.
Participating members are graded against their peers and the real estate industry at-large. This sophisticated survey is centered around two main
categories 1) Management and Policy and 2) Implementation and Measurement. The survey uses existing benchmarking tools like Energy Star to help
aggregate the measurement data, and participating companies will spend months updating and reviewing their submission data. The goal of every company is
to achieve “the Green Star Label” by achieving combined scores of over 50 in both categories.
Above is an example of GRESB’s performance chart from gresb.com
Liberty Place Carries on the Paramount BOMA 360 Award
Tradition
As the “360” designation implies, the BOMA 360 awards are given to buildings that achieve all-around success in the following operational
categories:
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Life Safety / Security / Risk Management
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Training and Education
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Energy
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Environmental / Sustainability
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Tenant Relations / Community Service
Located just a few blocks from both the Capitol and White House, Liberty Place remains a prized asset. In addition to its great location and unique
design, Liberty Place has proven that operationally it is one of the best managed properties in Washington, DC. Property Manager, John Bone,
and the members of his team in Washington, DC were a sure bet to be recognized by BOMA in this manner.
The 360 designation is renewed every three years and forces members of the Property Management team to maintain a high performance
level. The Paramount Life Safety and Loss Prevention Plan, our advanced energy monitoring systems, and first class tenant service all came
together to assist making this achievement possible.
As the Chair of the BOMA 360 committee stated in his congratulatory letter, “you are among an elite group of properties that have
demonstrated that their buildings are managed to the highest standards of excellence.” This will come as no surprise to the people that interact
with the members of our Property Management team in Washington, DC.
Liberty Place joins the ranks of three other Paramount properties that have previously been awarded the BOMA 360 designation. In 2011,
One Market Plaza located in San Francisco earned the same designation for its similar performance. Not to be outdone, the following year our
Waterview property in Virginia became the second property to achieve the 360 designation. 425 Eye Street continued the streak in 2013 by also
earning the award. Liberty Place has become the fourth Paramount Property, and definitely not the last, to be honored with the BOMA 360
designation.
The Age of Green Leases
As the previous article discussed how investors are starting to measure sustainability, the leasing world is also going through a
transformation regarding the implementation of “Green Leases.” While a more traditional lease will set the terms of a tenant occupying a
Landlord’s space, a green lease forces both the tenant and landlord into commitments that will benefit other stakeholders including the
environment and surrounding community. A Green Lease does not demand a complete overhaul of traditional leases, greening a lease can
be as simple as changing existing terms such as temperature settings and operating hours. Small changes to more traditional terms across
an entire portfolio can generate substantial savings in terms of energy and dollars. Author Meaghan Farrell offers Ten Reasons Green
Leases Create Value:
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Reduces utility consumption
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Improves working relationship between Tenant and Landlord
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Supports corporate sustainability objectives
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Enhances your corporate or brand image
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Demonstrates vision and leadership within your industry
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Improves civic relations in your community
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Will assist in LEED and other certifications
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Improves employee productivity
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Waste-stream diversions can increase savings
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Green Lease is good for the environment.
As stated, the main drivers of Green Leases come down to the tenant and Landlord both equally buying into commitments that will reduce
energy consumption. The main benefit received will be in terms of cost-savings for both the tenant and landlord, and the other environmental
benefits that will be shared by community at-large.