Potential Savings From an Energy Audit

Efficient use of resource reap big returns. Assessments like building condition surveys, ESA and physical needs assessments guard for the future and tell a business owner how to make his or her building run more efficiently.

The same goes for energy. By taking efforts to reduce energy use, you can save at least hundreds of dollars a year. After an energy audit, businesses often save anywhere from 15 to 40 percent on energy costs. That's a lot of money to be saving every year. On top of the savings you'll naturally get from performing an energy audit, you can also save money on the actual repairs.

With President Obama's recently approved American Recovery and Reinvestment Act of 2009, you can be reimbursed up to $6,500 for efficiency repairs. On top of that you can get an energy audit done on the cheap with a tax credit.

What Is an Energy Audit

Smart use of energy is a hot topic right now. Everyone from car producers to big-time companies have invested in using energy more efficiently. Have you? Taking small steps can help bring you closer to efficient energy use, and a good place to start is with an energy audit. An energy audit can tell you how you're using energy and how you can do it more efficiently. You can't start remedying the problem unless you know what it is. Services included in an energy audit often include an evaluation of all mechanical, electric and fuel-powered equipment.

The scope of the evaluation depends on not only the size of your property, but the depth you are looking for and the money you are willing to pay. It can take anywhere from one day to a month to complete an evaluation and write up a report on your energy use. Most evaluations include a walkthrough and an in-depth report on how you can save money by tweaking your equipment and how you use it.

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Why Evaluate Your Building?

When looking to purchase a commercial property, there are a lot of things to keep in mind. The safety of the people inside, costs and how efficient your building runs are just a few. All of these are important issues. But sometimes they are abstract, and it can be difficult to pinpoint how you, as a property owner, are doing in regards to these issues. A good way to help quantify where you're at in the process of safety, cost and efficiency is through evaluation.

Evaluations take many many forms. It can be through a building condition survey, physical needs assessment, Environmental Safety Assessment and more. Though it may not be required to complete all of the possible inspections and assessments out there, it's recommended that a potential commercial property owner take due diligence and make sure his or her building is in tip-top shape a) before he or she purchases it and more importantly b)before anyone steps inside.

Due Diligence and How It Relates To You

Buying and readying property can be a headache. There seems to be an endless checklist of to-dos: building condition surveys, ESAs, inspections, etc. and not very much time to actually do them. The precautionary steps that a business owner takes before and after purchasing a property often fall under the broad term of due diligence. This is a phrase often tossed around in the inspection world that means before you buy you should strive to confirm all facts before you invest.

Often encompassed under due diligence are environmental assessments. Due diligence is not just a concept that will ensure a purchaser a peaceful mind, it is also becoming more demanded by the people who dole out the money: banks. Banks want to see that you used a reputable firm when undergoing assessments, such as an ESA. If their prospective client is not fulfilling the necessary due diligence, they most likely will not invest in the company in the form of a loan.

Environmental Site Assessment

Along with a building condition survey, an Environmental Site Assessments is another step that you potentially have to undertake when purchasing real estate. Like other types of surveys and assessments, an ESA is a part of a buyer's responsibility to respect environmental due diligence. An ESA is typically conducted prior to purchasing or financing and determines potential or existing environmental liabilities. By conducting this assessment, the buyer can reduce his or her liability. An ESA can encompass one or two phases. The first phase focuses on the land and potential environmental issues. It can examine the potential for soil contamination, groundwater quality, surface water quality, inventory of hazardous materials kept on site, assessment of mold and mildew, etc. It never includes the collection of sample nor chemical analysis. If during the assessment an environmental issue arises, the company may have to continue onto phase two or three.

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Physical Needs Assesment

Like a building condition survey, getting a physical needs assessment is a wise move for any commercial building owner. Just like other property services, a PNA is another way to ensure that your property is up to date and in shape. A PNA will help building owners improve an existing property's aesthetics and building-code agreement. It can shed light on potential issues that might end up causing trouble in the long run. Depending on the type of PNA requested, a professional can just evaluate the exterior or common areas, or he or she could evaluate building components, deficiencies, regulations, structural systems, appliances and more. The process can include interviews, research, site investigation analysis and an in-depth report on the findings. The form a PNA takes can vary significantly from property to property, but the goal of of a PNA is to evaluate a property's physical condition and what it might need in the future.

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When Should You Get a Condition Survey?

A building condition survey can be useful at multiple steps in the ownership of a commercial space. If you're looking to buy a building, getting an assessment of the space prior to signing can give you a clear view of how much work and money will go into repairing and getting things up to code. It's always a good idea to have someone check it out before the defects liability period (DLP) expires. This is typically within 18 months of vacancy for residential and 12 months from the date of possession of commercial buildings. By doing it early on, your liability for repairs is lessened.

If you already own a building and are thinking about getting a condition survey, take a look around your space. Are there any defects like cracks, water seepage, issues with the foundation? Even small problems are worth checking out. Those often times are only the tip of the iceberg.

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A Brief Explanation of a Building Condition Survey

Buying property costs money. It's a huge investment that most people don't take lightly. Before making a large purchase of a commercial building, it's best to make sure the building is in tip top shape. A building condition survey will assess the condition of your building. It looks at the structure and safety and can also be used to asses your interior space, electricity, mechanical rooms and more. The information is gathered by a professional who then organizes it into a report that will tell you what needs improvement. Building condition surveys are a way to assess the potential costs of repairs, ensure your safety as well as others' safety and make sure that everything is up to code. Some have likened the process to a health checkup. A building condition survey is just that—a requisite screening for your building's health.

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Banks and Due Dilligence

Banks are stepping up the standards for due diligence on commercial properties. It is very important to use a reputable firm that is certified to do these reports and one that also follows all ASTM standards for phase i environmental reports.

Banks won't just dish out $ to anybody, especially if they are not taking appropriate precautions and doing the necessary due diligence required to put their money into a safe investment.

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Happy fourth of july!

More information on Building Leasing

As I said before in my last post...you have to get a commercial property inspection before purchasing it! This is one of the most important parts of buying a commercial building because for some reason, not everybody will disclose pertinent information to you (the buyer!!!).

There are a few questions you need to ask yourself before you buy a commercial building:

• Who will be using the building?
• What type of businesses do I want?
• What kinds of clients will they bring in/attract?
• What do I need to make sure they clients are happy, and thus my tenants?

But the most forgotten..."how do I protect the people that enter my building?"

Unfortunately, that's the most important question of the bunch. And not only is it usually forgotten, but it's almost alway misunderstood when it is remembered. You need to protect people's valuables and safety of course, but what about their health? If your building used to be a toxic waste dump don't you think there's something more that needs to be done to ensure life and liberty? If that is the case will you even want to buy the building?

THAT is why you need to get a building condition survey done!

Recent Property Assessment Conducted

In April of 2009, a full property assessment was completed on a building for lease in omaha ne.  The Building, called "The Millennium Plaza", was constructed in 2003 and in an effort to maximize the safety of people working inside the building the owner decided to perform a full evaluation.  What an evaluation such as this can provide an owner with is a wealth of helpful information from age of components, life remaining on major appliances, and efficiency of HVAC systems.  Why this is helpful is obvious, by knowing how much longer your components have you can better prepare yourself for future problems and replacements.  This leads me to my next point...another good idea for property owners, be it commercial or multi-family residential, is a physical needs assessment.  The Millennium Plaza would also benefit from such an assessment, which can give even deeper information such as maintenance schedules, efficiency leaks, etc...

All in all, these reports are IMPORTANT for leading the way into the next century.  Efficiency is going to be a huge topic of concern for new buildings going up, and those that don't heed this warning will be paying huge when the time comes to upgrade these outdated systems!!