“Health is the slowest possible rate at which one can die.” I try to keep these kinds of thought in mind as my 53d birthday approaches this week and I pound out my morning runs and drink my green smoothies.
Speaking of green and living a long time, people are becoming more “green aware” in the commercial real estate biz. We hear more about green buildings but I expect you will start seeing more “green language” in leases. Courtesy of attorney Andrew Ouvrier here is a list of ideas for making leases green;
- Utilities – a green lease should require the tenant to provide electrical usage data.
- Lighting – green leases should require use of high efficiency lighting and motion sensors.
- Common Area Expense – a green lease should allow for the cost of upgrading for energy efficiency and pass through to the tenants.
- Recycling – should include specifics of handling tenant waste and also waste as well as construction or demolition debris.
- Construction – the build out phase presents an opportunity to incorporate energy saving features.
- Rules & Regulations – should restrict the use of items that affect temperatures or are energy hogs. Should require landlord approval.
- Use – uses should not interfere with sustainability practices. Air quality issues should also be addressed.
- Cleaning – cleaning practices should call out sustainable practices. Use of environmentally friendly cleaners.
- Remedies – Finally, what happens in the event one of the parties fails to meet the expectations set forth in the lease?
Now there is another type of green lease that is trending up as well and that revolves around recreational marijuana. With the likelihood of a 2016 California ballot initiative, we may see the same green boom as Colorado and Washington. Where over you stand morally, politically or health wise, legalized marijuana creates a boom for commercial real estate. Warehouse space will fuel the most pressure with the need for growing and distributor facilities. Retail will also see a bump for outlets and stores. Less space and higher rents will give new meaning to “a growing market.”
The bevy of recent economic data seems to fall into two camps; one suggests that the economy is poised to break out of the slow growth slumber we have been in and the other signaling that our cautious, slow expansion will continue to reign.
The broad measures of the commercial real estate market used by CoStar, measure aggregate pricing for commercial property. )Repeat Sales Indices – CCRSI). Both indexes are up 11.4% and 11.7% respectively year over year reflecting a broad improvement in market fundamentals.
When I think of fundamentals (and old guys who rule!), I think of Warren Buffet. I thought I would share ten popular Buffet quotes that can help all of us in our commerical real estate lives;
- “Rule #1: Never lose money.”
- “Rule #2: Never forget rule #1.”
- “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
- “It is far better to buy a wonderful investment at a fair price than a fair investment at a wonderful price.”
- “We simply attempt to be fearful when others are greedy and be greedy.”
- “Risk comes from not knowing what you’re doing.”
- “In the business world, the rear view mirror is always clearer than the windshield.”
- “Our favorite holding period is forever.”
- “Some one is sitting in the shade today because someone planted a tree a long time ago.”
- “Price is what you pay, value is what you get.”
Well as I tick off one more year and check my lists of things to do, I hope you enjoy Dave Barry’s list of things that it took him 50 years to learn…
16 Things that took me 50 Years to Learn
- You will never find anybody who can give you a clear and compelling reason why we observe daylight savings time.
- You should never say anything to a woman that even remotely suggests you think she’s pregnant unless you can see an actual baby emerging from her at that moment.
- The most powerful force in the universe is gossip.
- The one thing that unites all human beings, regardless of age, gender, religion, economic status or ethnic background is that, deep down inside we ALL believe that we are above-average drivers.
- There comes a time when you should stop expecting other people to make a big deal about your birthday. That time is age 11.
- There is a very fine line between “hobby” and “mental illness.”
- People who want to share their religious views with you almost never want you to share yours with them.
- If you had to identify, in one work, the reason why the human race has not achieved, and never will achieve, its full potential, that would be “meetings.”
- The main accomplishment of almost all organized protests is to annoy people who are not in them.
- If there really is a God who created the entire universe with all of its glories, and He decides to deliver a message to humanity, He WILL NOT use, as His messenger, a person on cable TV with a bad hairstyle.
- You should not confuse your career with your life.
- A person who is nice to you, but rude to the waiter, is not a nice person.
- No matter what happens, somebody will find a way to take it too seriously.
- When trouble arises and things look bad, there is always one individual who perceives a solution and is willing to take command. Very often, that individual is crazy.
- Your friends love you, anyway.
- Nobody cares if you can’t dance well. Just get up and dance.
