Archive for May, 2012

Will Tech End The “Split Incentive”?

The “Split Incentive”, or as I have also heard it called, the “Split Incentive Disincentive”, is going to go away, and commercial real estate professionals had better be prepared for it. Here’s the “Split Incentive” problem in a nutshell: Building owners construct or buy a commercial building which they net lease to tenants, who pay the operating expenses, maintenance, insurance, etc., or in the context of a multiple tenant building, pay a proportionate share of such costs, typically based on rentable square footage. By paying only a proportionate share of, say, energy costs not based on actual use, the tenant has no incentive to save on energy costs by installing more energy efficient lighting and equipment. And, if the owner decides to incur the expense of upgrading its building by adding “green” improvements, it can’t recover that expense from its tenants, even if the “green” improvements result in energy savings to all the tenants (for more on the “Split Incentive”, check out my past article.

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Creative Office Sustainability?

Like many of you out there, I’m trying my best to have a sustainability consciousness around the office.  I put all my junk mail, opened envelopes, printed cover sheets and read magazines in the paper recycling bin.  I try not to print out documents just to review them, although I must confess that I lose that battle frequently.  I brought my biking water bottle from home so I can reduce the number of times I throw away a plastic cup each day.  Food trash goes in the food trash can.  Since my office has floor to ceiling windows, I can turn off the lights in my office for a good part of the day (of course my fellow co-workers think I must be sick!).  But last week, I received a package in the U.S. mail that showed me I am not being very creative in finding new ways to be sustainable.

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