NYS Sustainable Corporation
Historically, and throughout the life of new evolution within the technology sector, there has been skepticism, criticism, and the sheer denial to what technology could produce, uncover and resolve. Today, we have seen technology uncover superior communications, massive production development efficiencies and resolve timely fundamental issues in every industry across the business spectrum.
In the same vein, the commercial real estate community has begun to integrate such technologies in the form of conservation measures and power procurement via highly sophisticated mechanisms to not only self-sustain, conserve; but also and our favorite here at NYS Sustainable Corp., bolster perpetual revenue returns.
For over the past decade, the commercial real estate industry throughout New York has slowly, but surely, become keenly interested in what and how a Green-Tech integration could conserve on power related costs, increase corporate social responsibility initiatives and position commercial real estate portfolios towards the capture of NexGen equity. This integration is effectively happening at a record pace as Green-Tech entrepreneurs push and deploy new business’ clean tech jobs, and bridge economic solutions to not only combat emissions, but educate and integrate turn key resolve to the ever-increasing need to grow the renewable energy sector, -- respectively commercial real estate property Green-Tech integration.
Commercial real estate industry professionals, whether direct representation or direct ownership, are highly and creatively disciplined on the crafting of leasing and purchase investments; as well as the optimizing of real property revenue supplementation. So much so, every day there are a growing number of commercial real estate professionals, entities, affiliations and startups engaging within the Green-Tech market to further collaborations on multiple fronts to procure solutions across this dynamic renewable cleantech industry. Trailblazing this Green-Tech integration is one of the most prominent commercial real estate institutions, Brookfield. In 2017, Brookfield subsidiary, Brookfield Renewable Partners, and institutional partners acquired TerraForm Global Inc. for $750 million. TerraForm Global currently consists of over 17,400 Mega Watts (MW) of capacity alongside 876 generating facilities throughout North America, South America, Europe, and Asia. From a point of perspective - 17,000 MW is equivalent to supplying power to over 17 million homes or 5 billion s/f of commercial space.
These progressive commercial industry practices have been bridging conservation and investment measures in uniquely structured procurement deals. Although this Green-Tech knowledge is making its way through the industry, there is still skepticism and the fear of the unknown in this highly relationship-driven industry. A large percentage of commercial real estate asset owners are unaware of how invaluable a Green-Tech integration or mere education can be. My corporations business model is based strictly on the delivery of this intelligence, and frankly, navigating the processes is sometimes highly complex. But a Green-Tech implementation or cross pollination of community power distribution generation (CDG) is the way of tomorrow not because its a nice to do anymore, but rather a have to do. Such commercial/green power deals have been proven for over a decade, leading CRE asset owners to capture supplemental income, the monetization of renewable clean energy-related tax credits, grants, property abatements and inadvertantly, the increase of property valuations.
Some of the most commercial real estate renewable influencers are Fuel Cell, Solar, and CHP (Combined Heat and Power), much which, have contributed to not only effectively offsetting power costs throughout all the CRE property types inclusive of investment REITS. The commercial real estate investment sector have begun integration practices where they are cross-pollinating Green-Tech investment by deploying renewable projects and selling their procured “Energy Credits” to commercial end users. Such a deal representative of this type of collaboration is; the innovative project, originated in 2015 and developed by EnterSolar, private green energy investors, and supported by funding from governor Andrew Cuomo’s NY-Sun initiative.
This collaboration consisted of a 1,500 kW (1.5 MW) solar installation across three (3) adjacent facilities at the JFK Airport Park, Queens. The multi-building system was considered one of the largest rooftop solar array system in Queens and is among one of the largest rooftop solar projects in New York State, with over 5,500 solar panels. The power generated was converted to energy credits, and applied to Bloomberg’s offices in New York City. A proven model and case study stemming four years ago, but believe it or not, there is still a fear to many in the industry on the efficacy of such a Green-Tech integration within the commercial real estate business model.
NYSSC supports and educates on such deals within the Green-Tech integration model. Even after such mammoth deals as previously mentioned paved a successfully outlined green road. Solutions matter.
Nancy Colella is a principal at NYS Sustainable Corporation, Oyster Bay, N.Y.
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