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Humidity Control.
Humidity generally refers to the amount of moisture contained in air in the form of gas or vapor. The amount of moisture that air can hold depends upon its temperature. As air gets warmer, it can hold increasing amounts of moisture as vapor. Saturated air contains the maximum volume of moisture vapor possible for a given temperature. Relative humidity is the measure used to define humidity; it is defined as the ratio of the volume of moisture in the air to the maximum volume of moisture that the air can hold at its temperature. It is always expressed as a percent. A relative humidity of 100 percent means that the air is saturated.
As air cools, its relative humidity rises, because the maximum volume of moisture that the air can hold lessens. For any specific mix of moisture vapor and air volume, the temperature at which the relative humidity is 100 percent is known as the dew point. When the temperature drops below the dew point, moisture vapor condenses into water. In buildings, condensation most frequently occurs on cold surfaces within interior spaces and within exterior wall systems. The air temperature adjacent to the cold surface is cooled and moisture vapor is deposited as water droplets. This occurs on metal window frames that lack thermal breaks and upon and within walls which lack sufficient insulation. Within interior spaces, the formation of condensation is primarily a nuisance. Where it is visible and when observed, reducing the relative humidity through mechanical means (through properly designed and operated heating, ventilating and air conditioning systems) can control it.
For optimum health and comfort, relative humidity should be maintained between 40 and 60 percent. To achieve this during the winter heating months, moisture must be added to indoor air that has been made drier by the addition of heat. Moisture can be added to supply air streams by atomizing humidifiers, and evaporative coolers that create cool mists or by steam humidifiers. Cool mists, when not optimally controlled, can promote the growth of molds, mildew and bacteria within ductwork; steam is preferred to prevent indoor air quality problems. The best systems provide "dry steam", with a fine, even discharge that doesn't spit and sputter. The newest equipment provides improved designs that simplify periodic removal of the minerals that build up on traditional steam humidifiers. They incorporate disposable steam-generating canisters that trap and collect the minerals.
During the summer cooling months, conventional HVAC units cool air and remove moisture. In doing this, the temperature of air passing over a cooling coil is reduced to a dew point equal to or below that of the indoor air. This reduces the total volume of moisture in the air, but the relative humidity is increased typically to about 95 percent. Such conditions of high relative humidity are conducive to and support microbial growth that can impair indoor air quality. This occurs within poorly insulated ductwork and on or near the surfaces of supply grilles and registers.
If ductwork insulation is inadequate, conditions supportive of microbial growth can be inhibited by either adding insulation or by overcooling the supply air and then slightly re-heating it. This wastes energy but will reduce humidity levels and can be used to eliminate condensation problems. This strategy is particularly helpful as a short-term measure to quickly arrest conditions supportive of microbial growth, until cost-effective, permanent solutions can be formulated.
Cold supply air can reduce the temperature of a supply grille to below the dew point of the indoor air. When this occurs, condensate can form on the exposed surfaces of the grille. This condition is evident in the discoloration frequently observed on and around ceiling supply grilles. Dirty filters, as is most often suggested, do not always cause this discoloration. Grilles with large unwashed (not exposed to sufficient air flow) surface areas and those with high discharge velocity increase the potential for the formation of condensate. Flush-mounted ceiling grilles that discharge in one direction contain large unwashed surfaces and usually have high discharge velocities. The solution is to substitute plastic grilles; these have newer designs that provide superior air delivery characteristics and lower thermal conductivity. Grille manufacturers are cognizant of this problem and are the best source of help (Trent, 1997).
Swimming Pool Enclosures
Corrosion within pool enclosures is a major risk. Heated pools, hot tubs and water treatment chemicals create a highly aggressive, corrosive environment. Heating water for a typical 1,500-square-foot suburban hotel indoor pool will result in the evaporation of over 100 gallons of moisture each day. This creates huge issues regarding proper humidity control and the use of corrosion resistant construction.
Pool enclosures with light-gauge open-steel framing (i.e., roof joist systems) must be galvanized and painted with epoxy paint. Without this protection, structural strength will likely be lost to corrosion, and replacement will be required in approximately ten years. The following items need to be observed to avoid deterioration and capital expenditure requirements:
Insulation and Vapor Barrier. This is the most critical item. Moisture must be prevented from penetrating concealed insulation and structural members such as wall studs. A vapor barrier must be installed directly behind the interior finish layer. The barrier must be continuous and sealed at all seams and penetrations, including electrical switches and outlets, and door and window frames. The best protection is provided by high performance, cross-laminated polyethylene sheeting (with a perm rate of 0.1 or less) or foil-faced polystyrene insulation. Foil-backed sheet-rock will not provide adequate protection because the joints cannot be sealed. Sprayed-on polyurethane foam is not a vapor barrier.
Condensation Control. Water will condense upon surfaces as they cool, leading to deterioration. Problems are created by the following: steel stud walls (the studs convey heat from the wall surface quickly); single-pane windows and skylights; light fixtures exposed to attics or uninsulated ceiling vents; and lack of insulation inside interior walls that are shared with other building functions. Humidity must be controlled by a dehumidification system. A heat pump dehumidifier provides the best control, which will remove humidity and heat the pool water.
Air Distribution. The enclosure should be maintained under negative pressure to keep humidity from migrating to other areas of the building. Dry air blowing over water increases evaporation. Warm moist air must be removed at the highest ceiling level (avoid even the smallest dead end) where it has risen. Dry air supplied across windows will reduce condensation. Shutting off dehumidification equipment in the summer and opening windows and doors should be avoided in all but the driest of weather (outdoor humidity levels should be below 55 percent relative humidity). Remember, the humidity generated by evaporation from the pool contains corrosive chlorine.
Corrosion Resistant Materials of Construction. Steel surfaces of all sorts, even framing for signs, light fixtures and particularly air distribution grills and duct will corrode. Use plastics, aluminum and galvanized steel when steel is required.
Electrical Consumption Issues
In the early nineteen nineties, rental rates and occupancies had declined in most U.S. commercial real estate markets. Consequently, owners focused on reducing operating costs without adversely affecting quality of service. With utility costs being the largest operating expenditure in most buildings, many focused upon aggressive energy management strategies to contain costs. In today's markets, with increased occupancy levels and higher rental rates, energy management and consumption in most buildings have become secondary considerations (Angerame, 1998).
With the deregulation of the electric utility industry, electricity has become a commodity, and prices are based upon supply and demand rather than average system costs. This can decrease electricity rates by as much as 20 percent or more, if owners are prepared to deal with the electricity providers who come knocking.
Owners who are unprepared to negotiate the "best price" for electricity may find themselves in a competitive disadvantage when negotiating lease roll-overs where competitors' efforts in this area out-distance their own. Most leases permit owners to pass along to the tenant increases in electric cost but have no obligation to give to the tenant any benefit of any decreases in those same costs. In the future, owners who can offer participation in electrical cost savings will be ahead of the competition. In fact, with deregulation, it is likely that in the future tenants will be actively looking for properties that offer savings and even some level of influence on the owner’s selection of an electric utility provider. In this day and age, anyone who depends upon escalation clauses as the primary strategy to manage electricity charges is extremely shortsighted. Those who simply pass costs onto the tenants in lieu of effective management will likely lose those tenants.
Few owners are prepared to negotiate the "best price." To do this, they must begin by understanding their buildings' energy consumption patterns. This is the necessary first step in recognizing whether or not an energy provider is offering the right rate schedule. Unfortunately, most owners and managers knowledge of electricity usage is limited to what they read on their electric bill. They know their total electrical usage costs and can tell you what they paid on a per-square-foot basis. Most even understand the intricacies of consumption rate charges and demand charges. What they can't tell you is how and where the power is being used over time. And to sort through the barrage of solicitations and promotions from energy providers, one needs to be armed with answers to questions like…"What contributes most to your demand?"…"What part of the overall totals are common area costs?"
The key to understanding energy consumption patterns begins with appropriate metering. With thoughtful metering and sub-metering based upon an accurate building energy use survey, precise data can be obtained regarding a building's overall energy use. This data is needed to make the right decisions in this confusing and potentially dangerous time. "Best price" does not necessarily mean "lowest price." Signing on to an attractive long-term contract without fully understanding your buildings' long-term power needs can backfire when additional power requirements exceed those that have been contracted. The potential impact of penalty clauses, insufficient power, and even a diminishing of power quality when demand exceeds contractual parameters should always be factored into an analysis of the overall costs.
To be successful in managing the supply-side costs in free market pricing, owners must be ever watchful of the demand side under their control. If they have established the metering needed for accurate tracking of power usage to get the "best price," they will find themselves in an ideal position. With their buildings' energy spreadsheets at their fingertips, they can create realistic and cost-effective plans for reducing energy consumption while satisfying tenant needs. Reducing electrical consumption costs adds value to the building and makes leasing easier. For each annual operating dollar saved in a market with a ten percent capitalization rate, the market value of a property is increased by approximately ten dollars!
Electrical System Obsolescence Issues
With the advent of personal computers and data centers, old and obsolete electrical systems are no longer acceptable to modern sophisticated tenants. Reliability and power quality are of utmost importance to tenants that rely upon communication and data storage systems. When well maintained, older, obsolete equipment can remain serviceable under the originally intended service conditions. Nonetheless, such systems represent a significant replacement dollar risk needed to maintain the non-interruptabilty standards required of most modern tenant business support systems.
Providing uninterrupted power to the modern office workplace requires wiring circuits (C circuits) for computers that are separate from all other utilities (L circuits). C circuits should limit branch circuits to four outlet boxes and for printers one outlet to a branch circuit. Ideally for flexibility and accessibility, an individual modern workstation (cubicle) should be provided with eight outlets and four Category 5 UTP wall jacks. This will allow for both modem and video capability and allow each cubicle to operate as an open workstation as as a tenant's staff grows. Each group of six work stations should ideally have five 20 Amp branch circuits. Two are for non-computer use, two for computers, and one for two laser printers. This arrangement will limit harmonic disturbance, a problem caused within the power supply by electronic equipment.
Satisfying the above needs requires overall building power capacities that fall at the higher ranges of acceptability and proper grounding to protect the systems in use. It is wise to consider that in the not-to-distant future, older electrical systems will require additional capacity or replacement. This is particularly likely for properties that cater to high tech tenants like office buildings, full-service hotels and retail properties with tenants linked to national or regional communication networks. Electrical capacity issues for these and other property types are discussed in Chapter 5.
THE OUTSTANDING BENEFITS AVAILABLE FROM GUARANTEED ENERGY SAVING AGREEMENTS FOR COMMERCIAL REAL ESTATE PROPERTIES
Owners of commercial real estate have an historic opportunity to increase the market value of their properties and generate a steady stream of cash-in-hand at absolutely no up-front cost to themselves.
Introduction
Guaranteed energy saving agreements provide commercial property owners and managers with the means to increase cash flow – right now – at absolutely no cost. This is achieved by blending guaranteed energy savings with a financing opportunity in a manner that leverages a property’s assets. The current historically favorable opportunities offered to energy users make this possible. Those opportunities include the deregulation of the power industry, the financial incentives offered by utility sponsored demand-side management programs and the new advances in high efficiency replacement equipment and sophisticated tools that can elevate the management of power at the property to a veritable art form.
Aggressive power management strategies that leave few stones unturned provide tremendous benefit to owners and tenants. The implementation of a comprehensive program by an experienced power management strategist will often generate savings in the range of 15 to 35 percent or more on a typical electric bill. This most often exceeds costs necessary for the modernization of comfort conditioning, lighting and other infrastructure components. Additional savings are generated that can be applied toward increasing cash flow, performing deferred maintenance or other capital or tenant improvement projects – or to increase competitive advantage in attracting new tenants.
Whether tenants pay directly for power consumption or if costs get rolled into the lease rate, attention to consumption efficiencies by management always improves a property's competitive advantage. The beauty of a properly structured energy savings agreement is that the gains are effectively free. The returns from a program are typically so great that anyone not taking advantage of the current historically favorable opportunities offered to energy users will likely place the properties they manage at a competitive disadvantage. Understanding the issues and embracing winning power management strategies have become necessities today, as businesses and tenants are increasingly cost conscious.
If you are an owner or manager of commercial real estate, you cannot afford to miss this opportunity. If you discovered that for the same dollars that you now spend every month on electricity you could —
- Pay to modernize building infrastructure mechanical, electrical, and lighting components to your specifications,
- Install new or upgrade to state-of-the-art energy management controls,
- Pay your entire monthly electrical bill, and
- Have a substantial percentage of your current electrical billing cost left over for you to use as you see fit,
- Plus obtain a written performance guarantee that assures the above results, or someone else pays the difference, and
- Not need to delegate your control of infrastructure equipment selection and operations
— would you be interested? This is exactly what you can expect to achieve from a favorably structured Guaranteed Energy Saving Agreement. Furthermore, this all can be achieved at absolutely no up-front cost to you.
By saying that there is "no up-front cost to you," I mean that if you implement a properly structured program, your resultant monthly payments for everything (i.e., items 1 through 3, above) can likely be substantially less than what you currently pay monthly for electricity. This will result in increased cash flow (item 4 above). There should be no other costs to you, either up front or otherwise – no hidden costs. The monthly savings that are generated should cover all program costs.
Assuming that you are not a novice to energy saving techniques, you are probably wondering, "How can this be achieved?" The answer is, "This is made possible by the current historically favorable opportunities offered to energy users." The opportunities arise from the deregulation of the power industry, the financial incentives offered by utility-sponsored demand-side management (standard offer efficiency programs), and the new advances in high efficiency replacement equipment and sophisticated tools that can elevate the management of power at the property to a veritable art form. These opportunities – when coupled with aggressive power management strategies, performance guarantees and financing – can leverage your assets to achieve maximum savings.
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