Of course, the extent of renovation depends on the budget for each property, but one thing remains the same – plan ahead. Switching to drought tolerant material can be an expensive endeavor, even when incentives are available. But there are incentives than can prove advantageous, which vary by city and sometime include multiyear paybacks. Prior planning also ensures the tenant and property owners are equipping themselves for the future, as the cost of water will only increase over time, which will affect a building’s expenses, value and bottom-line in the long run. Putting a plan in motion to identify easy reductions and work toward reducing turf areas will be imperative for future compliance. When the consumption is reduced, this leads to a lower water bill, which typically benefits the tenant and has the potential to make the asset look more appealing, since the common area maintenance (CAM) expenses would be less. Tenants are always concerned with these CAM expenses, and if th e asset is cheaper due to lower expenses, everyone looks good in the end. In office and full service gross leases, the owners take advantage of lower expenses because many pay all the CAM expenses for tenants. Most industrial leases are NET, and thus pass the property expenses directly to the tenants – in which case the lower the costs, the better the asset looks.
ABOUT UNIRE REAL ESTATE GROUP
Unire Real Estate Group was formed to deliver a higher standard of asset services to owners and tenants of institutional-quality commercial real estate. While taking a strategic view of each client’s investment, the organization is uniquely designed to provide quality daily service. Unire Group is currently responsible for management of more than 35-million square feet of industrial and office properties. Unire Group partners with clients to develop and implement comprehensive programs that achieve specific objectives, purposefully limiting assignments to those where the team’s experience directly benefits the client. The Unire Group manages properties throughout the six-county Southern California region, as well as the Greater San Francisco Bay area, and Las Vegas, Nevada. Investors that work with Unire are more than clients – they are strategic partners.