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2010 was a big year for solar power in the U.S. And thanks in part to two recent federal legislative actions, 2011 is shaping up as an even bigger year. One of those legislative actions was part of the tax deal that famously extended Bush-era tax credits and unemployment benefits. Embedded in the bill was a provision allowing companies to depreciate 100 percent of the cost of renewable energy in the first year. Congress also extended Section 1603 of ARRA for another year, which means property owners can continue to get a 30 percent Treasury Grant for solar installations. The…

LEED Certification and the U.S. Green Building Council (USGBC) have been discussed lately, with an attempt to discredit the USGBC and the effect certification has on reducing energy consumption. USGBC is concerned about many things from sustainable purchases, to the indoor and outdoor environment to energy conservation. Comparisons to EPA’s Energy Star were made but Energy Star is a completely different tool. Energy Star provides you with a snap shot of how your building is performing compared to other buildings across the nation. Though EPA has been making great strides, this tool has many flaws, including how it calculates source…

  I’ve been on a perpetual road trip for a number of months – well, maybe more than a few years. Living across the planet in these cities – from Tokyo, Hong Kong, Shanghai, New York, London, Amsterdam, Miami, Seoul – there are interesting parallels and starkly constrasting differences. I’ve been to new developments and energized retail stores,  seen global power brands and creative local gathering places. The global trends in the development of this supercity network are powerful and fascinating, and visible on the streets. I was exposed to the project 19.20.21 a few years ago at my first TED conference…

A recurring challenge to prevent over-assessment of commercial property is to separate true real estate value from business value. True real estate value is assessable for property taxation, while business value is not.   Commercial property owners who conduct businesses on their property must be vigilant to ensure that the assessor is not capturing the value of their business operations in the guise of assessing their real estate. This can occur if the assessor assesses the property under an income approach and includes the owner’s business income in his or her computations, claiming that this income is attributable to the real…

By: Mario Mexia With the reemergence of nearly a dozen CMBS lenders, competition is growing amongst capital providers to put their money to work.  Interest rates are at all-time lows and underwriting parameters have begun to loosen.  However, few investors have been able to take advantage of the improving capital markets. Stymied by the limited availability of stabilized industrial product on the market, investors are growing feverish, combing through Southern California markets for “off market” opportunities to place their capital.  Yet, many of these investors are significant owners as well, further perpetuating the unique dynamic of the market. The increased…

Assessors in many jurisdictions value hotels based upon comparable sales of similar properties on a per-room basis, resulting in overstated taxable value and unfair tax bills.   In valuing a hotel on a per-room basis, assessors turn a blind eye to the personal property within those rooms. Items like the bed, television, chairs and other personal items are reflected in sales prices, but are not part of the real estate.  Not limited to guest rooms, personal property extends to dining room furniture, computers, lobby furniture and the like. In many jurisdictions, these items are separately assessed as personal property. When personal…

On October 22, 2004, the Department of Buildings by enacting Local Law 26/04 amended Local Law 5/73. Local Law 26/04 added sections 27-228.5(b) and 27-929.1 to the 1968 Building Code (which has been superseded by the 2008 Construction Code). The law requires all commercial office buildings 100 feet or more in height which are not equipped with sprinklers (the building code had allowed for what is called “compartmentalization” which would no longer be acceptable) to be fully equipped with sprinkers by July 1, 2019. This law, like it’s sister law of Local Law 26 (installation of photoluminescent markings along egress…