02/01/2009

Is There a Silver Lining?

Editor Jana J. Madsen looks for a silver lining during the economic downturn

 

Jana J. Madsen,
Editor

There's no doubt that the situation is bleak. I've even heard readers describe the current economic climate and its impact on the real estate market as a train wreck. Tight credit policies, decreasing market value, and tenants defaulting on rent are big concerns. The economic downtown and its effects on the industry have caused development projects to stall, operating budgets to be slashed, maintenance to be deferred (at the risk of system failure), and companies to begin layoffs. In all this gloom and doom, it can be difficult to find a silver lining.

Not surprisingly, though, facilities professionals have taken proactive measures, and are lobbying for strong changes that could have lasting, long-term benefits. The New York Times reported at the end of the December that Herndon, VA-based NAIOP-the Commercial Real Estate Development Association, in conjunction with the Washington, D.C.-based Real Estate Roundtable, is pushing for changes to tax rules that would make it easier to restructure loans.

Companies and institutions have already positioned themselves to make reductions and contain expense. They're considering alternative energy, investigating the ROI of energy-efficient equipment, and exploring how conservation can improve the bottom line. Reducing energy as a means to cut operating costs is better for the environment and can serve as a catalyst for permanent load shedding.

There's a renewed importance being placed on customer service, too. In its Economic Downturn: Cost Saving Opportunities Increasing Cash Flow whitepaper, Santa Ana, CA-based Grubb & Ellis Co. identifies creative ways to help lower property operating expenses, as well as advice on tenant improvement and leasing programs. According to the whitepaper: "Managers need to make sure that tenants are important and that their opinion matters in maintenance issues and the general appearance of the property. Tenants need to be spoken to often."

These steps are more than a coping mechanism. And, despite the fact that they're the consequence of a recession, the positive impact they'll have on the industry is bound to last long after an economic recovery.

 


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Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com

 
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