Alpine January - February 2011 newsltter

Hinda Miller

JANUARY - FEBRUARY 2011 Issue IN THIS ISSUE

ENERGY SOLUTIONS

BIG BOX RETAILER CASE STUDY

SYNOPSIS OF THE BIG BOX RETAILER CASE STUDY

AN OUNCE OF PREVENTION IS WORTH...

FALLING RENTS PROMPT 2011 RETAIL GROWTH

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During April 2010 a major big box retailer took part in a case study of the benefits of recommissioning its HVAC systems at seven of its Florida locations (approximately 25% of its Florida operations). The study demonstrated that the retailer reduced the stores' carbon footprint by using less electricity. This also lowered utility expenses. By bringing the HVAC units to optimum performance, the frequency of service calls was reduced while extending the life cycle of the HVAC units. Increased sales-floor comfort levels for the retail customer were also achieved.

A Pennsylvania based HVAC service, repair and maintenance company, has a significant case study underway with a major big box retailer that is creating a pathway to sustainability for the retailer through recommissioning rooftop HVAC units. The recommissioning has so far, according to the case study, provided very positive results.

At the core of the case study is the fact that a typical big box retailer often times has a huge carbon footprint. This in turn means such retailers are using excessive amounts of energy based on a number of factors including: geographic location (i.e., retailers with locations in high heat areas), malfunctioning or inoperable rooftop HVAC units, or improperly maintained systems. Increasingly, big box retailers are now investigating ways to reduce their carbon footprint and energy usage while qualifying for rebates from utility companies.

Learn how the retailer received a significant and 1

documented savings by clicking here.

AN OUNCE OF PREVENTION IS WORTH...

A Pound of HVAC Cure The old saying "an ounce of prevention is worth a pound of cure" is absolutely true when it comes to preventative HVAC maintenance. The lack of a preventative maintenance program for HVAC can lead to clogged filters, less than optimum operating systems, and ultimately the replacement of equipment that would have been working fine if it had been maintained and preventative measure taken to extend the equipment's lifecycle.

Think of a preventive HVAC maintenance program the same way as auto experts say you should maintain your automobile. If you don't change your engine oil on a regular basis or heed the warnings of a "check engine" light, odds are you'll end up with costly repairs that could have been prevented.

The same is true for a retail operation's HVAC system. Preventative HVAC maintenance is not expensive compared to what a retailer will spend if the heating and air system breaks down on a regular basis, performs at less than Proper optimum efficiency or ultimately preventative fails. According to Mark Barraclough, maintenance can president, Alpine Mechanical Services, prolong the life "The average HVAC system has a life cycle of expectancy of 15 years. Properly commercial HVAC maintained, you won't have to replace equipment. the unit until the end of its life cycle.

But, let's say you don't maintain the unit properly. You'll have ongoing repairs and or higher operating expenses associated with a poorly performing unit. Such extra expenses really do add up when you defer regular maintenance."

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AS RETAIL RENT GOES DOWN...PREDICTIONS GO UP!

Industry Analysts Predict Retail 2011 Growth The CoStar Group, one of the nation's leading providers of research and analysis for commercial real estate sals and property investors in the United States and the United Kingdom is featured in the latest issue of Retail Traffic News online with some rosy predictions for retail growth 2011.

CoStar is reporting that a decline in retail rents since the start 2

of the recession is prompting a number of retailers to report that they plan "to step up store openings in the next couple of years to take advantage of the more favorable pricing."

The CoStar Group analysis says "retailers have no shortage of availabilities in their choice of centers as retail vacancy rates remain in the high teens. And tenants are wielding their upper hand by playing one landlord against another to obtain favorable terms. Even centers that have avoided the growing rash of vacancies may be harvesting fewer dollars in rents, as more retail tenants press landlords for concessions and as more leases are rolling to lower market rates.

The published report says this is particularly true for malls and lifestyle centers where landlords have conceded the most ground. "Cumulative rent losses have run 13.6% and 12.1% for malls and lifestyle centers respectively through the third quarter of 2010."

To Read the Rest of This Report Click Here

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