Craig Higdon has over 14 years experience in financing commercial loans, small business loans, construction loans, and land loans. He owns Excelsion Mortgage, a commercial mortgage brokerage offering real estate investors a wide range of resources to help them in their investment activities. Coupled with the economic climate and its recent effects on Commercial Real Estate, “going green” is just one of the choices available in an effort to cut costs in building and maintaining office buildings, retail stores, manufacturing facilities and malls. There can be significant savings in utility costs and there are many choices in the marketplace with regards to heating and cooling.
Now, new thin solar films are available that cover windows of office buildings all around the country. They reduce the temperature inside the buildings as well as cut cooling costs. Earlier versions of solar film reduced heat getting through but the tint created a darker environment, more noticeable in northern parts of the country.
This new thin solar film is placed over the building’s glass, is crystal clear but cuts ultraviolet and infrared light while allowing the visible spectrum through. The reflection reduces 55% of the sun’s heat and increases the comfort of indoor environments. It is so clear it promotes natural light and reduces the need for indoor lighting. Tenants notice a significant heat increase in areas that are not filmed as opposed to those that have been covered.
The clarity of the new film allows in maximum light and decreases energy use. Some tenants have reported that they did not need to put any lighting in perimeter offices.
New technology has also allowed some films to not only block light, but actually produce energy. These new films contain ultra-thin photovoltaic’s which generate electricity during daytime hours. Depending on the geographic location of the building, the payback on this investment can range from six months to three years.
Since the inception of the October 2008 Emergency Economic Stabilization Act residential owners who install energy efficient improvements in 2009 can qualify for special tax credits, helping to defray the cost of installation.
However, interest within the Commercial Real Estate community has heightened with the recent spikes in the price of oil and decreases in average rents. Commercial property owners face greater economic challenges because of property size, but can also potentially get significant State and Federal tax deductions. Go to www.dsireusa.org for more information on tax incentives in your state.