Happy New Year to all! Are you ready for 2014?
With 2013 completed, the industry is looking forward to increased momentum in 2014. Along with the New Year came two new and very big requirements for California:
First, Title 24 revisions have been strengthened to drive more efficiency and require the implementation of additional energy efficient technology as part of new construction of capital upgrades. Additionally, ADA requirements under the same provision have been increased. Although these revised standards can be viewed as forward progress, they will have an impact on the bottom line and will be a factor when analyzing new deals.
Second, AB1103 went into effect on January 1st and requires operators to track the utility consumption of any commercial building over 10,000 square feet. Currently there is a disconnect between the reporting requirements and many of the utility companies that are working feverously to figure out how to comply with the new requirement. Although the disclosure date has been pushed to mid-year, benchmarking your building’s energy use is now in effect. Management firms should have already established Energy Star/Portfolio Manager accounts for their properties as part of their compliance efforts.
While you focus on your 2014 resolutions, RiverRock will assist you in understanding and implementing these changes.