Sustainable design is nothing new. It has been a focus of attention since the 1990s. However, it was not until more recently that environmental concerns became top of mind for investors.
As millennial investors continue to look for new opportunities, they are increasingly drawn toward sustainable real estate development projects. Meanwhile, many experienced investors have also realized the monetary and societal benefits of backing these types of projects.
Commercial real estate development often incorporates green technology to reduce a building’s environmental footprint. Designers, developers, builders and investors who are looking to make a difference in their local communities recognize that this technology can help drive change.
Investing in commercial real estate development projects that use green technology allows you to build your yield in a way that better supports the community and the world we live in.
Green technology, as defined by Oxford Languages, is “any technology whose use is intended to mitigate or reverse the effects of human activity on the environment.” Green technology in real estate refers to any technology that mitigates a building’s environmental impact.
The beauty of technology is that it’s always getting better. Let’s take a closer look at some of the more modern examples of green building technology used in real estate development.
At Beach City Capital, a real estate investment and development company in Hermosa Beach, California, we incorporate green technology into our real estate projects early in the process. Following are some examples of green technology that the designers, architects and builders we work with frequently employ in our commercial real estate development projects.
Beach City Capital uses 3D BIM Coordination in its projects. Using this process, the design team can compare 3D models of building systems to mitigate risks in construction. This allows builders to navigate and solve potential issues before the construction process even starts.
We hire contractors to build 3D models in Revit and Sketch-Up, while utilizing Clash Detection software. The goal of clash detection is to eliminate any major issues ahead of construction. It also decreases construction time and cost, while resulting in less materials and energy used.
Prefabrication is another technique that we use in our projects. It involves assembling components of a structure off-site and transporting them to the construction site. 3D modeling is also used in the prefabrication process. For example, companies that prefabricate walls will first create a 3D model of a wall. Designers “flatten” the wall and take measurements to send to the production line. Production line workers produce the walls and load them onto a flatbed truck.
Once the prefabricated walls reach the construction site, a small number of laborers “put together the puzzle pieces.” This process requires less workers and time at the construction site to get the walls up. This increase in efficiency also helps keep the real estate project on budget. Beach City Capital projects often use prefabricated walls, bathrooms and truss systems.
We are always looking for ways to build new efficiencies into the construction process and that extends to parking solutions. Vertical mechanical parking stackers, such as CityLift Parking, rely on automated systems to increase parking efficiency and density. This increases the amount of parking spots available, since vehicles stack vertically instead of side-by-side in a parking lot.
We believe in electric vehicles and we aim to better our communities by encouraging their use. That’s why at least 10% of our parking systems include electric vehicle charging stations. This means drivers can easily park and charge their electric vehicles, such as Teslas and Priuses.
We embrace solar power and include rooftop electric panels in all of our buildings. We use solar water heaters and photovoltaic water heaters in our development projects to save energy.
We use bioswales and infiltration basins — two different forms of green technology — to filter out pollutants and urban grit in stormwater before they can enter into nearby sources of water. These mitigation techniques use dirt, sediment, and rocks to naturally filter the water.
The California Energy Code, also known as Title 24, was created in 1978 in response to a legislative mandate to reduce energy consumption across the state. The code, which is updated once every three years, includes energy conservation standards applicable to most buildings. Green technology helps building developers maintain or surpass Title 24 code compliance.
Some of the key benefits of Title 24 code compliance include:
A 2020 study found that Title 24 has been successful in reducing energy consumption thus far. The study also determined that the implementation of the policy passed a cost-benefit test.
At Beach City Capital, we only work with designers, architects and builders who know the ins and outs of Title 24 code compliance as it applies to commercial real estate development.
Investors of all ages are increasingly seeking out real estate investment opportunities that support a better way of living for future generations. Beach City Capital connects investors with exciting new development projects in Greater Los Angeles that give back to the community.
Our development focus is on creating multi-family housing and co-working spaces that are in compliance with Title 24 and include the latest green technology. When you invest your dollars into a Beach City Capital project, you can build wealth while bettering the lives of others.
Contact us for more information about our sustainable initiatives — including the green technology used in our development projects — and our investment opportunities.