SOURCE: Blumberg Capital Partners

September 07, 2007 16:22 ET

Reduce Building Costs by 33% -- Philip Blumberg Applies for Energy Star

CORAL GABLES, FL--(Marketwire - September 7, 2007) - Blumberg Capital Partners today launched a commitment to the real estate industry to help manage the rising costs of energy by encouraging building owners to institute effective energy management programs to lower operating expenses and increase asset value.

As a first step, Blumberg applied for the US government's Energy Star rating at Blumberg Capital Partners' 3 Riverway property in Houston, Texas. Energy Star estimates that energy costs account for one-third of a building's costs and are a property's single largest operating expense. Reducing these costs, along with the environmental pollution that goes with them, makes commercial as well as environmental sense. By applying to become an Energy Star partner, Blumberg demonstrates its commitment to providing the most efficient buildings possible and contributes to saving the environment for future generations. "From both the business and environmental perspectives, we urge all building owners to partner with Energy Star," said Philip Blumberg, Founder and CEO of Blumberg Capital Partners.

Secondly, Blumberg is incorporating the Energy Star guidelines into its Commercial Real Estate Best Practices -- a set of operating principles intended to set the industry standard for efficient building management. Research studies show that consumers increasingly look for energy efficient homes and appliances -- for example, those that meet the strict energy efficiency guidelines set by the EPA and US Department of Energy.

Blumberg believes that the real estate sector will have to respond in kind. Construction companies and other commercial operators will have to take a strategic approach to energy management that will not only pass regulatory muster but also increase asset value through better energy performance and higher tenant satisfaction and retention. Strategic energy management can produce twice the savings for the bottom line and the environment as can short term approaches.

Philip Blumberg identifies the key steps as follows:

1. Measure current energy performance. In order to establish an effective energy reduction program, determine a starting point from which future energy reduction/savings will be compared. Initial Ratings and performance can identify specific areas of poor performance and aid in strategic planning and building upgrades. Evaluation results and information gathered during the initial review process can be used to create an action plan.

2. Set energy reduction goals. Setting clear and measurable goals is critical for developing effective strategies. In order to set strategies for improving the Energy Performance of office buildings, identify and quantify cost effective opportunities to improve building and portfolio-wide energy performance in operations and maintenance, occupants' behaviors, lighting, controls, and equipment. Well-stated goals will aid decision-making and are the basis for tracking and measuring progress.

3. Track savings. Establish a system to measure and verify performance results in order to measure energy performance from a building and portfolio perspective. This information will provide valuable information for making decisions regarding investments in energy efficiency, developing energy management plans, measuring improvement over time, and reaping financial gains.

4. Apply for the rewards of improvements. Buildings can earn the Energy Star rating by establishing a rating of 75 or higher. This achievement shows that the building owner has made every reasonable effort to operate the building as efficiently as possible. Building owners are recognizing the environmental issues society faces today and the role they can collectively play in alleviating some of the problems by reducing energy consumption.

For more information, please contact Philip Blumberg.