Rich Bluth |

IRVINE, CA—The “Designed to Earn the ENERGY STAR” program allows new projects to establish energy-efficiency goals during the design process and to be recognized when their EPA energy model rating is in the top 25% of similar buildings nationwide, the Irvine Co. Office Properties' VP energy management Rich Bluth tells GlobeSt.com. The firm recently added this energy-efficiency distinction, making it the only company in America with the US Environmental Protection Agency's DEES rating for new office construction so far in 2017.

The company, which already owns and operates the largest number of energy-efficient, ENERGY STAR-certified office buildings in the nation, earned the accolades for the new 21-story 400 Spectrum Center high-rise here and five six-story buildings at Santa Clara Square in Silicon Valley. Together, the buildings offer more than 1.5 million square feet of new construction. The new buildings scored an average 92 out of 100 on the ENERGY STAR efficiency scale and are expected to perform among the top 10% of all buildings in the US after they open in fall, according to the EPA.

We spoke with Bluth about the new designation and what it means for CRE.

400 Spectrum Center Dr. |

GlobeSt.com: In a nutshell, what is the “Designed to Earn the ENERGY STAR” designation, and what does it do for CRE?

Bluth: The “Designed to Earn the ENERGY STAR” program was established by the US Environmental Protection Agency to create a complete ENERGY STAR lifecycle for buildings. It allows new building projects to establish energy efficiency goals during the design process and to be recognized when their EPA energy model rating is in the top 25% of similar buildings nationwide. For CRE, this program gives prospective customers an estimate of a building's energy performance in advance of occupancy and the ability to compare potential energy performance of different properties. A CRE customer knows that building owners receiving DEES certification have committed to designing and operating their buildings in a highly efficient manner. The owner also commits to tracking building energy performance using the EPA Portfolio Manager and submitting the building for operational certification if eligible.

GlobeSt.com: How difficult is it for current buildings or those in the pipeline to earn this designation?

Bluth: This designation is only available to new construction projects that have not yet received their certificate of occupancy. Seeking this level of recognition requires coordination of the entire building design team from project conception. The owner, architect and mechanical engineer work together in designing a building envelope and the building systems in such a manner that the building will be eligible for certification once occupied. Nationwide, only 157 office buildings have received this designation since the program began 15 years ago. We are honored that our newest projects, 400 Spectrum Center Dr. in Irvine and Santa Clara Square in Silicon Valley, have received the designation. The buildings are among a select group.

For existing buildings, the EPA also certifies the top 25% of energy efficient buildings, and we are proud to be the owner and operator of 113 ENERGY STAR-certified buildings—the most of any owner in the nation.

GlobeSt.com: What future types of designations do you foresee coming to the fore?

Bluth: The EPA ENERGY STAR and USGBC LEED designations have the broadest level of recognition in the markets we serve. There are at least eight unique Green Building Certification programs active in the US at this time, each with its own rating formula. We feel that these two systems provide the best overall picture to prospective and current customers regarding our buildings' overall energy efficiency and sustainability regarding design and operation. It is a standard process for us to seek DEES and LEED designations for all new construction projects.

GlobeSt.com: What else should our readers know about these designations?

Bluth: The DEES designation allows building users the opportunity to directly compare the “designed-in” energy performance of a new location to other locations, new or existing. Since utilities are one of the top operating expenses in building operations, an energy-efficient design means that operating expenses are minimized at a top-performing location. We have found that at our first DEES designated building, One La Jolla Center in San Diego (2014), the predictive DEES energy model results match very closely to the actual performance data we now have after operating the building for the past two years.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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