The Future of CRE Sustainability

EP 13 — Duane Morris’ Brad Molotsky on Why Solar Survives While Wind Falls in New Energy Landscape

The post-election landscape is dramatically shifting the regulatory environment for sustainability in commercial real estate, with states stepping up to fill the federal void. In this episode of The Future of CRE Sustainability, Brad Molotsky, Partner at Duane Morris, provides a candid analysis of how commercial real estate sustainability is evolving as political winds shift, from building energy performance standards (BEPS) gaining momentum in 46+ cities to California's aggressive climate disclosure requirements affecting companies nationwide. 
 
Brad explains to Sean how the industry has evolved from focusing on simple energy efficiency in 2005-2010 to embracing clean energy under the Biden administration's Inflation Reduction Act, and now facing a federal retrenchment that's paradoxically accelerating state-level climate initiatives. Brad also details how prominent companies are strategically pivoting their messaging away from "ESG" toward "efficiency" while maintaining the same sustainability goals, and offers critical insights on which renewable energy incentives will likely survive under the new administration.
Topics discussed:
 
How sustainability messaging in CRE is returning to efficiency-focused language as ESG becomes politically contentious, enabling companies to achieve the same goals under less controversial framing.
The rapid emergence of state-level building energy performance standards (BEPS) with 14 jurisdictions already implementing requirements and 46 more committing to pass regulations by 2025-2026.
California's groundbreaking climate disclosure laws requiring companies with $500M+ revenue to report climate risks and those with $1B+ to disclose Scope 1-3 emissions, creating ripple effects across all supply chains regardless of location.
How foreign investors from Europe, Canada, and the UK are driving sustainability requirements in US commercial real estate due to their more advanced regulatory environments and ESG expectations.
The dramatic insurance premium increases (20-30% annually for multiple years) in climate-vulnerable regions forcing investment committees to incorporate climate risk into acquisition decisions.
Strategic approaches to renewable energy tax credits under changing administrations, with solar likely to survive due to its employment numbers (450,000+ jobs) versus wind and EV incentives facing elimination.
The unexpected investment opportunity in PFAS remediation technology as these "forever chemicals" become the subject of massive litigation against government agencies, property owners, and manufacturers.

EP 12 — Soluna’s John Belizaire on Unlocking Stranded Renewable Assets

Soluna is transforming the renewable energy sector by solving one of its biggest economic challenges: curtailment. In this episode of The Future of CRE Sustainability, John Belizaire, CEO, explains to Sean how their innovative approach of pairing data centers with renewable energy sites eliminates wasted energy while revolutionizing project economics. John shares how Soluna converts negative-priced curtailed energy into positive revenue streams, creating a symbiotic relationship between computing and renewable generation. 
 
Originally inspired by a wind project in Morocco where the grid couldn't accept the full power generated, Soluna discovered that up to 30-40% of clean power from solar and wind farms can be curtailed or wasted worldwide. Their solution brings flexible computing load directly to generation sites, enabling renewable projects to maintain production tax credits while improving financial returns for investors who previously saw diminished profits due to curtailment. 
 
Topics discussed:
 
How curtailment affects renewable project economics by forcing operators to pay to send power to the grid or shut down turbines, jeopardizing production tax credits and investor returns.
Soluna's behind-the-meter data center approach that transforms negative-priced curtailed energy into positive revenue streams, improving project IRR and enabling production tax credit capture.
The flexible load model that enhances grid stability by functioning as energy storage without requiring batteries, creating a win-win for both power producers and grid operators.
Strategies for navigating complex project finance structures when integrating data centers with existing renewable assets without disrupting established PPAs and tax equity arrangements.
How computing demand's shift toward power availability is creating a "grand awakening" in the energy sector, with data center developers now prioritizing renewable energy proximity over traditional site selection criteria.
The mechanism of subtractive energy that enables seamless integration with existing power purchase agreements while ensuring grid settlements remain balanced.
How co-located data centers with flexible load capabilities offer a more economical alternative to traditional grid-scale battery storage for managing renewable intermittency.
The role of AI in optimizing energy planning, grid management, and infrastructure maintenance across renewable energy and commercial real estate portfolios.

EP 11 — Acento's Emily Pierce on Scaling Sustainability in Workforce Housing

What does it really take to implement sustainability in workforce housing? Emily Pierce, VP of Sustainability and Impact at Acento Real Estate Partners, offers practical wisdom on this topic in this episode of The Future of CRE Sustainability. Emily tells Sean about the unique challenges of bringing environmental initiatives to multi-family properties, from managing split incentives across hundreds of units to building cross-departmental support. 
 
She also explains how Acento is making sustainability accessible through practical approaches like EV charging stations and solar initiatives, while maintaining strong financial performance. Emily touches on the importance of relationship building, effective communication, and speaking the language of different stakeholders are crucial for success in scaling sustainability programs across real estate portfolios.
 
Topics discussed:
Implementing comprehensive sustainability strategies in workforce housing while managing unique challenges of multi-family properties including split incentives and tenant engagement.
Strategic approach to building cross-departmental support through effective communication and relationship building, focusing on stakeholder-specific benefits and metrics.
Analyzing and implementing sustainability initiatives like EV charging and solar projects with careful consideration of lease structures and property characteristics.
Balancing environmental impact with financial returns through systematic property assessment, energy audits, and strategic project prioritization.
Integration of technology and software solutions for monitoring building performance and identifying sustainability opportunities across the portfolio.
Evolution of sustainability reporting frameworks and their impact on institutional investment, with focus on GRESB and TCFD standards.
Navigating policy changes and government requirements while maintaining focus on private sector opportunities for environmental initiatives.
Strategic approach to education and communication for driving behavioral changes and building support for sustainability programs.
Impact of natural disasters and climate events on market trends and their influence on risk assessment and resilience planning.
Development of comprehensive sustainability strategies that combine technological solutions with behavioral change initiatives for maximum impact.

EP 10 — Essex Property Trust's Ryan Yetzer on Scaling Sustainable Practices Across Large Portfolios

From innovative approaches to EV charging infrastructure to practical solutions for solar implementation, this episode of The Future of CRE Sustainability offers a masterclass in large-scale property sustainability. Ryan Yetzer, Senior Director of Sustainability and ESG at Essex Property Trust, walks Sean through the strategies behind managing sustainability across a massive portfolio of 250+ properties. 
Ryan also shares his invaluable insights on achieving their ambitious 35% decarbonization goal by 2030, balancing financial returns with environmental impact, and effectively scaling sustainable practices. Learn how Essex Property Trust is revolutionizing the multifamily sector while maintaining strong financial performance and resident satisfaction.
 
Topics discussed:
Implementing comprehensive technology solutions for resident satisfaction while integrating sustainability initiatives to reduce utility costs and enhance property amenities.
A strategic approach to decarbonization through large-scale capital projects and behavioral improvements.
A detailed framework for evaluating ROI on sustainability initiatives, combining financial returns with environmental impact metrics.
Data-driven strategy for implementing EV charging infrastructure across properties, considering market penetration rates and future demand.
Integration of sustainability goals into capital expenditure planning, prioritizing projects based on environmental impact and available incentives.
Practical approaches to scaling sustainable practices across multiple properties through education, training, and standardized implementation processes.
Lessons learned from implementing new technologies and the importance of proper training and communication with on-site teams.
Comprehensive strategy for solar implementation, including navigation of utility regulations and maximization of tax credit opportunities.
Utilization of building performance data and metrics to track sustainability impact and drive decision-making across the portfolio.
Future outlook for commercial real estate sustainability, emphasizing the need for infrastructure development and industry-wide collaboration.

EP 9 — Avanath Capital Management’s David Natt on Finding ROI in Affordable Housing

If you think sustainability means sacrificing profits, think again. In this episode of The Future of CRE Sustainability, David Natt, SVP of Asset Management & Sustainability, Avanath Capital Management is flipping the script on ESG in affordable housing, proving that green initiatives can be a goldmine when done right. From slashing water bills with innovative tech to launching the country's largest dedicated portfolio of solar in affordable housing, Natt shares the secrets behind their meteoric rise in GRESB scores (40s to high 80s in just four years!). 
 
As institutional investors demand higher ESG standards, Natt tells Sean how his asset manager's mindset turned sustainability challenges into opportunities, delivering impressive ROIs while reducing carbon emissions. It's a masterclass in making green work — for the planet and the bottom line.
 
Topics discussed:
 
How affordable housing companies can boost their GRES scores despite inherent challenges.
The strategic installation of solar across 18 properties, positioning Avanath as an industry pioneer and achieving Fannie Mae's first-ever approval for solar in affordable housing.
Specific ROI metrics for sustainability improvements, proving the financial viability of green investments.
The critical role of European and social impact investors in driving higher ESG standards, including their influence on portfolio management decisions and investment criteria.
Innovative approaches to reducing utility costs in affordable housing, including the implementation of Aquamizer technology and heat pump conversions for significant cost savings.
The importance of data collection and analysis in ESG strategy, using mean variance analysis to identify "energy pigs" and optimize portfolio-wide energy consumption.
Strategies for maintaining affordability while implementing sustainable improvements, including leveraging federal and state rebate programs to offset installation costs.
The successful integration of solar benefits for residents, providing approximately $50 monthly savings on electricity bills through innovative programs like SOMA.
Long-term vision for expanding successful California sustainability initiatives across other states, while maintaining focus on both environmental impact and financial returns.

EP 8 — Omnidian’s Dave Kenny on Third-Party Ownership Models in Solar Energy

In this episode of The Future of CRE Sustainability, Sean sits down with Dave Kenny, COO and Co-founder of Omnidian, to discuss the critical role of proactive performance management in maximizing the value of solar investments, highlighting how many asset owners overlook this aspect. 
He also dives into the significance of third-party ownership models, which have made solar more accessible to a broader audience. Additionally, Dave shares insights on the resilience of the solar market amidst fluctuating utility prices and regulatory changes, emphasizing the importance of strategic management for long-term success in commercial real estate sustainability. 
Topics discussed:
The importance of proactive performance management in solar energy to ensure asset owners maximize their investments and avoid costly issues over time.
How fluctuating utility prices create a demand for solar solutions, allowing consumers to take control of their energy consumption and costs.
The evolution of the solar industry from technology challenges to business model innovation, focusing on user adoption and scalability.
The impact of third-party ownership models, such as power purchase agreements (PPAs), on making solar energy more accessible.
Key milestones in the solar industry, including the transition to financing models that support both commercial and residential solar installations.
The dynamic mix of financing options available in the solar market, including cash, loans, and third-party ownership, and their implications for adoption.
The value of timely issue identification and communication in maintaining solar asset performance.
The role of federal- and state-level policies in shaping the solar industry, including the Investment Tax Credit (ITC) and its effects on market growth.
Future trends in sustainability, including the convergence of solar, battery storage, and EV charging technologies to create integrated energy solutions.
The challenges and opportunities for solar investors as they navigate regulatory changes and market dynamics in the coming years.

EP 7 — GreenT Climate Software’s Mary Nitschke On Transforming Multi-family Sustainability

In this episode of The Future of CRE Sustainability, Sean speaks with Mary Nitschke, Chief Sustainability Officer at GreenT Climate Software. In their conversation, Mary shares her expertise on sustainability in multi-family properties. She discusses the unique challenges of utility management, emphasizing the importance of data analytics and technology in optimizing energy consumption. 
 
Mary also highlights the impact of building performance standards and the need for proactive compliance to avoid costly fines. Additionally, she explores the significance of tenant engagement and education in driving sustainable practices within communities. 
 
Topics discussed:
The unique challenges of multi-family properties in sustainability, including multiple energy meters and the complexity of tenant engagement for effective resource management. 
The role of technology in capturing utility consumption data, enabling property managers to make informed decisions that drive sustainability initiatives and reduce costs.
The importance of building performance standards (BPS) and how compliance can significantly impact financial performance and operational efficiency in commercial real estate.
Strategies for engaging residents and property teams in sustainability efforts, fostering a sense of community and shared responsibility for resource conservation.
The emerging trend of viewing utility costs as controllable expenses, encouraging property managers to actively manage and reduce consumption.
Insights on the impact of regulations and incentives related to sustainability, highlighting the need for property owners to stay informed and proactive.
The potential of AI and data analytics to model building performance and identify areas for improvement in energy efficiency and sustainability.
The significance of tenant education in promoting sustainable practices, ensuring residents understand their role in reducing energy and water consumption.
The benefits of integrating renewable energy solutions, such as solar and battery storage, to enhance sustainability and resilience in multi-family properties.
The connection between sustainability initiatives and financial performance, demonstrating how efficient properties can command higher rents and attract investment.

EP 6 — CREtelligent’s Anthony Romano on Transforming Due Diligence in Commercial Real Estate

In this episode of The Future of CRE Sustainability, Sean speaks with Anthony Romano, CEO of CREtelligent. They discuss the evolution of technology in commercial real estate, focusing on how platforms like CREtelligent Radius streamline the due diligence process, enhancing efficiency for lenders and property owners. 
 
Anthony also highlights the importance of understanding emerging environmental risks, such as climate change impacts, and how data analytics can aid in making informed investment decisions. Additionally, they explore the role of AI in revolutionizing property identification and risk assessments, paving the way for a more sustainable future in the industry. 
 
Topics discussed:
 
The evolution of technology in commercial real estate and its impact on due diligence processes, leading to increased efficiency and reduced transaction times.  
The role of data analytics in enhancing decision-making for lenders and property owners, enabling them to access crucial information quickly and effectively.  
Emerging environmental risks that commercial real estate investors should be aware of, including water, soil, and air quality concerns related to property transactions.  
The significance of climate change and its potential impacts on commercial property investments, emphasizing the need for proactive risk assessment strategies.  
The integration of AI in environmental risk assessments, allowing for faster analysis and improved accuracy in identifying potential hazards associated with properties.  
The importance of understanding zoning and use analysis as property types are reimagined, particularly in the context of adaptive reuse projects.  
Strategies for future-proofing commercial real estate investments, including awareness of market trends and the adoption of sustainable practices and technologies.  
The growing trend of asset owners exploring renewable energy and microgrid solutions to mitigate risks and ensure reliable energy access for their properties.  
The potential for geospatial intelligence tools to enhance site selection processes in commercial real estate, improving the identification of property boundaries and adjacent parcels.

EP 5 — IBM’s Frederico Egli on Adapting Office Spaces for the Hybrid Work Model

In this episode of The Future of CRE Sustainability, Sean speaks with Frederico Egli, Head of Real Estate for the US at IBM, who shares his journey from advertising to leading sustainable real estate initiatives. He discusses the importance of creating an "intelligent portfolio" that consolidates office spaces to reduce carbon footprints and enhance operational efficiency. 
 
Frederico also explores how the hybrid work model is reshaping office design, emphasizing the need for collaborative spaces that foster meaningful interactions. Additionally, he highlights the role of technology, including IoT and AI, in driving sustainability efforts and optimizing real estate decisions. 
 
Topics discussed:
 
The significance of sustainability in real estate decisions, focusing on how IBM integrates climate change directives into its portfolio management strategies.  
The concept of an "intelligent portfolio," which emphasizes reducing office space while maintaining operational efficiency and minimizing environmental impact.  
The impact of the hybrid work model on office design, shifting the focus from traditional workstations to collaborative spaces that encourage teamwork and innovation.  
The role of technology, particularly IoT and AI, in gathering data to optimize energy use and improve sustainability in existing buildings.  
IBM's initiative to repurpose existing vacant spaces, such as moving into a former Meta office in Austin, to promote sustainability and cost-effectiveness.  
The challenges of convincing CFOs about the financial benefits of sustainable investments and how technology is making these solutions more economically viable.  
The importance of listening to employee feedback to create workspaces that enhance productivity and align with the needs of the workforce.  
The evolving role of real estate professionals, requiring collaboration with HR and marketing to create spaces that meet both business and employee needs.  
Predictions for the future of commercial real estate, focusing on purpose-driven spaces that foster collaboration and innovation rather than just traditional office setups.

EP 4 — Station A’s Kevin Berkemeyer on Data-Driven Decisions for Renewable Energy Projects

In this episode of The Future of CRE Sustainability, Sean speaks with Kevin Berkemeyer, Co-founder & CEO at Station A. Together they explore the transformative role of technology in clean energy for commercial real estate. Kevin discusses how Station A’s innovative software simplifies the evaluation of buildings, enabling quick, data-driven decisions for renewable energy projects. 
 
Kevin also emphasizes the importance of leveraging AI and analytics to streamline project comparisons, the evolving landscape of energy storage, and strategies for prioritizing clean energy investments across large portfolios. 
 
Topics discussed:
 
The transition from an innovation team to a software and analytics team to address market challenges in evaluating commercial buildings for clean energy.
The significance of data collection in assessing building performance, including load data, bill data, and structural characteristics to inform renewable energy proposals.
How Station A's technology serves as a lead generation solution for developers and EPCs, helping them identify optimal project sites for solar and storage.
The evolution of building owners using Station A's data to prioritize their own properties for renewable energy projects, enhancing their market readiness.
The role of AI in automating the evaluation process, including image processing to detect rooftop obstructions and streamline proposal comparisons.
The importance of incorporating local and federal incentives, such as those from the IRA, to maximize the financial viability of clean energy projects.
Addressing misconceptions about clean energy by highlighting advancements in technology and market conditions that make renewable investments more accessible and viable.
The challenges of managing diverse project execution across various geographies and the need for reliable provider networks to ensure project success.
The growing interest in energy storage solutions and how they can enhance the value proposition of solar projects through demand charge management and grid services.
The impact of evolving market dynamics, including interest rates and political climate, on financing options and the overall appetite for renewable energy investments.