The demand for renewable energy continues to grow. More and more, facility leaders are looking for a way to improve sustainability with large-scale solar programs that establish their environmental commitment and provide matching financial rewards. For professionals managing multiple properties, “going green” at one facility alone can be challenging enough. Implementing renewable energy across a portfolio of properties can seem even more daunting.
Consisting of 85+ properties across 19 states, Macerich is a fully integrated, self-managed and self-administered real estate investment trust which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Under the stewardship of Vice President of Sustainability, Jeff Bedell, Macerich continued to fulfill its pledge to environmentally sound practices with the game-changing decision to implement solar across their portfolio.
Clearing the Hurdles
The three main hurdles faced by all facility managers when going solar – financing, implementation, and operations and maintenance – were magnified by Macerich’s substantial portfolio of properties.
Tax equity financing in general is extremely complex, requiring customized transactions tailored to each individual project. Needless to say, creating these unique finance structures for each of the properties served as a main roadblock for Macerich. The question of ownership of the systems was also a major concern. To take adventage of available tax incentives, given the limited tax capacity of Real Estate Investment Trust (REIT) entitites, third-party ownership was crucial.
Twenty Ninth Street Mall, Boulder, CO
In the implementation phase, Macerich was faced with catering to the unique specifications of multiple properties located in a number of states, each with their own permitting and procurement regulations. Some locations had straightforward installation conditions, while others featured spaces that required high-level design and construction expertise. In addition, implementation without interruption to retail business was crucial.
Operations and long-term maintenance of each system posed its own distinctive set of challenges. While there was no shortage of companies available for operations and maintenance at the beginning of the endeavor, there existed a cavernous lack of companies in which Macerich could trust to be dependable, consistent providers of those services for more than two decades across their national portfolio.
While daunting, Macerich was excited to play the role of pioneer in the sustainable development of large REIT portfolios.
The Solar Solution
In response to frustrated expressions of facility leaders managing a broad range of projects, Panasonic, in an exclusive partnership with Coronal Group, developed a turn-key, end-to-end solutions based platform able to directly address finance, implementation, and operations and maintenance concerns.
In 2011, Macerich aligned with Panasonic to begin their REIT power program. With a customized financing structure, Panasonic was able to compensate for Macerich’s lack of tax appetite and support the utilization of the varying federal tax credits and local incentives pertinent to each individual property. Panasonic’s unique comprehensive solution also resolved the issue of ownership, providing the third-party entity responsible for carrying the systems as assets via their relationship with Coronal Group.
With their extensive global network, Panasonic ensured quality implementation for every aspect of each individual project, regardless of location. And, as a nearly 100 year-old, $65 billion company, Panasonic guaranteed its ability to fulfill the 20 year commitment to sustaining expert operations and maintenance of Macerich’s solar systems.
Together, Macerich and Panasonic are nearing the successful installation of solar across 11 shopping centers totaling 10 MW of clean energy – enough power for approximately 10,000 homes.
Related Stories
| Dec 23, 2014
5 tech trends transforming BIM/VDC
From energy modeling on the fly to prefabrication of building systems, these advancements are potential game changers for AEC firms that are serious about building information modeling.
| Dec 19, 2014
Zaha Hadid unveils dune-shaped HQ for Emirati environmental management company
Zaha Hadid Architects released designs for the new headquarters of Emirati environmental management company Bee’ah, revealing a structure that references the shape and motion of a sand dune.
| Dec 18, 2014
International Parking Institute and Green Parking Council collaborate with GBCI
The new collaboration recognizes importance of sustainable parking facility design and management to the built environment.
| Dec 17, 2014
USGBC announces 2014 Best of Green Schools honorees
Houston's Monarch School was named the K-12 school of the year, and Western Michigan University was honored as the top higher-ed institution, based on environmental programs and education efforts.
| Nov 25, 2014
Behnisch Architekten unveils design for energy-positive building in Boston
The multi-use building for Artists For Humanity that is slated to be the largest energy positive commercial building in New England.
| Nov 21, 2014
STEP Foundation, Green Building Initiative Team to Promote Building Sustainability
The STEP Foundation, a nonprofit organization dedicated to providing technology industry benchmarks for sustainability practices in the built environment, and the Green Building Initiative, a nonprofit organization committed to accelerating the adoption of sustainable building practices, have signed a Memorandum of Understanding.
| Nov 2, 2014
Top 10 LEED lessons learned from a green building veteran
M+W Group's David Gibney offers his top lessons learned from coordinating dozens of large LEED projects during the past 13 years.
| Oct 30, 2014
CannonDesign releases guide for specifying flooring in healthcare settings
The new report, "Flooring Applications in Healthcare Settings," compares and contrasts different flooring types in the context of parameters such as health and safety impact, design and operational issues, environmental considerations, economics, and product options.
| Oct 29, 2014
Better guidance for appraising green buildings is steadily emerging
The Appraisal Foundation is striving to improve appraisers’ understanding of green valuation.
| Oct 27, 2014
Report estimates 1.2 million people experience LEED-certified retail centers daily
The "LEED In Motion: Retail" report includes USGBC’s conceptualization of the future of retail, emphasizing the economic and social benefit of green building for retailers of all sizes and types.