As a result, property managers will be years ahead of
most competitors, and prospective clients can swiftly compare an actual
“Green” track record with the somewhat vague promises of other property
management companies.
It wasn’t always this way for CB Richard Ellis (CBRE), a
commercial real estate services
company. In the past, the California company, which manages more than
1.7 billion square feet of buildings around the world, was challenged by
complex Environmental Protection Agency (EPA) and local jurisdictional
rules for ballast, battery, and lamp recycling.
The firm was forced to rely on a tangled network of
waste management suppliers that made it difficult to standardize and
replicate services in various locales.
Mark Aaron Polhemus, director of
engineering for CBRE’s Washington, D.C. market, remembers those
not-so-long-ago days.
“It was a lot more difficult. You
were never sure you were up to speed with all EPA standards. And we were
looking through the Yellow Pages to find services,” he said.
Polhemus, who oversees engineering
staff and operations for 400 locations, a total of forty-two million
square feet of assets, now has the grand expanse of his environmental
responsibilities at his finger tips. Thanks to an innovative,
custom-built, user-friendly website, Polhemus can quickly procure
services for new and existing assets, access a summary of universal
waste recycling results, and research recycling advances and new
programs that might interest clients. Also, new staff engineers are
immediately enrolled into the record-keeping system when they join the
firm.
The website has also morphed into a
marketing tool that advances CBRE’s position as a leader in the “Green”
building movement. Recently CBRE was the first commercial real estate
services company to announce plans to go carbon neutral in its own
operations – with a target to achieve this goal by 2010. At the
properties it is managing for clients, CBRE has made a long-term
commitment to an environmental sustainability program known as Sensible
Sustainability.
This development comes at a time when
building owners who distribute requests for management proposals have
begun to require a detailed account of environmental standards and
practices. The website, therefore, is an ideal presentation tool for
prospective clients and proof of CBRE’s sustainability commitment.
“It’s live. It gets updated as
information changes, it gives us a distinct market advantage over our
competitors,” said Polhemus.
All this from a program that didn’t
exist a year ago when Polhemus joined CBRE when it acquired his previous
employer, the Trammell Crow Co. His initial assignment was daunting:
find better methods for recycling fluorescent bulbs and other waste for
all CBRE assets.
Fortunately, Polhemus had already
championed a successful recycling program for Trammell Crow, with the
help of Rod Kincaid, vice president of Virginia based Esquire
Environmental Services, a consulting firm.
It was Kincaid who introduced
Polhemus and Trammell Crow to Air Cycle Corp. The Illinois-based firm
pioneered unique web based programs, such as the EasyPak Pre-Paid
Recycling Program, which allows companies to ship spent fluorescent
lamps and batteries to recycling facilities in UL approved containers.
And it invented the Bulb Eater for large facilities that prefer crushing
their lamps on-site prior to having them recycled.
Polhemus quickly embraced Air Cycle’s
various programs and found success. But the size of the CBRE portfolio,
which includes about 4,500 properties in the U.S., presented a whole new
logistical hurdle.
For Kincaid it was a conundrum: How
to provide standardized practices with customized solutions. After all,
even though CBRE assets were mostly office buildings, each would require
a different combination of recycling services. And each would benefit
from a direct conduit to updated recycling information and guidelines
for various types of wastes.
The answer to the riddle came to
Kincaid one day while walking his dog: a customized, dedicated web-based
program that allowed corporations to refer to and manage their vast
waste management needs.
Also, Kincaid saw the necessity of a
website specific to CBRE. The old practice of a firm sending prospective
clients to the URL of its waste management provider was passé, in
Kincaid’s opinion, because it provided no marketing advantage.
“Imagine trying to prove how Green
you are. When you can go to your own dedicated website with your own
corporate branding and you can demonstrate your own programs, we think
it’s far more powerful,” he said. “America wants to be Green and do
business with other businesses that are Green.”
Kincaid presented his idea to Air
Cycle CEO Scott Beierwaltes, whose staff began to brainstorm and develop
the idea. Kincaid, who is a film buff, likened the process to watching
the creation of a major motion picture, from concept to final cut.
“Witnessing the realization of a
concept that I shared with someone was incredible. Better, more creative
minds took it, and it evolved into this green business masterpiece.
It’s the ‘Gone with the Wind’ of the
environmental world,” he said.
Innovation Price Versus Penalties
The profound organizational
implications of the Air Cycle program were obvious to all concerned. And
while such an initiative would be an investment, for CBRE it far
outweighed the price of possible environmental damage and potentially
falling short of EPA laws concerning mercury content in fluorescent
lamps.
For example, the discovery of illegal
dumping habits might force the EPA to slap a company with penalty fees
in excess of $250,000. Even worse, a delinquent firm could be forced to
cleanup a remote and costly Superfund site. And then there is the matter
of public perception. A company that defiles the environment is not a
good neighbor, which could cause ill will within the community.
“We have a huge variety of different
tenants and customers. This program allows our Real Estate Managers to
have at their fingertips the local laws to make sure tenants properly
dispose of hazardous waste and keep mercury out of our nation’s
landfills,” Polhemus said. “It costs a little bit. But we assume as
environmental sensitivity continues to grow, you would see the cost
stabilize as this becomes mainstream. It’s just like any new product.”
Air Cycle CEO Beierwaltes praised
CBRE for its commitment, not only to improving its recycling program,
but also to helping educate and expand the consciousness of the
community.
“They want to help create a culture
of being Green for their tenants, but they understood that to really do
it right they needed to provide a comprehensive program.
Not just provide the service, but to
be able to measure and report it and capture success stories that are
then shared on the site. The hope is the website helps them do all that
– more than just know their buildings are Green, but to influence the
way people think about recycling,” he said, adding, “We hope CBRE’s
commitment will act as a catalyst across the country for many other
organizations to realize the value in being environmentally
responsible.”
The innovative program that began
with just 50 properties, will eventually serve the 4,500 properties that
CBRE manages in the U.S.