Monday, October 13, 2008

Green Buildings - Radon Gas and Granite Countertops

I think fights have actually broken out over the issue of Radon and Granite Countertops. There are a few things to consider.

Radon is a naturally occurring element that is the result of the breakdown of the element Radium, found commonly in granite. Radon is referred to as the second largest cause of lung disease in the US and the 6th largest cause of cancer related deaths overall. The EPA does not suggest that granite countertops are the primary cause of high Radon levels, but they can emit the gas.

Don't go out and redecorate your kitchen and bathrooms because you think your tops are going to give you lung cancer! However, there is a valid point to be made here.

As Radon is a naturally occurring element, and it primarily enters your home or office through the ground, proper ventilation is probably a good first step. Unfortunately, some 'green' building techniques and better insulation that are intended to provide more energy efficient homes and offices may inadvertently trap Radon gas. If the AC is running less and the insulation is has an extremely high R Value, then the naturally occurring Radon in your home or office (if you have high levels) may not be able to escape.

There are some interesting green solutions that proport to help reduce Radon levels in a building. CertainTeed Form-A-Drain is a product that uses 100% pre and post consumer recycled materials. This product is placed around the form before the slap is poured and acts as a foundation drainage system. It is also easyly adaptable to help reduce Radon in a structure. On top of all of that, this product can help earn a building valuable points toward becoming LEED certified.

It's important to consider the consequences of reduced air circulation in the green spaces where we spend lots of our time. Take the necessary steps to ensure safe construction of your green building. Here's how to test for Radon.

Reference:
EPA on Radon
CertainTeed Form-A-Drain
2008 University of Akron Radon Study - on granite tops
(There is a whole host of information available on the internet detailing both sides of the issue.)

Contact or Comment with questions, ideas, or general musings.

Building Green - Pros and Cons

The 'building green' industry has become a $15 billion + industry and has gained much notoriety around the country, and for good reason. There is a lot to attract a potential buyer to a more energy efficient building product. To name a few perceived advantages:

1. Less impact on the environment
2. More cost efficient to operate
3. New market capitalization

There are a lot of things a potential buyer should know when purchasing a 'green building'. What is a LEED Certified Building? The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. Simply put, a LEED certified building is one that meets the nationally recognized standards of building performance. You can even purchase a reference guide on their website. (No, I don't make anything by you buying one.)

In a March, 2008 study by CoStar, green buildings were shown to hold many advantages over their non-green competition. Advantages include, but are not limited to, increased occupancy, increased rent, and sale price. Sometimes, the margins are dramatic. The cost savings actually translate into a greater NOI (Net Operating Income) for investor/owners, making the building actually worth more. Whether you're looking to reduce your energy consumption or merely make a solid Real Estate investment, that's a bottom line everyone can all agree upon.

... or maybe not? You can't argue with the numbers, but what are the long term effects of greater energy efficiency in our buildings? Could the trend and perceived under supply of green buildings be creating an over inflation in the market? - even with today's credit crisis? Are green buildings in certain areas with greater moisture or radon gas more susceptible to potential problems? I'll examine some potential long term pit falls on this blog in the future.

Reference: The CoStar Study

Contact me with questions, ideas, thoughts about this or other building related subjects (or post a comment). I want to address the issues that people find important.

Thursday, October 9, 2008

New ASTM Standards for Property Condition Assessments

Updated ASTM standards (American Society for Testing and Materials) for Property Condition Assessments were recently released. The latest version of ASTM 2018-08 can be bought here. Originally released in 1999, the ASTM Standard for PCA/PCRs (Property Condition Assessments/Reports) is the most widely recognized standard for this type of work. Usage is hard to quanitize, but conservative estimates indicated that this standard has been used in over 400,000 Property Condition Assessments.

The latest version of the original 31 page document has over 200 revisions. The purpose of the standard is to provide a guide for a 'baseline' PCA of commercial property.

Reference: Wall Street Journal

For more information on PCAs that Due Diligence Associates, Inc performs nationwide, please click here. Please feel free to contact us with questions or quote requests.

Wednesday, October 8, 2008

Condo Associations and Insurance Companies

Taking care of hurricane damage can be a tricky proposition, especially if you're an insurance company. In the aftermath of a storm, many contractors charge HUGE fees, do shoddy work, and sometimes aren't even available to do warranty repair work after the project is completed. This is a huge problem for coastal communities that have been affected by the many storms over the last few years. Some people rely completely on the insurance company to fix their problems in the event of a storm. Some damage from storms is not even evident for many years. If storm damage is not repaired, many new problems can arise:

1. Organic growth is always a danger here in Florida and in many areas. Mold spores can make people sick - specifically respiratory illnesses. Note on Mold: It is not possible to look at a substance on a surface and determine if it is mold. Sterile samples have to be taken and then tested in a laboratory to determine what the nature of the organic growth is.

2. Water intrusion in brick can cause the brick to crack. This can cause greater moisture intrusion.

3. Wind from hurricanes can cause buildings to move creating cracks in the stucco. These cracks can allow moisture into a structure, creating the a great environment for organic growth.

4. Roofing is always an issue, but even if the roofing has been repaired of replaced, there may be damage to the interior of units (especially rentals) that is not reported or known.

There are many obstacles to deal with when properly recovering a structure after a windstorm event. Keep these things in mind as you consider your recovery strategy.

Here are a few interesting articles about Florida:

Condo sues Insurance Co.
Financial Crisis and Florida's Insurance Fund

My company is Due Diligence Associates. We work with clients by doing inspections on Commercial Real Estate. We've done work in 25 states to present, but are based in Florida. If you would like to know more about DDA or contact us, please visit our website: www.DDAnet.com