GREENING THE OPERATIONS AND MAINTENANCE OF BUILDINGS

Dennis Skelly, CPM, LEED AP, Senior Property Manager

Liberty Property Trust

Who We Are

• The nation’s second largest publicly-traded office and industrial REIT

• 20 markets in the United States and United Kingdom

• Over 700 office and industrial properties totaling 79.6 million square feet

• More than 2,700 tenants• A key corporate strategy to be a leader in

“High Performance” Sustainable Buildings

Who We Are

Locally, in the Hampton Roads & Richmond Markets, Liberty has over 5.6 million square feet of office and industrial space – comprising of 24 office buildings, 26 warehouse buildings, and 5 flex buildings.

– 1 LEED Gold Office Building– 1 LEED Silver Office Building– 13 Energy Star Office

Buildings

Who We Are

How did we get to where we are today???

Greening Operations & Maintenance

Basic Formula: Educate Benchmark Set Goals Track Results Acknowledge

Failures Celebrate

Successes

Educate

Internal: Property Management Staff: Monthly Energy Manager Roundtable “Green Guide” Database Required Green Advantage Designation LEED Green Associate/LEED AP

Internal: Employees Monthly Tips “Green Guide” Database Dedicated Sustainability Intranet Portal Page Lunch & Learns and Peer Group Sessions Blog New Hire Training Designations encouraged

Educate

External: Vendors Partner with existing Vendors whenever

possible Revised Contracts and Specs They must be accountable!

External: Building Occupants Tenant roundtables Monthly email tips Green Office Guide

Energy

• Benchmarking/tracking in Energy Star Portfolio Manager

• Goal: Reduce energy consumption 30% by 2012

• Energy audits• Low cost/no cost energy conservation measures• Lighting retrofits• BWAN Energy Monitoring• Grants & incentives• Employee financial incentives• Tenant communications

Energy Star Portfolio Manager

Energy Star Portfolio Manager

Prioritize portfolio-wide upgrades and improvements

1 1007550

Invest Adjust Maintain

Energy Performance Rating

25

Adjust

Invest

Level of

Focu

s

Low Cost/No Cost

What is running when it doesn’t need to be? Lighting HVAC Misc equipment

Adjust HVAC set points Calibrate thermostats Occupancy sensors LED exit signs BOMA: 30 Easy Ways to Save Ene

rgy

You can’t manage what you don’t measure . . .

Currently benchmarking all managed buildings in Energy Star Portfolio Manager 160 Buildings

Helps us with asset management decisions Cap Ex Acquisitions & Dispositions

Only one step in our strategy. . .

BWAN Energy Monitoring System

BWAN = “Building Wide Area Network” Energy Monitoring Monitoring of electric utility consumption at

building level Near real time electric usage is monitored and

data stored in a centralized database Provides visibility on existing internal corporate

Liberty network 130 Multi-tenant office properties, 11.5 million sq

ft project Multiple Electric/Gas Utility and ISP Market

Jurisdictions

BWAN Energy Monitoring System Today’s energy usage

BWAN Energy Monitoring System Last weeks trended usage

“After review of the RTU's programming, [our vendor]

discovered that one of the 60 ton units was indeed running in

manual 24x7 because someone had changed the programming

from running in program mode to manual mode.”

“We discovered [the building] had been running on Sundays for, we don’t know how long.”

“We found too many units coming on too close together causing a spike at 6 am”

BWAN Energy Monitoring System

“There was some spike in electric each morning at 4am at [the building]. We

requested our HVAC contractor to investigate and what they found was that at 4am each morning, the entire building was exhausting out all of the air and bringing in fresh air.”

“We had requested that the air be set back to 6-6 once [the tenant] moved out in March. The tech also was under the impression that it had been set back already. Further investigation found that it had never been set back.”

BWAN Energy Monitoring System

Energy Savings

Currently tracking 15 buildings in Hampton Roads & Richmond where we control bills – 160 buildings company-wide

We have saved over 3.9M kWh from our 2008 baseline = over $330,000 savings for tenants

Options for tenants: Submeter Request monthly data from landlord, even if

pro rata Request Energy Star score from landlord

Energy Star – as of 12/2009

Virginia BeachSorted by Adjusted Energy Use %Total Buildings: 13

Baseline Rating Current Rating Site Electric

(1-100) (1-100) kWh Difference

01516 - 208 Golden Oak Ct 59 78 1,408,970.30 1,149,631.00 -259,339.30 -19.001517 - 1 Enterprise Pkwy 61 77 1,626,921.30 1,356,480.00 -270,441.30 -17.101865 - 21 Enterprise Pkwy 62 76 1,742,187.10 1,488,600.00 -253,587.10 -14.701514 - 2809 S Lynnhaven Rd 56 68 1,425,539.00 1,254,170.30 -171,368.70 -12.601641 - 5700 Cleveland St 72 80 1,488,240.00 1,328,005.20 -160,234.80 -10.501837 - 1317 Executive Blvd. 39 50 1,882,193.50 1,777,575.50 -104,618.00 -10.401518 - 22 Enterprise Pkwy 74 79 1,360,660.60 1,262,528.00 -98,132.60 -7.401583 - 484 Viking Drive 28 32 1,034,037.70 998,907.90 -35,129.80 -4.201872 - 1305 Executive Boulevard 59 61 1,366,441.90 1,296,820.00 -69,621.90 -2.402003 - 501 Independence Parkway 66 67 1,176,261.30 1,162,064.50 -14,196.80 -2.002004 - 505 Independence Parkway 29 31 1,730,816.10 1,693,693.50 -37,122.60 -1.301934 - 521 Butler Farm Road 64 61 1,407,956.10 1,444,655.50 36,699.40 2.101515 - 200 Golden Oak Court 39 35 1,966,947.10 2,063,009.00 96,061.90 4.1Group Total 55 62 19,617,172 18,276,140 -1,341,032 -7.8

Eligible for Energy Star Certification

Nearly eligible for Energy Star certification

CommentsFacility Name

Baseline Site Electric Use

(kWh) - 12 Month Period Ending

12/31/2008

Current Site Electric Use (kWh) - 12

Month Period Ending 12/31/09

Change from Baseline: Adjusted

Energy Use (%)

Energy Star – as of 4/2011

VIRGINIA BEACHSorted by Adjusted Energy Use %Total Buildings: 12Energy Star Buildings

Baseline Rating

Current Rating Site Electric

(1-100) (1-100) kWh Difference

01583 - 484 Viking Drive 9/30/2011 45 82 1,034,037.70 611,123.70 -422,914.00 -34.301837 - 1317 Executive Blvd. 9/30/2011 59 82 1,871,651.60 1,287,503.20 -584,148.40 -27.201517 - 1 Enterprise Pkwy 4/30/2011 64 81 1,626,921.30 1,055,909.00 -571,012.30 -24.702004 - 505 Independence Parkway 4/30/2012 54 81 1,730,816.10 1,289,496.80 -441,319.30 -24.701515 - 200 Golden Oak Court 9/30/2011 66 88 1,966,947.10 1,502,503.40 -464,443.70 -19.801516 - 208 Golden Oak Ct 3/31/2011 65 83 1,408,970.30 1,036,542.90 -372,427.40 -19.401872 - 1305 Executive Boulevard 44 63 1,366,441.90 1,191,106.50 -175,335.40 -18.001514 - 2809 S Lynnhaven Rd 3/31/2011 64 80 1,425,539.00 1,319,862.90 -105,676.10 -16.601641 - 5700 Cleveland St 4/30/2011 82 91 1,488,240.00 1,273,722.90 -214,517.10 -15.001865 - 21 Enterprise Pkwy 10/31/2011 63 77 1,742,187.10 1,468,066.60 -274,120.50 -14.201518 - 22 Enterprise Pkwy 4/30/2011 79 87 1,360,660.60 1,133,205.90 -227,454.70 -13.202003 - 501 Independence Parkway 59 69 1,176,261.30 1,095,609.70 -80,651.60 -9.0Group Total 64 81 18,198,674.00 14,264,653.50 -3,934,020.50 -19.1

Facility NameEligible to Recertify

Comments

Baseline Site Electric Use (kWh) -

12 Month Period Ending 12/31/2008

Current Site Electric Use (kWh) -

12 Month Period Ending 04/30/2011

Change from Baseline: Adjusted

Energy Use (%)

Business Case

Risks Building

obsolescence Higher operating

expenses Lower occupancy

rates Increased liability

and insurance costs

Reputational Regulatory

Opportunities Lower operating

costs Healthier work

environments Higher tenant &

employee retention

Reduced liability and insurance costs

Higher asset value

Innovative solutions

Thank You! Dennis Skelly, CPM, LEED AP

Senior Property Manager

dskelly@libertyproperty.com

757.605.0405