7-24-20

2C — July 24 - August 13, 2020 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

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O wners , D evelopers & M anagers By Christina Martin and Shaun Comer, Edge Maneuvering the complexities of aging office & industrial props. T he protocols for execut- ing preventive, pro- active and on-going

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Owners, Developers &Managers should be conducted. A complete mapping of the building’s electrical infrastruc- ture needs to be completed to determine the quality of the Federal Pacific breakers and switchgears as they relate to present-day code require- ments and energy use. This is also true for the complete mechanical systems. The audit should focus on the condition of the closed loop mechani- cal piping, water treatment program, pneumatics, and outside air requirements and air distribution. Concerning the building’s plumbing systems, it is impor- tant to determine the vital wa- ter shutoff locations, ascertain the condition of water piping systems to detect possible inte- rior deterioration and examine the operational integrity of 50-year old gate valves. In most cases, lead was used in piping systems built prior to 1978. The checklist for the fire and safety systems include an inspection of the sprinkler sys- tem and emergency lighting. It is also important to under- stand the alarm monitoring requirements, hybrid systems and 120 v systems. The technology utilized in elevator systems has changed dramatically over the past 50 years. Prior to the initiation of any improvement or renovation program, it is important to de- termine whether hydraulic of traction systems are used, the condition of the call phones, sump pumps and pit. The venerable adage “they don’t build ‘em like they used to” cuts both ways when deal- ing with improvements and upgrades to older properties. For every positive encoun- tered by working on a building continued on page 5C

modernization tactics. All of this information will be ex- tremely useful when deter- mining the most economically- feasible course of action. Establish the long-term plan for the building before proceeding Once it is determined that a building is in need of main- tenance to ensure the safe operation of the asset, it is critical to establish the in- tended ownership timeframe and long-term plan for the existing investment group. Important factors to ascertain include (1) what is the intend- ed length of the holding plan; (2) what investment is needed for tenant build-out, tenant improvement and marketing/ leasing activities; (3) how many hours and how much money is needed to execute a building maintenance plan and (4) what actions are re- quired to maintain a safe and comfortable environment for current and new tenants. The answers to all of these ques- tions, and more, will guide the overall approach and timing of the planned maintenance program. Building designs continue to evolve based on the changing interaction with real estate among end-users, the mod- ernization of equipment and processes and the existence of materials. The prevalence of longer hallways, larger office space footprints and antiquated building systems including el- evators, tend to complicate and often add expense and time to any construction program. Working within the constraints of older building designs Subsets of these challenges related to the safety of the building include uncovering the existence of asbestos materials within the building; and the relative condition of the electri- cal infrastructure, mechanical systems, plumbing equipment, elevator systems, indoor air quality and fire and safety equipment. Should asbestos be detected, a management plan needs to be formulated with consideration given between the financial and logistics options of encap- sulation versus abatement. In either scenario, proper notifica - tion needs to be given to exist- ing tenants and contractors. As the situation impacts the rela- tive air quality of the building, testing for the presence of mold

maintenance strategies on ag ing com- mercial office and indus - trial strate- gies (defined f o r t h e s e purposes as delivered in t h e 1 9 7 0 s and earlier), vary widely f o r t h o s e c on s i d e r e d mo r e mod - ern based on the age and quality of me- chanical sys-

Christina Martin

TOTAL SUPPORT AFTER A PROPERTY LOSS

Shaun Comer

tems, overall design issues and the wear and tear toll taken on assets that have existed for 50 years or more. These issues are now increasingly timely given the impact of the COVID-19 crisis on buildings that are experiencing reduced usage or closures. Edge Property Servic- es Group recommends the first course of option to partner with an experienced commercial real estate services firm that is well versed in mitigating operating costs and extending the useful life of the asset. Overall asset management considerations for older buildings The execution of proactive preventative maintenance mea- sures before deterioration sets in is certain for all buildings but, before enacting a strategic plan, it is critical to perform preliminary research, espe- cially if the current owner is not the original entity. This process will uncover the ability or need to preserve outdated building systems, securing ob- solete parts from other sources and the access of critical equip- ment that may be proprietary. Additional studies should be initiated to determine if special requirement or restrictions ex- ist that would impact repairs intended for buildings with historical designations. Because, in most cases, pre- ventative measures under- taken on an aged property will be most costly than those performed on modern struc- tures, it is also recommended to determine comps for 50 year and older commercial office and industrial buildings in the area, as well as researching proven- successful redevelopment and

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