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
Government Buildings | Aug 7, 2023
Nearly $1 billion earmarked for energy efficiency upgrades to federal buildings
The U.S. General Services Administration (GSA) recently announced plans to use $975 million in Inflation Reduction Act funding for energy efficiency and clean energy upgrades to federal buildings across the country. The investment will impact about 40 million sf, or about 20% of GSA’s federal buildings portfolio.
Codes and Standards | Aug 7, 2023
Cambridge, Mass., requires net-zero emissions for some large buildings by 2035
The City of Cambridge, Mass., recently mandated that all non-residential buildings—including existing structures—larger than 100,000 sf meet a net-zero emissions requirement by 2035.
Multifamily Housing | Jul 31, 2023
6 multifamily housing projects win 2023 LEED Homes Awards
The 2023 LEED Homes Awards winners in the multifamily space represent green, LEED-certified buildings designed to provide clean indoor air and reduced energy consumption.
Sustainability | Jul 27, 2023
USGBC warns against building energy code preemptions, rollbacks
In a recent editorial, the USGBC cited a growing number of U.S. state legislators who are “aiming to roll back building energy code standards and/or preempt local governments from advancing energy-efficient building codes.”
Resiliency | Jul 27, 2023
'Underground climate change' can damage building foundations, civil infrastructure
A phenomenon known as “underground climate change” can lead to damage of building foundations and civil infrastructure, according to a researcher at Northwestern University. When the ground gets hotter, it can expand and contract, causing foundations to move and sometimes crack.
Sustainability | Jul 19, 2023
California lawmakers approve governor’s plan to accelerate green construction
California lawmakers recently approved Gov. Gavin Newsom’s infrastructure streamlining plan that aims to accelerate clean energy and infrastructure projects.
Sustainability | Jul 13, 2023
Deep green retrofits: Updating old buildings to new sustainability standards
HOK’s David Weatherhead and Atenor’s Eoin Conroy discuss the challenges and opportunities of refurbishing old buildings to meet modern-day sustainability standards.
Mass Timber | Jul 11, 2023
5 solutions to acoustic issues in mass timber buildings
For all its advantages, mass timber also has a less-heralded quality: its acoustic challenges. Exposed wood ceilings and floors have led to issues with excessive noise. Mass timber experts offer practical solutions to the top five acoustic issues in mass timber buildings.
Codes | Jul 10, 2023
Water Demand Calculator outperforms traditional plumbing codes for energy, carbon, and water savings
Using IAPMO’s Water Demand Calculator tool can result in energy, carbon, and water savings as compared to using traditional plumbing specification methods in plumbing codes, according to a study by Arup.
Contractors | Jun 30, 2023
Construction industry task force aims for standardized carbon reporting
A newly formed Associated General Contractors of America (AGC) task force on decarbonization and carbon reporting will address the challenges around reporting and reducing carbon emissions in the construction industry.