Adopting sensible solutions for an ECO-FRIENDLY ENVIRONMENT.

In the early '90s, it was easy to keep track of environmental issues related to the property management industry. There were only a few on the radar screen: asbestos, mercury in fluorescent lighting, underground oil ranks and Legionnaire's Disease. Today, however, that list has grown to dozens of issues including a modern-day energy crisis, water shortages, ADA issues, lead paint, lawsuits with sick employees and building mold problems.

Indeed, this environmental arena has produced fodder for a good novel or a thrilling movie script with plenty of mystery, suspense and intrigue. There is little doubt that all management companies have been or will be touched by an environmental problem or opportunity in this new century. Gone are the days that being environmentally concerned is seen as being radical, left wing or too touchy-feely--today it is just plain good business.

Why will real estate management firms need to be concerned with environmental issues now and in the future? There are a number of good reasons including:

* Energy Costs. California has rolling blackouts. Minnesota is under a new threat of an energy shortage over the next several years. High natural gas heating bills two and three times that budgeted defined the winter of 2001 for the northern U.S. There were outrageously high electric cooling rates in the southern and western states in the hot spring of this year. Gasoline prices hit near or over the $2/gallon price point in most markets prior to Memorial Day. These examples stand alone as a reason to make energy management a priority at all of your properties.

Since the energy crisis of the '70s energy has been cheap and plentiful, but suddenly, it is expensive and not always available. Property managers and building owners need to explore alternative energy sources for their buildings, educate residents and tenants about conservation and replace or update antiquated equipment.

* Liability Issues. There are a growing number of people who suffer from Multiple Chemical Sensitivity (MCS), a debilitating disease characterized by a heightened sensitivity to one or all chemicals present in our everyday lives. Consequently, building managers or owners may be asked for a "reasonable accommodation" for a tenant's disability. This accommodation may rake the form of asking the building owner or manager to use non-toxic cleaning products, paints or building materials in their unit or common areas. There have been laws and lawsuits over building issues related to lead paint, asbestos and mercury--we have started to see litigation about the ubiquitous indoor air not only in commercial buildings but in residential properties as well. On the horizon are lawsuits involving worker health for those we hire to clean and paint at our properties as a result of their contact with these products. Education and planning can greatly reduce the potential for litigation as it relates to environmental issues.