Green Means More for Multifamily Housing
ARLINGTON, Va. / March 25, 2009 – Americans' embrace of green living grows stronger every
day. So even if it's at a modest level, multifamily companies should start going green, says
Doug Walker, the Senior Vice President of Asset Quality for UDR, Inc. (NYSE:UDR) a national
multifamily REIT. Green means higher returns for multifamily housing firms, adding to their
bottom line, ROI, NOI and access to capital as well as improving resident retention and lease
rates.
Reduced consumption has produced the largest results for UDR. "If you replace pumps, motors,
HVAC and lighting that are using certain wattage with ones that use less, then you are using
less energy, which means less cost. It flows through to the bottom line, which increases NOI,
which increases value." The company did benchmarking and side-by-side comparisons
between units before it began its green initiatives to easily prove out results.
Another benefit has been in resident retention. A survey of UDR residents revealed that 80
percent feel that living in a community that is environmentally conscious is important. In
addition to higher retention and lease rates, Walker believes communities will be able to raise
rent by sharing in some of the cost savings from energy-efficient upgrades.
Light bulbs alone will be a large project: The company counted ten different bulb types, 49
different wattages, and more than 1 million bulbs across all of its properties. Additional planned
changes include programmable thermostats, motion sensor lighting controls, adjustments to
pool operations, landscape irrigation timers and an aggressive recycling program.
UDR is applying for LEED certifications in 10 new development projects, ranging from LEED
silver ratings to one community under design in Southern California that could be the first
platinum-rated multifamily development in the state.
Walker will serve on a panel called "Changing the Paradigm—Pioneering Green Apartment
Communities" at the 2009 NAA Green Conference & Exposition on April 28 in Phoenix.
He says UDR has already seen tangible results from the company's comprehensive green
initiatives, which include LEED-certified new development, redevelopment guided by LEED
standards, and a wide-ranging green retrofit program.
The National Apartment Association (NAA) is America's leading advocate for quality rental housing.
NAA's mission is to serve the interests of multifamily housing owners, managers, developers and
suppliers and maintain a high level of professionalism in the multifamily housing industry to better
serve the rental housing needs of the public.
NAA is a federation of nearly 200 state and local affiliates, comprised of more than 51,000 multifamily
housing companies representing more than 6.3 million apartment homes throughout the United States
and Canada. Members in good standing of any affiliated association are automatically considered
members of NAA and entitled to NAA benefits.