Rising energy costs and property assessments are causing Manekin LLC to go to the mat for its clients.
While energy costs, fueled by deregulation, won?t affect residential customers until July, the hikes hit the business community in 2004.
It was then that the Columbia-based commercial real estate developer and property manager decided to shop for energy prices.
“We hired an energy consultant to find the best price for our clients,” said Barbara Alden, Manekin director ofproperty management.
As a result, Manekin was able to save its clients 10 percent on their energy bills.
“The energy was still delivered to our tenants by Constellation Energy, but it was purchased elsewhere,” Alden said.
Manekin is also lobbying the state for tax credits for developers that build more energy-efficient buildings.
The company believes such credits would stimulate construction and help lessen the long-term energy shortage.
“Such buildings can generate 35 percent in energy savings,” said Cole Schnorf, Manekin?s director of development.
On Friday, Manekin held a groundbreaking ceremony for its own, new energy-efficient building it is constructing in Columbia.
Higher energy costs have also impacted Manekin?s construction costs, said Craig Wess, the company?s director of construction.
“Much of the materials used in construction are petroleum based,” Wess said.
Rising Assessments
While energy prices will continue to be a long-term challenge for commercial real estate developers, so will rising property assessments.
This is one downside of the ongoing real estate boom, said Owen J. Rouse Jr., Manekin?s director of investment services.
When Manekin believes that a jurisdiction has raised the assessment of a tenant?s property above a fair market price, it appeals.
“We win 90 percent of the time,” Rouse said.
At a glance
Square footage under management by Manekin LLC in Baltimore regional area:
» Howard County: 4 million
» Harford County: 459,650
» Baltimore City: 1.7 million
» Baltimore County: 421,614
» Carroll County: 313,275
» Anne Arundel: 215,300
