EPA bestows first 'Energy Star' honors.

100 commercial buildings throughout the U.S. recently received the federal government's highest symbol of excellence 'for energy efficiency and environmental conservation - the "Energy Star" label.

Among the companies to have earned an Energy Star designation for one or more of their buildings are Real Estate Roundtable members Arden Realty Inc., The Durst Organization, Equity Office Properties, Mack-Cali Realty and Prentiss Property Services.

Arden was also honored by the Environmental Protection Agency (EPA)earlier this year as the "2000 Buildings - Commercial Real Estate Owner of the Year" for owning the most energy-efficient buildings in one portfolio - nearly 25 percent of all buildings recognized nationally.

To qualify for "star" status, buildings must meet strict energy performance criteria that certify them in the top 25 percent of all comparable buildings for energy efficiency. They must also meet minimum standards for healthy indoor air quality. The U.S. Department of Energy (DOE) and EPA extend the Energy Star designation to commercial estate in 1999 as an incentive for the industry to reduce demand for electric energy use, thereby helping to lower green-house gas emissions.

The properties being recognized by DOE and EPA officials range from state-of-the-art office towers to historic buildings built during the Depression. The real estate industry's participation in the program brings the overall commercial space covered by Energy Star initiatives to 20 billion square feet.

Recipients were honored at a special ceremony co-hosted by The Real Estate Roundtable, the Durst Organization and the two federal agencies at Four Times Square, a high-tech yet energy efficient showcase whose tenants include the NASDAQ stock exchange. Presenting the awards were EPA administrator Carol Browner; Deputy Energy secretary T.J. Glauthier; Roundtable members Robert C. Larson, chairman of Lazard Freres Real Estate Investors, LLC and managing director of Lazard Freres & Co. LLC; and Douglas Durst, president of The Durst Organization.

In kicking off the event, Larson said, "We're here to salute the achievements of real estate visionaries who have earned our government's highest symbol of excellence for outstanding building performance. We are also celebrating something equally important, a special public-private commitment by these companies, the EPA and the Energy Department to making 'green buildings' both economically and environmentally feasible.

"As anyone who owns or invests in real estate can tell you, having an energy-efficient building is quickly becoming part of every smart company's competitive strategy," he explained. "Until now, the ability to measure the bottom-line return on investment of new energy-saving products in buildings has been difficult, if not impossible. The Energy Department and EPA have developed some promising tools to measure the ROI of energy-efficiency applications in buildings. Over time, these tools should prove helpful to investors in valuing and differentiating real estate portfolios and asset management strategies."

At the event, federal officials also released a financial analysis that estimates the total net present value of energy-efficiency investments by U.S. companies.

For Arden Realty, participation in The Energy Star program has had measurable, bottom-line benefits. To date, the company has saved $2.9 million in annual energy operating costs for 39 buildings that qualify for an Energy Star and $4.9 million across its entire portfolio.

"We worked hard to achieve a top position nationally in the Energy Star program because we recognize that meeting the EPA'S benchmark nor only benefits the environment, it creates value for our shareholders," said Richard Ziman, chairman and CEO of Arden Realty.

Other Energy Star recipients agreed that applying advanced, eco-friendly designs and technologies to new and existing buildings is good for business as well as for the environment.

"The Energy Star label symbolizes our deepest organizational commitment to making office buildings energy efficient, financially viable, and better places in which to work," said Durst. "For us and our tenants, high-performance buildings make both economic and ecological sense - whether it's new projects like Four limes Square, or buildings like the one on 6th Avenue that was chosen for an Energy Star."

Tim Callahan, president and CEO of Equity Office Properties Trust, added, "Energy efficiency has become an important benchmark for our entire portfolio of 293 buildings, which comprise nearly 77 million square feet in 23 states and the District of Columbia. For us, the Energy Star label signals to our tenants and investors that we're capitalizing on an extraordinary opportunity to make our buildings environmentally and fiscally sound."