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New regulations proposed for Phoenix commercial property owners

Property owners have a myriad of factors to consider when deciding to build a new commercial building. Phoenix property owners must consider complex and ever-evolving local, state and federal commercial real estate laws. Depending on the outcome of a newly proposed law, commercial property owners may have another element to add to their list of concerns.

The city of Phoenix is considering a disclosure law which would require property owners of buildings more than 50,000 square feet to report their energy consumption and use of renewable sources. Owners would be required to report to a public database called Energy Star, which is operated by the U.S. Environmental Protection Agency. The Energy Star program, commonly associated with energy efficiency appliances, also provides grades to properties based on energy consumption and renewable materials used. New York, Chicago and San Francisco already require similar reporting under existing disclosure laws. The proposed law for Phoenix would require mandatory reporting.

Reactions to the proposed law have been mixed, with some in the real estate industry expressing concern that the program may pressure them to adopt green and renewable procedures, as the information will be available to the public. Those in favor of the law welcome the increased adoption of green practices that the database may encourage.

It is unclear what effect, if any, this proposed law could have on future commercial property development in the Phoenix area. The proposed law would affect both existing commercial property owners, as well as those seeking to build a new commercial property. An attorney experienced in commercial real estate law can assist commercial property owners in interpreting both the current laws and any laws on the horizon that may affect building decisions.

Source:, "Phoenix considers requiring building owners to report energy use, renewable," Feb. 9, 2015

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