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Renewable energy gives law firms edge with clients

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When it comes to advising clients on environmental and energy efficiency matters, attorney Edward J. Ritger likes to practice what he preaches.

About a third of the power used by his three-attorney general practice firm in Random Lake is generated by solar panels installed on the roof. Ritger spent $30,000 on the renewable energy source a decade ago when he built a new 6,000 square-foot office outside of Sheboygan. It paid for itself in seven years and has even helped bring in clients.

“A lot of homeowners and businesses are looking to make their own properties more efficient and that interest has really fed into our real estate practice,” Ritger said.

On occasion, existing and prospective clients tour the firm’s office, which includes a recently updated geothermal groundwater-source heat pump system.

Ritger is moving closer to energy efficient nirvana, one kilowatt at a time, and is currently exploring the possibility of purchasing a wind turbine. The turbine, combined with the solar panels, would produce enough renewable energy to sustain the office.

“We would create more power than we’d use and sell the rest back to the utility company,” he said. “It would be like if the meter were running backwards.”

Some urban law offices are also pushing for more eco-friendly work environments. However, they face two problems: There’s only so much that renters can do to lower their energy usage and wholesale changes to the buildings are often not cost-effective.

Some firms look for any advantage possible. Madison-based Axley Brynelson LLP is looking to be more energy efficient in its office near the State Capitol through the use of sensor-activated faucets and lights as well as solar blinds.

But managing partner John C. Mitby admitted that because the firm is renting space, it has limited options.

“I haven’t seen any wind turbines or solar panels in downtown Madison yet, so I think a lot of it is more cosmetic,” he said. “There are limitations, but it is something clients are looking for.”

Axley’s construction lawyers have negotiated Leadership in Energy and Environmental Design (LEED) provisions and the firm also has a group of attorneys who practice environmental law.

Kevin O’Driscoll, Commercial Leasing Director of Urban Land Interests,  said in his experience, more law firms are focusing on energy conservation not only to impact the bottom line, but also to help business development with clients.

Although O’Driscoll said commercial leasing is a “tenant-driven market” right now, energy-efficient improvements still have to make financial sense for the owner. Solar panels or wind turbines might be a tougher sell in a downtown setting given the installation costs, whereas internal improvements may be less expensive, but still help reduce energy costs.

“There is always a cost-benefit analysis and some of those features are not particularly cost-effective,” he said. “When we sit down with a client we’ll talk about options and whether they will save money or not, then determine what to do.”

In 2008, the Madison-based development company purchased the 36-year old U.S. Bank Plaza building, which houses the local offices of Michael Best & Friedrich LLP and the Boardman Law Firm LLP.

At the time, O’Driscoll said the building was at risk of losing Michael Best as one of its anchor tenants. The company performed substantial renovations, including mechanical system replacements.

The updates cut peak kilowatt consumption by more than 40 percent and water use by 85 percent. O’Driscoll said they are also pursing LEED silver certification of the building.

“Energy efficiency is definitely one of the top five things law firms are looking at now in deciding whether to stay in a space or relocate,” O’Driscoll said.

Environmental attorney Linda H. Bochert is in charge of the Sustainability Initiative at Michael Best and said utilization of renewable energy sources are certainly “on the radar.”

At this point, the firm rents space at four locations in Wisconsin, but Bochert said the ongoing improvements at the Madison office reinforce other green efforts such as recycling.

“We’re supportive of those efforts to the extent we can be as tenants,” she said. “I absolutely see an increased emphasis on energy efficiency and we’re interested in aligning our interests in those areas with those of clients.”

While Axley’s current lease doesn’t expire until 2013, Mitby said energy efficiency will be a factor in deciding whether to renew or move.

“What the place has going on in terms of energy savings and green initiatives will be a criteria as to whether we stay in this building or go to another facility,” he said.

Ritger conceded that in a small-town setting, showcasing energy efficiency works well to attract local clients. But he doesn’t necessarily view himself in a competition with other firms. Instead, it’s an effort to be more energy conscious and at the same time, potentially broaden business.

“It’s more a matter of reinforcing client confidence because businesses and people are increasingly committed to renewable energy and they want to see that same commitment from you,” he said.

Jack Zemlicka can be reached at jack.zemlicka@wislawjournal.com.


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