RONALD B. GRAIS, Of Counsel Full Bio Chicago Office Office: (312) 923-2810 Fax: (312) 923-2910 Email: rgrais@jenner.com

Jenner & Block Partner Ronald B. Grais recently spoke about the current and future state of green leasing for existing buildings at a breakfast seminar held at Jenner & Block’s Chicago office.  Mr. Grais was joined by Deborah M. Kuo, Director, Real Estate of Exelon Corporation and David H. Russian, P.E., Area Manager of Jacques Whitford Company, Inc. at the event, which gathered over 50 real estate attorneys, landlords, tenants and operators.

Exelon has a goal to “reduce, offset or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020,” said Ms. Kuo.  She discussed Exelon’s recent project which consolidated its headquarters from its previous Chicago office space into ten floors of an existing Chicago landmark building.  The headquarters is now recognized as the world’s largest Platinum LEED-CI project, she stated, which is the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) Green Building Rating System(TM) for commercial interiors.

To achieve LEED certification, Ms. Kuo said, it is necessary to develop the right team that has green expertise, understand the LEED checklist and work with landlords to gain cooperation.  Exelon’s outcome of the headquarters project was an attractive, highly functional space which “improved building performance at a cost premium of less than 5%,” Ms. Kuo said.  Based on the energy savings alone, the project will recover the premium in less than 5 years, she concluded.

Mr. Russian discussed the process of “commissioning,” or optimizing building performance by ensuring that operational and maintenance processes are improved.  The benefits of commissioning include energy savings, improved system functioning and improved employee productivity, he said.  Retro-commissioning, or the process of commissioning existing buildings, has a number of benefits, said Mr. Russian, citing a 2004 USDOE study which revealed an average of 15% annual energy savings in retro-commissioned buildings.

There are many benefits in green leasing, said Mr. Grais, including reduced operating costs, faster leasing and higher valuation of the building.  However, landlords harbor many concerns with “greening” a building, as costs can be substantial and no immediate return on the investment is realized, he stated.

Mr Grais also highlighted several features of a green lease, including the need to establish multiple metrics for environmental and energy-related factors such as temperature control and water efficiency.  If one is unable to measure something, he said, one cannot expect to effectively control that factor in a space.  Such metrics, along with other standards included in a green lease, impact how a tenant utilizes the space once in it, said Mr. Grais, which “involves a different relationship between landlord and tenant.”  Some examples that illustrate this impact are a lease which specifies a temperature range for the space, or a landlord that requires tenants to use recyclable furniture or green cleaning products, he said.

Pictured (from left to right): Mr. Russian, Ms. Kuo and Mr. Grais

A Jenner & Block pro bono team was recently honored with a proclamation by Downers Grove Mayor Ronald L. Sandack for its efforts in helping preserve the Blodgett House in Downers Grove, Illinois, which was an active stopover point on the Underground Railroad and helped a number of slaves find their way to freedom. According to the proclamation, "the years leading up to the American Civil War, the Blodgett House was the home of local pioneer family Israel and Avis Blodgett and a well-documented station on the Underground Railroad -- the route leading from slavery to freedom."

Partners Barbara M. Flom, Ronald B. Grais and Michelle M. McAtee, Associate Kris Tina Carlston and former associate Jose R. Rivera provided pro bono legal advice to the Downers Grove Heritage Preservation Corporation, a non-profit formed to preserve the Blodgett House, which was built in 1846 and remains one of the oldest houses in the village. The house is being moved to a site within a public park, and the organization plans to convert the space into a cultural, educational and historic museum focusing on the home’s role in the Underground Railroad. The Firm’s team helped form and tax-qualify the organization, secured the donation of the house, and arranged for its transfer to public land.

"It's a wonderful project that shows the range of assistance we can give to nonprofit organizations in a transactional setting," said Ms. Flom. "It has been a pleasure to work with the Downers Grove Heritage Preservation Corporation on restoring the Blodgett House and we look forward to continued involvement with the organization."

Please click here for more information on the Blodgett House.

Pictured: (standing, from left), Ronald B. Grais, Michelle M. McAtee, (seated, from left) Barbara M. Flom and Kris Tina Carlston.

Jenner & Block Partner Ronald B. Grais discussed green building and construction issues during a panel discussion at the Law Bulletin Seminars 2008 Commercial Real Estate Forecast Conference and Expo held on January 22 in Chicago. During the discussion, panelists focused on high performance standards and incentives for developers to green existing buildings.

Panelists agreed that green building projects have become an issue of increasing importance in the real estate and construction industries. Eric Olsen, City of Chicago’s Green Projects Administrator, said that the organization has seen exponential growth in the amount of permits for green building projects. “We are starting to see more and more private sector projects,” he added.

Mr. Grais emphasized that the green movement will require changes in attitudes and relationships among the professionals involved in development as well between landlord and tenant.  "The landlord-tenant relationship in which the landlord is only concerned with first costs, and the tenant is responsible for operating costs, militates against sustainable development; this relationship will have to be reevaluated and redefined so that both landlord and tenant benefit from investments in sustainable development."

Mr. Olsen, served as the moderator of the event. In addition to Mr. Grais, panelists included Mike Palmer and Frank Pettinati of Perkins & Will, Dan Slack, President, Calamos Real Estate and George Tuhowski, General Superintendent at Leopardo Construction. 

The Expo featured numerous sessions that provided an evaluation of local, regional and national factors that shape the economy and commercial real estate field in 2008 and beyond, including recessionary concerns, the housing market, investment trends and the sub-prime market turmoil.

Mr. Grais is a member of the Firm’s Real Estate and Climate and Clean Technology Law Practices. Mr. Grais has extensive experience in all areas of real estate law, particularly as it relates to the development process. He concentrates his practice on zoning, tax increment financing and commercial and retail leasing. In addition to his law practice, Mr. Grais has been an active real estate developer for more than 20 years and has been responsible for more than a dozen projects, including shopping centers, office buildings and multi-family residential projects.

Pictured from left: Mr. Pettinati, Mr. Palmer, Mr. Grais, Mr. Olsen, Mr. Tuhowksi and Mr. Slack.

Please click here to view the event brochure.

Commercial real estate attorney Ronald B. Grais has joined Jenner & Block’s Chicago Office as a Partner in the Firm’s Real Estate and Climate and Clean Technology Practices.  Mr. Grais has had a distinguished career in all aspects of real estate development and finance with particular expertise in sophisticated mixed use projects in both urban and suburban settings, including the recently completed Center on Halsted and the redevelopment of downtown Des Plaines.

“We are delighted that Ron is joining Jenner & Block,” said Partner Donald I. Resnick, Chair of the Firm’s Real Estate Practice.  “He is an astute and creative problem solver whose experience and reputation in the real estate industry will be an asset to our growing practice.”

Mr. Grais is known for his active leadership in the not-for-profit community and has been recognized nationally for his efforts on behalf of people with disabilities and affordable housing.

From 1982-1990, Mr. Grais was President of the Grais Company, a real estate development, operating and management company which was responsible for 16 successful projects including award winning historic rehabilitation and the development of shopping centers, office buildings, multi-family residential projects and parking garages, such as the “Rolls-Royce of parking garages” at 50 East Lake and One Grand Place at Clark and Grand, both in Chicago, and the Oak Leaves Building in Oak Park.

Before joining Jenner & Block, Mr. Grais was a Principal in Schwartz Cooper Chartered’s Real Estate Development, Acquisitions & Dispositions Practice as well as their Construction Law Practice.

Mr. Grais earned his law degree from the University of Chicago in 1968, where he was associate editor of the University of Chicago Law Review.   He earned his B.A. from Cornell University in 1965.