HOW TO AVOID A FROZEN VACANT PROPERTY

CHALLENGE

Vacant or abandoned retail property can often take a beating during winter. Few or no tenants
combined with security and weather conditions leave retailers at risk for disaster. If a property is
not properly winterized, property issues such as freeze damage, burst pipes, and flooding can
happen. In situations where there is no one working inside of a building and therefore, nobody is
available to observe the condition of that property during cold spells, freeze damage can occur
unabated and without warning. History has shown that even properties in traditional warmer
locales, including the southeastern U.S., can be victim to dangerous cold temperatures subjecting
these properties to damage caused by temperatures that drop below 32 F (freeze level).

BEST PRACTICE IMPLEMENTED

Managing a vacant retail property through the cold winter months requires consideration of
certain factors:
• Location: Above all, it is a store’s geographic location that is the primary factor in
determining whether it is necessary and when to winterize. Winterization should be
performed in virtually every state in the U.S. The only exceptions are Florida (south of
Jacksonville), Hawaii, Nevada (other than the Reno/Lake Tahoe area), and those Arizona
and California properties located less than 2,000 feet above sea level. This list clearly
indicates that any property that is located in an area in which freezing temperatures can
occur should be winterized.

As far as when to winterize, service must be performed on a newly vacant building
between October 1 and March 31. Previously and newly vacant buildings should be
winterized starting in early September if the property is located in a northern climate. In
many states it is permissible and strongly recommended to winterize all year round. This
list includes: Alaska, Connecticut, Maine, Massachusetts, Michigan, New Hampshire,
New York, Ohio, Pennsylvania, Vermont and more.

• Security: A building must be completely secured before winterizing it. Security should
always be the number one concern for a vacant property. It is especially important during
the wintertime because vagrants may try to access a vacant property for shelter against
the elements, or worse, vandalize the property. Poorly protected or unprotected property
can impact the cost of winterizing a property or lead to freeze damage. It is not
uncommon for water pipes and electrical lines at a vacant property to be stolen for their
copper all year round. If the pipes contain running water during the winter, there will be
significant monetary losses from copper theft as the water will eventually cover the
ground and freeze. Proper winterization stops water from running through the pipes.

• Maintaining Heat: The best protection against freeze damage is maintaining building
heat. A trade-off exists between the risk of freeze damage and the cost to continue
operating heat. In all cases, freeze damage is much more costly then maintaining a
minimal temperature in the building. If the property has a fire suppression system fully
charged with water then it is crucial to make sure heat is maintained in the building to
keep the pipes from freezing. Minimal heat can be as low as 55 to 60 degrees, as long as
many ceiling tiles are propped up to allow air to circulate. Winterizing of the fire
suppression system itself is not recommended and in some municipalities may be illegal.

• Heating Systems: A commercial property maintenance provider can determine what
type of heating system is installed in the building. The type of heating system will
determine the sort of winterization service that should be performed. For example, when
a property has a boiler system that is operational, it is best to leave it up and running.
Draining a boiler can dry out valves causing severe damage and making it problematic
for some boilers once water is restored.

It is important to have a qualified commercial property maintenance supplier determine if
the heating system can hold pressure. It may be necessary to have the supplier make
repairs and code improvements to ensure reliability during the winter.
Partial Winterization: A partial winterization should be performed in cases where a retailer’s
store is part of a multi-tenant building with some occupied units. A partial winterization consists of:

• Maintaining heat in the store because there will still be water in the lines of the vacant
unit(s).

• Setting thermostats to 55 to 60 degrees F.

• Setting the thermostat in the mechanical room or exterior mechanical closet to 65
degrees F.

• Operating an electrical heater in the mechanical room or exterior mechanical closet.

• Propping up ceiling tiles (those without fire sprinkler heads) throughout the store and in
the mechanical room to help the heat circulate above the ceiling.

• Turning the water off to the vacant unit fixtures — commodes, sinks and utility sinks.

• Pouring antifreeze into the fixtures, floor drains and traps. Be certain to use non-toxic
antifreeze.

• Wrapping exterior faucets and exposed water pipes along exterior walls with pipe wrap
insulation. This is not necessary if a frost-free faucet is present.
Documentation and Signage: Written details along with extensive photographs showing the
winterization steps as they are being completed should be used to document the work. In
addition, notices should be posted on the front entrance of the store, all water fixtures and in the
kitchen/break areas, to indicate that the property has been winterized in order to reduce the risk
of the water system being compromised.

Property Checks: Of equal importance to the act of winterizing the vacant store is conducting
periodic follow-up inspections after the winterization to check on the condition of the property.
Property checks are a prudent and inexpensive business decision. Winterized properties can still
incur break-ins, vandalism, copper theft or even the simple use of a faucet or commode by a
vagrant or a broker, thereby inviting the risk of a water system breach. Winterization without
periodic property checks only provides partial protection against the hazards of cold weather.

RESULTS OF THE BEST PRACTICE

Properly winterizing a building and accompanying the winterization service with periodic property
checks virtually eliminates the risk of freeze damage. Proactively taking these property protection
actions lowers insurance risk and ensures that a property retains value. Through the performance
of a winterization service combined with periodic property checks, retailers can sleep easier at
night knowing that their properties in cold weather regions are also resting comfortably all day
and night.

VERIFICATION OF EFFICIENCY AND/OR SAVINGS CAPTURED
There are numerous documented instances of freeze damage to properties. Nearly every retail
facilities maintenance professional can recall an incident of frozen pipes. Most often freeze
damage occurs when a retailer or building owner attempts to save money by choosing not to
winterize a property in the hope that the weather never gets cold enough to freeze, or that they
can transfer the vacant property to a new owner before freezing temperatures occur. Winter
storms cause an average of $1.25 billion in annual losses. The average claim for damage from a
frozen pipe is about $18,000. When comparing the average one-time cost of $650 for a retail
store winterization and the low cost for an occasional inspection to make sure that the
winterization is still intact, clearly it is always best to invest in a professionally managed
winterization program. Better to be safe than sorry.

Commercial Asset Preservation is the premier U.S. provider of general maintenance, repair, day
porter and inspection services for operating and vacant commercial real estate.