Exploring the Value of Green Building

Josh Radoff – Principal

Member, Tork Green Hygiene Council

Design & Construction

Business & Operations

Communities

Education & Training

Marketing & Media

YRG sustainability consulting - education - analysis

Agenda

The Evolving Face of Sustainability

The Role of LEED

Value of Green Buildings

Defining our Ideal and Capturing Value

Stanford Y2E2 Building : Boora Architects Clackamas High School : Boora Architects

Measured Energy Use vs LEED Certification Level

Source: New Buildings Institute

Maintaining Your Beautiful Design

Isn’t LEED so … 2007?

Value of Green Building in Market Today

Source: J. Spivey, “ Commercial Real Estate and the Environment,” CoStar, 2008

Property Characteristics of LEED-Certified, Energy Star,

and Non-Certified Offices – Q1 2008

LEED-certified Non-LEED Difference

Occupancy Rate 92% 88% 4%

Rent /SF $42 $31 $11

Property Value /SF $438 $267 $171

Energy Star Non-Energy Star Difference

Occupancy Rate 92% 88% 4%

Rent /SF $31 $28 $3

Property Value / SF $288 %227 $61

LEED Building Occupancy Rates (NYC) Source: “Does Green Pay Off?” by Norm Miller, July 2008

LEED Building Rental Rates (NYC) Source: “Does Green Pay Off?” by Norm Miller, July 2008

Comcast Building

LEED-Gold

One Crescent Drive

LEED-Platinum

Comcast Building

LEED-Gold

One Crescent Drive

LEED-Platinum

Sustained rents 25% - 50% higher than market rates…

Valued at almost 90% more per

SF than other buildings in

Philadelphia…

Increased

Productivity

Source: usgbc.org

20%

BETTER TEST

PERFORMANCE

SCHOOLS

EARLIER

DISCHARGE

HOSPITALS

2-16%

PRODUCTIVITY

INCREASE

OFFICES

INCREASE

IN SALES PER

SQUARE FOOT

RETAIL

INCREASED

PRODUCTION

FACTORIES

Orrick Herrington & Sutcliffe – New York City

Office Building Costs

Illustrative Present Value of 20 Years – Green Offices Source: Greening the Built World: Costs Benefits, and Strategies, Greg Kats 2010

$ / S

F

PA Incentives

High Performance Building Program

Provides grants (up to $500,000 or 10% of the total eligible building

construction/renovation costs, whichever is less) or loans to help

underwrite the cost premiums associated with the design /

construction or major renovation of high-performance buildings

Small Business Energy Efficiency Grant Program

Reimbursement grants up to $25,000 available to help small

businesses acquire equipment or adopt processes that promote

energy efficiency

Cost Benefit Analysis – Sample Project

The Cooper Union – New York City

Friends Center Philadelphia, PA

Historic Preservation + Sustainability

New York City Hall

Philadelphia Legislation Requires:

LEED-Silver for municipal new construction / major renovation

projects over 10,000 SF

Cool roofs that meet / exceed Energy Star standards on ALL new

construction

Starbucks

Environmentalism Sustainability

Top Line Value

Bottom Line Value

Energy Efficienc

y

Community, Food,

Hygiene, Wellness

Net Zero

Goals & Aspirations

12 LEED

Accredited

Professionals

Our stores are powered by

clean energy

We only build Green stores

Our cups create no waste

• 25% reduction in store energy use (all company-owned

and international licensed/JV)

• 50% of store energy from renewable sources*

• Incorporate green building standards in all new

construction

• 3rd party certification for all company-owned stores

worldwide

• Establish reusable serve ware as global standard for in-

house use

• Tenfold increase in commuter mug usage**

• Maintain 10% PCF content (North America)

• Continue R&D into fully recyclable materials

Aspirations 2010 Goals

* US, Canada, UK, Germany company-owned

** US, Canada, UK, Germany, Japan

Starbucks Commitment

What makes green building

across a portfolio difficult?

http://www.starbucks.com/responsibility/learn-more/goals-and-progress

Cira Centre

SCA Americas Headquarters

The three floors that SCA occupies

are LEED-CI Gold certified

Received the “Livable Buildings

Award 2008” from the University of

California, for being both

ecologically responsible and well-

liked by its users

Extracting Value

Source: New Buildings Institute

What Drives Building Performance?

Tenants

Design Operation

Computers

Equipment

Schedule

Habits

Layout

Integration

Installation

Components

Staffing

Controls

Maintenance

Commissioning

1960-1990

Pre-War 1991 - Present

How Efficient is Your

Building?

Commercial Building Energy Survey (CBECS)

CARS = MPG

APPLIANCES = ENERGY STAR

FOOD = NUTRITION LABEL

BUILDINGS = ???

Image: US Green

Building Council

Benchmarking Commercial and Multi-Family Buildings >50,000 SF

2+ Buildings on lot that together >100,000 SF

Deadline: May 1, 2011

What: Track energy use - all fuels

Track water use data - in case of automatic water

meter

Include tenant data

Public information- EUI; Gross SF

Penalty for Non-Compliance:

$500 fine/quarter ($2,000 per year)

Audits and Retro-commissioning Commercial and Multi-Family Buildings >50,000 SF

Deadline: Sep 1, 2013 to 2022. 201X (X = last digit tax block no)

Who: All Commercial and City buildings > 50,000 SF

What:

ASHRAE level II - every 10 years

Retro-commissioning - every 10 years

Energy Efficiency Report

Recommissioning

the Occupant

What Drives Performance?

Remind People What You Want

Lucid Design Displays

Moving Past LEED Towards Ideal

South Lincoln Redevelopment - Denver, CO

Building Integrated Landscape - Exterior

Access to Fresh Healthy Food

U of O Urban Farm

Rooftop Gardens

Supermarket

Super-duper-market

Zero Mile Produce

Creation of the Guidelines

Net-Zero Energy

National Renewable Energy Lab Research Support Facility

Golden, CO (LEED Platinum)

Oregon Sustainability Center

Portland, OR

Exploring the Value of Green Buildings

www.yrgsustainability.com

Josh Radoff – Principal

Member, Tork Green Hygiene Council