Www.gradypridgen.com SIOR Goes Green Triple Bottom Line Benefits of Green Buildings

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SIOR Goes Green

Triple Bottom Line Benefits of Green

Buildings

Triple Green Building Bottom Line Benefits

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Reduced Environmental Impact.Peak Efficiency.Improved Capitalization Rates.Increased Marketability.Higher Lease Rates.Improved Productivity.Reduced Absenteeism.

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Green Buildings are:

Environmentally ResponsibleSmart Site SelectionSustainable Building Components

ProfitableReduces Operating ExpensesReduces Energy usage and costReduces Water & Sewer usage and costReduces Waste Disposal usage and cost

Healthy Places to Live and WorkEnhances ProfitabilityImproves ProductivityReduces Absenteeism


Successful Green ProjectsAlcoa World Headquarters, Pittsburgh PABank of America Headquarters, New York NYDuracell Corporate Headquarters, Bethel CTReebok World Headquarters, Anton, MAToyota Motor Sales USA – South Campus, Torrance CAWal-Mart Supercenter, McKinney TXSan Jose Civic Center, San Jose CASan Mateo County Crime Lab, San Mateo CAEmery University Winship Cancer Institute, Atlanta GAPentagon Athletic Center, Arlington VAThe Dalles Middle School, Dalles ORCity of Seattle Police Support Facility, Seattle WAWells Fargo Financed two Green Buildings for $64 Million

Royal Caribbean Cruises, Springfield ORBanner Bank Building, Boise ID


United States Building Impacts:


12%Water Use

30%GreenhouseGas Emissions

70%ElectricityConsumption

65%WasteOutput

Increased Productivity in Green Buildings

Schools: 20% Better Test PerformanceHospitals: Earlier DischargeRetail: Increase in Sales per Square FootFactories: Increased ProductionOffices: 2-16% Productivity Increase


20%BETTER TESTPERFORMANCE

SCHOOLS

EARLIERDISCHARGE

HOSPITALS

2-16%PRODUCTIVITY

INCREASE

OFFICES

Selection of team members knowledgeable of sustainable green practices is critical


These Team members include:

Commission Agents (VIP)

General Contractors

Architects

Engineers, etc.

Smart Site Selection for Green Buildings

Smart Site Location: Proximity to Existing Infrastructure Protecting Environmental ResourcesProximity to Services, New ConstructionMake Use of Passive Solar Heating/CoolingGrayfield, Brownfield or Adaptive Reuse Site

Compact DevelopmentWalkable: Connections to Surroundings Transportation Oriented: Mass Transit Public TransportationMixed-use (recreation, employment, shopping and living)


Green Broker Building Checklist:High efficiency building envelopeEfficient lighting & window specificationsEfficient HVAC specificationsLow flow bathroom fixturesEfficient Roof Insulation Efficient windowsArchitect experienced with Green building technologiesContractor experienced with Green building technologiesCurrent Recycling programBuilding OrientationElectrical Requirements (Watts / SF): 2 vs 5


Green Broker Building Checklist: cont.Construction Waste Management: Develop and implement a construction waste management plan to reduce the amount of material sent to the landfill.Recycled Content Material: Use materials with recycled content.Use Certified, Salvaged and Engineered Building Materials.Use Water-Permeable Walkways and Parking Areas.Reduce Heat-Island Effect for Roofing and PavingSustainable Property Management


Green Broker Building Checklist: cont.

Low / Zero Volatile Organic Compounds (VOC) Paints, Primers and SealantsFormaldehyde-free CompositeGreen label Certified Floor CoveringExhaust Fans- Bathrooms & KitchensProper VentilationHVAC SizingWater Heaters: Mold Prevention


Green Broker Building Checklist: cont.

Cold Water Pipe InsulationMaterials in Wet AreasBasements and Concrete Slabs: Vapor BarrierWater DrainageIntegrated Pest Management


Green Operations by the Occupants

MonitoringBehaviorLighting

Bathroom Storage Areas (Sensors)Stairwells (Sensors)Unoccupied Areas (Sensors)

WaterElectricalComputer and Office Equipment

Energy Star Phantom Energy

Green Cleaning ProductsRecycling


Average Savings of Green Buildings


Average Savings of Green Buildings

Source:Capital E

ENERGYSAVINGS

30%

CARBONSAVINGS

35%

WATERUSE

SAVINGS30-50%

WASTECOST

SAVINGS50-90%


VALUATION& BRAND

APPRECIATION

INSURANCE

EMPLOYMENT

EQUITY

SECURITYSECURITY

REDUCEDPUBLIC

INFRASTRUCTURE COSTS

Green Building Owner Benefits

Green Building Economic Benefits


A $4 investment per square footin building green netsa $58 benefit per square footover 20 years

$0.50WATER SAVINGS

$1.20EMISSIONS SAVINGS

$5.80ENERGY SAVINGS

$8.50OPERATIONS & MAINTENANCE SAVINGS

$46.00EST. HEALTH & PRODUCTIVITY BENEFITS

COST $4.00 PSF BENEFIT $62.00 PSF Total Benefits

Green Building Operational Benefits

Enhanced Productivity: Reduced AbsenteeismEnhanced RecruitmentImproved Employee Morale

Average Productivity GainsHigh-Performance Lighting Enhances Productivity by 6.7%

Individual Temperature ControlEnhances Productivity by 3.6%


Employees Perceive Value Working in Green Buildings

Overall Environmental BenefitReduced Energy ConsumptionLower Operating CostsHealth BenefitPositive Marketing and PromotionIncreased Productivity


Green Building Community Benefits

Maximizes existing infrastructureReduces environmental impact

Reduces SprawlReduces Air PollutionReduces Water pollutionConserves Raw Materials

Reduces demand on Services: Water, Sewer and Solid Waste

Increases tax base: schools, fire, police, etc.Revitalizes communities


Green Building Cost vs Conventional

New buildings are easier and cheaper to make greenExisting building components

Shell buildingHigh efficiency building envelopCommercial Interiors Multi tenant buildings require phasing as each lease expires


Federal Tax Deductions for Green Buildings:

A federal tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001.*

Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2008.

*See The Energy Policy Act of 2005


Green Building Challenges

First cost vs life cycle costCredibility of benefitsChanging habits


Green Building Financing and Insurance Benefits

The United Kingdom recently required all building as of 2007 to be green.European investment community anticipates 15% higher rents in green building.Existing buildings not easily converted to green experience a considerable reduction in value.Higher cap rates for green building due to:

Mitigation for increasing utility costsHealthier building equates to reduced liability (sick building)Healthier buildings enhance marketability Reduced reserves

Disaster preparedness


Why Go Green?

Improves the environment for our children1450% return for employersIncreased ProductivityDecreased absenteeismHealthier employeesIncreased marketabilityReduced Liability


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Www.gradypridgen.com SIOR Goes Green Triple Bottom Line Benefits of Green Buildings