Office & cOm mer cial - Existing Buildings Benefit from Going Green Case for New Building Security Paradigm
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Office & Commercial
ATLANTA www.officecommercial.com
real estate magazine Issue 3, 2007
Existing Buildings Benefit
from Going Green
- page 17
Case for New Building
Security Paradigm
- page 30
www.boma-atlanta.org
green suits us
The Value of Green
Utilizing LEED Standards
While the Greg O’Brien, Building Council (USGBC) is the
“value of green” Tom Boeck and logical first step.
may have different Adam Slakman The question is NOT how much
measurements Sustainable Office, LLC more does green COST? A better
based on differing question is how green can we BE with
perspectives, the our given budget?
real estate investment world will always Most “green” or sustainability
calculate the value of green in dollars and consultants today will take a formulaic and
cents. Clearly, the race is on to calculate implementation approach to the analysis.
the potential value increases cautiously What this means is that the consultant
anticipated for the green building industry, will generally look at the building’s current
but real world examples are starting to performance against the LEED for Existing
interviews with management and operations
show results. Building standards and produce a preliminary
personnel are used to determine current
Landlords are scampering to effectively scorecard to show the facilities’ likely current
policy and procedure, as well as to determine
meet and anticipate new demands from performance against the standard. The
the likelihood of corporate buy-in to additional
corporate tenants, as well as governmental analysis may often include recommendations
changes in policy and procedures.
agencies and institutional partners. Design for the implementation of changes that
The analysis may then be tailored for the
firms, FF&E manufacturers, base building may effectively cause the building to score
intent of the client. In buildings where there is a
contractors, engineering firms, interiors higher for a certification, or actually perform
multi-tenant situation and the owner or property
groups, lenders, insurance companies and better day-to-day. However, Sustainable
manager is only interested in hard-cost savings,
occasionally, a real estate broker, are all Office determined early on that to effectively
the analysis may be performed to include only
seeking to position themselves to benefit from audit a building compared to the LEED for
those benefits that produce hard savings like
the potential business growth. Existing Building standards, an analysis
reduced water and energy use. For clients who
But to effectively make “green decisions” needs to be created to properly estimate
are owner-occupiers, and are interested in
in a capitalist society, decision makers need the costs associated with each of the 14
potential productivity gains, the analysis may
be presented to include “soft” benefits, such
as employee productivity and the attraction
and retention of labor. Soft benefits can be
The question is NOT how much more does green COST? A better determined through benchmarks and studies
question is how green can we BE with our given budget? that have already begun to show statistical data
that support productivity and other soft benefits
of green buildings.
to have confidence they have the proper prerequisites and 85 credits. Additionally, LEED-EB Audit Process
information regarding costs and benefits. registration, certification and consulting fees Sustainable Office created the LEED-EB Audit
Additionally, the integrated design approach must all be included to correctly price any process and documentation format to provide
required for effective green development has green building initiatives. owners and managers of buildings with the data
resulted in heretofore unknown offsetting And in order to make greener decisions they need to make good business decisions
costs and benefits that need to be understood better, the potential benefits (from costs relating to sustainable changes in their property.
and related to the financial objectives. savings to revenue generating) for each The audit itself provides an order of magnitude
Clearly, a thorough review of a prerequisite and credit also need to be for costs associated with implementation, but
multimillion dollar investment in relation calculated and articulated. Sustainable also shows the benefits and financial paybacks
to the now widely accepted LEED Green Office uses a sophisticated analysis program that are gained in the process.
Building Rating System standards to identify hard costs associated with The procedure for a LEED-EB Audit is
administered by the United States Green the implementation of changes. Lengthy relatively uncomplicated. The real key is to
Sustainable Office, LLC is a green building consulting firm, providing sustainable portfolio analysis, LEED-EB Audits, LEED Certification, green consulting
and construction management services. Greg O’Brien and Tom Boeck, principals for Sustainable Office, are both LEED Accredited Professionals and have
been featured speakers and consultant across the country in advising the real estate industry on sustainability issues. Adam Slakman provides financial analysis
and project management services as part of Sustainable Office’s service offerings. Greg O’Brien can be reached at gobrien@sustainableofficellc.com.
be sure that the appropriate personnel are 10-year Annual
involved, and information is available. The Initial Cummulative Savings/ Payback
process can be seen in the following few steps. Cost Gross Savings Cost/Ft2 Ft2 Term ROI
1. Meet with property management,
building engineering to view property Certified $314,726 $1,594,700 $0.50 $0.26 2.0 50.7%
2. Perform a work session with the same
personnel to evaluate the building compared Silver $445,009 $2,383,150 $0.71 $0.38 1.9 53.6%
to each prerequisite and credit of the
LEED-EB standard
Gold $1,020,474 $3,741,950 $1.63 $0.60 2.7 36.7%
3. Produce initial building scorecard
Platinum $2,157,774 $6,416,050 $3.45 $1.03 3.4 29.7%
4. Obtain the building’s current Energy
Star score, energy and water usage
information
matrix (see above) to illustrate cost versus LEED-EB Audits in
5. Evaluate data, gather benchmarks and
returns in a quick snapshot view. Notice on Today’s Marketplace
cost estimates for computer analysis
the above example how the Silver level of It is clear, when presented with good
6. Prepare report showing
certification is the optimal and recommended financial information, that green decisions
requirements and opportunities, along with
level, based on real financial information. can be cost-justified. Property owners and
recommendations for implementation,
This information becomes useful for managers will continue to be faced with difficult
including: Net Present Value, Cumulative
communicating decisions to shareholders, as decisions regarding the implementation of
Cash Flow, Energy Performance Analysis and
well as various levels of management within green initiatives as the groundswell for such
Return On Investment
an organization. changes grows. But now, these decisions can
Clearly, communicating with the audit
be made using sound business practices.
recipient becomes a key to their ability to
The Myth: LEED-EB is All The LEED-EB Audit is growing in popularity,
make informed decisions. Charts and graphs
First-costs and the day is coming when such audits will
are used to illustrate points where possible,
One of the other comments that is be required as part of a normal due diligence
along with specific recommendations on
prevalent in the market today is the false process for investors looking to purchase
implementation methods. Below is a chart
assumption that LEED-EB implementation existing buildings, and shareholders will require
that is used to help communicate the
number of credits available, along with the is a costly proposition. We have found that them as back-up for the implementation of
current and recommended performance even for those who look at the information sustainable building initiatives for all existing
areas for the facility. provided above and express concerns buildings within a portfolio.
As you can see in this example, the over first costs, there is an answer. The With existing buildings representing 98%
building performed relatively well, but beneath implementation of LEED for existing of the market in real estate, finding ways to
LEED-EB Certified level requirements. building standards can be implemented improve the inventory and bringing it up to
However, due to the optimization of credit over time, allowing for any changes or sustainable standards becomes even more
versus costs and returns, the recommendation upgrades to be placed in a normal five- important. In order for existing buildings to be
of 16 additional points places this building year maintenance and operations budget, able to compete for tenants in this competitive
squarely within the Silver rating level. thus mitigating any first-cost issues. In real estate environment, LEED-EB Audits will
To further assist decision makers, essence, such an implementation strategy be needed to develop implementation plans
Sustainable Office uses its Value of Green becomes cost neutral. and justify costs for upgrades. OC
Definition of Green — “Design, construction and management practices that significantly
reduce or eliminate the negative impact of buildings on the environment and on the occupants.”
) ) Q)
(SS) preliminary
e (AE s (MR lity (IE (IU)
LEED-EB point SS) s(
E)
(W ph
e r
urc
e a
l Qu sig
n
S ite n cy tmos Reso menta in De
strategy le ie n
(IU) (WE)
i n ab
r E ffic y & A rials & Enviro ation
t a te ner g te oo nnov otals
r
Sus Wa E Ma Ind I T
Available Points Available Points 14 5 23 16 22 5 85
Yes Points Yes Points 5 0 7 7 9 2 30
(IEQ) (AE)
Recommended Recommended Points 4 3 6 3 0 0 16
Points
(MR) Target Totals 9 3 13 10 9 2 46green suits us
A Validation of
High-Performance Buildings
During the past Greg O’Brien responsible AND economically profitable operation of existing buildings
few years, most of LEED Accredited Prof. places to work, live, eat and shop. • Comprehensive in scope; simple in
the press coverage Principal, Sustainable And while the USGBC has developed a operation
and real estate Office, LLC. Senior VP, comprehensive suite of LEED assessment
industry notoriety CRESA Partners tools and rating systems for all aspects of LEED-EB Promotes “Best
in the green the “new” built environment, the LEED for Practices” in these areas
building world Existing Buildings Rating System (LEED- • Exterior building site management
has been focused on newly designed and EB) is distinctly different in that it reflects • Efficient water and energy consumption
constructed structures. However, given both initial redesign and reconstruction, • Waste stream management
the increasing concerns with greenhouse as well as ongoing operations and • Indoor air quality/occupant comfort
gas emissions, enhanced recycling efforts maintenance efforts. • Environmentally safe janitorial services
and healthful awareness of the effects of LEED-EB’s stated purpose is to give
indoor environmental quality on building building owners and operators a third-party The USGBC created and administers
occupants, most experts now agree the validation structure from which to create the LEED-EB Green Building Rating
greatest opportunity to affect positive operations, maintenance and upgrade System as a “voluntary, consensus-based,
and profitable environmental change strategies that focus and measure the market-driven building rating system
throughout the United States is to address economic and environmental performance that is based on accepted energy and
the tens of thousands of existing buildings. objectives of your building(s) and environmental principles and seeks to strike
Since first introducing the Leadership organization. a balance between established practices
in Energy and Environmental Design and emerging concepts.” Compiled by a
(LEED) Green Building Rating System in LEED-EB Overview group of industry experts to compliment
the mid-1990’s as a voluntary standard • Introduced by USGBC in 2004 the LEED for New Construction (LEED-
that defines high performance buildings, • Set of performance-based standards NC) Rating System, LEED-EB was initially
the United States Green Building Council • Includes 14 prerequisites and 85 piloted in 100 various types of buildings
(USGBC) has researched and documented distinct credits to ensure its practicality as a tool for
strategies to create more environmentally • Provides a road map for sustainable achieving sustainability.
Sustainability: “To meet the needs of the present generation
without compromising the ability of future generations to meet their needs”
Levels of certification platinum
Benefits of LEED-EB Certification 85 Total Points Available gold
• Third-party validation of sustainable accomplishments
• Maximize operational efficiencies Silver
• Provide effective benchmarking and verification
CertifieD
• Improved indoor environmental quality
• Positive public relations and enhanced marketability
LEED-EB is a performance-oriented system where credits (aka “points”)
are earned for satisfying specific performance criteria. Different levels of Points 32-39 40-47 48-63 64-85
green building certification are awarded based on the total points earned.Why is LEED-EB becoming widely accepted as the
standard for energy efficiency and environmentally
responsible operations of existing buildings?
According to FMLink, a leading facilities management Web site, green upgrades and
operations are a financially responsible business strategy that leads to a host of additional
Overview of LEED for Existing financial benefits:
Buildings Rating System
• Increase productivity by as much as 10%
The following represent six LEED-
• Increase job satisfaction by as much as 24%
EB categories, which make up the 14 • Reduce absenteeism by as much as 45%
prerequisites and 85 credits available • Reduce utility costs by up to 50%
in this system. Under each listing is a
brief explanation of the USGBC’s stated Additionally, a unique and dynamic set of circumstances are now converging that
environmental objective for that category. The will catapult forward the LEED-EB efforts for corporate and institutionally owned real
prerequisites and credits are then used as the estate facilities. These compelling forces include:
various courses of action to achieve the intent. 1. Increased governmental regulations with regards to the environmental
performance of buildings in general, (with special emphasis on reducing greenhouse
1 Sustainable Sites
2 prerequisites and 14 potential points
gas emissions)
2. Building owners aggressively seeking to improve operating efficiencies to
Intent: Environmentally sensitive site
increase asset values in the face of rising costs
maintenance practices have been proven to
reduce site operation and maintenance costs 3. Corporate America continuing to seek ways to increase profits, improve
while creating and maintaining an outdoor reputations while reducing risk and liability
space that is healthy for building occupants 4. Major players in the design, construction and brokerage industries are
and local plant and wildlife embracing the environmental initiatives and understanding the costs versus benefits
Goals: for various options
• Reuse existing buildings and/or sites
• Protect natural and agricultural areas With over 8,000 projects currently registered with the USGBC for LEED certification
• Support alternative transportation and thousands of real estate professionals now designated as LEED Accredited
• Protect and/or restore natural sites Professionals, the LEED for Existing Buildings system is destined to become the standard
by which all types of buildings will be deemed “high performance and green” or “needs
2 Water Efficiency improvement.” What is your strategy to compete in this arena?
2 prerequisites and 5 potential points
Intent: Maximize the use of strategies and
technologies that reduce the amount of potable
water consumed in buildings
Goals:
• Reduce quantity of water needed
4 Materials and Resources
3 prerequisites and 16 potential points
Goals:
• Establish good indoor air quality
• Eliminate, reduce and manage the
for building Intent: Establish a sustainable building
sources of indoor air pollution
• Reduce municipal water supply operations program with policies that
• Ensure thermal comfort and
and treatment burden describe responsible procurement practices
systems controllability
3 Energy and Atmosphere
3 prerequisites and 23 potential points
and effective waste management strategies
Goals:
• Use materials with less
• Provide for occupant connection to
the outdoor environment
Intent: Verify that fundamental building
environmental impact
systems and assemblies are performing
as intended to meet current needs and
sustainability requirements
• Reduce and manage waste
• Reduce the amount of materials needed
6 Innovation in Upgrades,
Operations and Maintenance
0 prerequisites and 5 potential points
Goals:
• Establish energy efficiency and
system performance
5 Indoor Environmental Quality
4 prerequisites and 22 potential points
Intent: Recognize exemplary performance
in any achieved LEED-EB credit and innovation
in green building NOT addressed by current
• Optimize energy efficiency Intent: Establish minimum indoor air quality
standards OC
• Encourage renewable and alternative (IAQ) performance to enhance indoor air quality
energy sources in the building in order to contribute to the Greg O’Brien can be reached at
• Support ozone protection protocols health and well-being of the building occupants gobrien@sustainableofficellc.comYou can also read
