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The 2010 U.S. Green Building Market

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Presentation given in Dublin, Ireland on July 21, 2010, sponsored by the Green Building Initiative of Enterprise Ireland

Presentation given in Dublin, Ireland on July 21, 2010, sponsored by the Green Building Initiative of Enterprise Ireland

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  • TL: Can we have static slide still readable and printable?
  • The green building industry is making huge strides. According to a study by Capital E, green building save at least 30% in terms of energy, reduce carbon emission by 35%, reduce water use by 30-50% and save costs on waste of 50-90%.
  • Animation
  • Animation
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  • TL: Cost – what is the cost?
  • Transcript

    • 1. Jerry Yudelson Yudelson Associates 2010
    • 2. Jerry Yudelson
      • Green building involvement with USGBC since 1997
      • Author of 12 books on green building subjects since 2005
      • Technical/Marketing Consultant to Fortune 500 companies, real estate investors, software companies, manufacturers and design/construction firms
      • Trained 3500 people in the LEED system since 2001; former USGBC Board member
      • Organized and chaired Greenbuild , largest US Green Building conference and expo, 2001-2009
      • Research scholar for retail real estate sustainability, International Council of Shopping Centers
    • 3. Take-Aways
    • 4. The Big Picture (BP)
    • 5. Green Building Important for Carbon Reduction
    • 6.  
    • 7.  
    • 8. Importance of Building Green
      • In the year 2035, 75% of 2005’s U.S. built environment will be either new or renovated. The U.S. will transform its energy consumption and CO 2 production by constructing & renovating most buildings to green standards.
      McDonalds Corp. HQ
    • 9. Our Opportunity to Build Green Current US building stock is approx. 300 billion sf.
      • Over the next 30 years:
      • 52 billion sf will be demolished
      • 150 billion sf will be remodeled
      • 150 billion sf will be new construction
      Therefore, by the year 2035, three-quarters of building stock will be new or renovated vs. 2005
    • 10. Life Cycle Positive Solution
      • Buildings are the only Life Cycle Cost-positive solution
      • 25% of total carbon solution can come from buildings, including homes, stores, offices, hotels, institutional buildings and other structures
      Choosing Green Choosing Green
    • 11.  
    • 12. Green Building Is Growing Rapidly
    • 13. Green Building Statistics
      • USGBC: 18,000+ members
      • LEED Commercial Projects
        • 28,000 registered (July 2010)
        • 6,000 certified (July 2010)
        • Ave. size ~ 100,000-sq.ft.
      • LEED for Homes
        • 6800 certified, 27,000 registered (June 2010)
      • 155,000+ LEED Accredited Professionals
      OREGON HEALTH & SCIENCE UNIVERSITY “ In God We Trust; All Others Must Bring Data.” -W. Edwards Deming
    • 14. LEED Growth Accelerates!
      • 2005 to 2006: +50% cumulative growth in new LEED registered projects
      • 2006 to 2007: +75%
      • 2007 to 2008: +80%
      • 2009 to 2010: +70%
      New York City $1 billion
    • 15. LEED Growth - Project Registrations
    • 16. LEED Growth – Project Certifications
    • 17. LEED-New Construction Registrations
    • 18. US Green Building Market Projections Source: EL Insights, http://tinyurl.com/2egzhub
    • 19. Business Case for Green
      • Financial/economic return
      • Risk mitigation
      • Marketing/public relations
      • Productivity/health gains
      • Recruitment/retention
      • Sustainability concerns
      Northfield Stapleton , Denver LEED
    • 20. Proven Benefits Absenteeism (15%) Carbon Emissions (35%) Energy Costs (30%) Hospital Stays (2.5 Days ) Waste Management Costs (50-90%) Water Usage (30-50%) Performance on School Tests (20%) Retail Sales Per Square Foot Factory Productivity Office Productivity (2.8-20%) Occupancy Rates (3-4.1%) Rental Rates (up to 174%)
    • 21. CoStar Study Results
      • Energy Star Buildings vs. Peers (~1,000)
      • $2.40/sf Rent Premium!
      • 3.6% Higher Occupancy!
      • Selling for $67/sqm more!
      • LEED Certified Buildings vs. Peers (~360)
      • $11.33/sf Rent Premium!
      • 4.1% Higher Occupancy!
      • Selling for $1870/sqm more!
      Clinton Presidential Library, Little Rock LEED Platinum
    • 22. LEED Rent Premium
    • 23.  
    • 24.  
    • 25. RICS Study Results
      • 2008 Data: 893 certified buildings, 10,000 non-certified within ¼ mile
      • Conclusions:
        • Effective rent 6% higher
        • Sales price 16% higher
        • Green upgrade would add $5.5 million to average value
      Marks & Spencer Plan A
    • 26.
      • Most costs are “people costs”
      • Studies show 3-7% gain in workplace productivity
        • A 1% gain in productivity pays all the energy bills
        • A 10% gain in productivity pays for the entire building (or the technology)!
      Productivity Counts
    • 27. 2010 LEED Predictions
      • New buildings:
        • 10,000+ new LEED project registrations
        • 2000 new project certifications
        • Value of new LEED project registrations in 2010: $100 to $150 billion
      Global Ecology Center, Stanford University
    • 28. Greening Existing Buildings: The Next Big Challenge
      • Must improve existing buildings to meet carbon reduction goals
      • Very cost-effective to cut energy/water use by 30% to 40%
      • Many outstanding examples worldwide
    • 29. LEED-EBOM Registrations
    • 30. Greening Existing Buildings: Next Big Challenge
      • Need to green existing building stock rapidly
      • Huge opportunities, many challenges
      • Over 4,100 LEED-EB buildings registered
        • Avg.: 300,000-sq.ft.
      • Example: CBRE
        • 100 buildings certified
      • Example: Chicago Merchandise Mart
        • 4 million-sq.ft.
      Adobe Systems HQ, San Jose, CA, 1 million-sq.ft. LEED-EB Platinum
    • 31. Empire State Building
      • Key Players:
        • Jones Lang LaSalle
        • Johnson Controls
        • Clinton Climate Initiative
      • Completion: late 2012
        • All projects
      • 38% expected energy savings
      • $4.4 Million Savings!
      • Goal: LEED-EB Gold
    • 32. Urban Water Use
      • Urban water concerns are likely to increase
      • Good design & practice can reduce water use +50% in buildings
      • Retrofits can reduce water use 35% to 75%
      • Australia is the case study, the testing ground
        • 150 liters/capita/day
        • U.S: 150 gallons/cap/day!
    • 33. Greg Kats: Greening Our Built World
      • 14% reduction in CO 2 , 2025 vs. 2005
      • NPV of green building: $650 billion in U.S.
        • 5x to 10x cost premium
      • 2020 Prediction:
        • Green buildings 95% of new construction
        • Green retrofits are 75% of all retrofits
    • 34. 6 Good (Green) Marketing Ideas
      • Differentiate your offerings
      • Become a low-cost provider of products for zero-carbon projects
        • Tout UK/EU experience
      • Educate the market
        • Use available Eco-Labels
      • Bundle green features
        • create branded efficiency, green or renewable products/systems
      • Present the business case better
        • Show full suite of user benefits
      • Become a green brand
        • Existing buildings opportunity
      Helena Apartments, New York City LEED Gold
    • 35. The Future is Green, But…
      • If you want to score, run to where the ball’s headed, not to where it is now.
      • Ask yourself: how green will the built environment be in 2015? What will be the New Normal?
      • Non-performing green buildings will pay a penalty in that market!
    • 36. Conclusions?
      • Green building is here to stay
        • Pace of adoption is accelerating
        • Green buildings & homes
        • Renewable energy & efficiency go with green building
      • Still concern over actual building performance
        • This will be addressed in next 3 to 5 years
        • Buildings will fully integrated using “cloud”: SaaS
      • Expect more green mandates (+200 jurisdictions now)
      • Focus shifting to greening existing buildings
      • Opportunities abound for nimble companies
    • 37. Take-Aways
    • 38. THANK YOU! Jerry Yudelson Yudelson Associates May 2010
    • 39. Further Resources
      • Books by Jerry Yudelson:
      • Dry Run: Preventing the Next Urban Water Crisis (2010)
      • Greening Existing Buildings (2009)
      • Sustainable Retail Development: New Success Strategies (2009)
      • Green Building Trends: Europe (2009)
      • Green Building through Integrated Design (2008)
      • Choosing Green: The Home Buyer’s Guide to Good Green Homes (2008)
      • Green Building: A to Z (2007)
      • The Green Building Revolution (2007)
      • Marketing Green Building Services: Strategies for Success (2007)

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