Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ASHRAE benchmarking presentation by IMT 1-18-2014


Published on

Published in: Real Estate, Technology, Business
  • Be the first to comment

  • Be the first to like this

ASHRAE benchmarking presentation by IMT 1-18-2014

  1. 1. Energy Benchmarking and Disclosure in U.S. Cities Cliff Majersik Executive Director, Institute for Market Transformation @IMTCliff
  2. 2. 2
  3. 3. Building Sector Greenhouse Gas Emissions Percentage of Total Carbon Emissions from Building Sector 75 75 74 70 65 62 51 38 US Chicago Dallas Minneapolis New York City Philadelphia Salt Lake City Washington, DC The building sector is the dominant user of energy and generator of CO2 emissions in the U.S. This is more true in cities due to density.
  4. 4. Link between Codes and Energy Performance Policy Energy Codes Construction Operation Renovation time Energy Performance Policy Operation
  5. 5. Rating and disclosure drives demand and competition
  6. 6. Rental Premiums for Green Commercial Buildings in the US Jackson, 2009 Pivo & Fisher, 2010 Wiley et al., 2010 Fuerst & McAllister, 2011 Eicholtz, 2010
  7. 7. Added Value of ENERGY STAR-Labeled Commercial Buildings in the U.S. Market Wiley et al 2010* 30% Fuerst & McAllister 2009/11 Jackson 2009 25% Pivo & Fischer 2010* AVERAGE PREMIUM Eicholtz et al 2010* 20% 15% 10% 5% 0% RENTAL PRICE SALE PRICE OCCUPANCY RATE
  8. 8. A Virtuous Cycle When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates. 8
  9. 9. U.S. Benchmarking Policy Landscape
  10. 10. Covered Properties New York City Buildings 50k SF+ ~16,000 buildings, 2.5 billion SF San Francisco Buildings 10k SF+ ~2,700 buildings, 205 million SF
  11. 11. NUMBER OF PROPERTIES COVERED ANNUALLY Each year, existing policies will impact more than 51,000 properties Boston 1,600 Chicago 3,500 New York City 15,300 Philadelphia 1,400 Seattle 3,600 Washington State 4,600 Austin 2,800 San Francisco 2,700 Minneapolis 625 Washington, DC 2,000 California 13,600 Source: IMT
  12. 12. BUILDING AREA (IN SQUARE FEET) COVERED ANNUALLY Totaling approximately 5.8 billion SF of floor space in major real estate markets Chicago 900 million SF Boston 250 million SF Philadelphia 244.5 million SF Seattle 295 million SF Washington State 247 million SF Austin 113 million SF California 347 million SF Minneapolis 110 million SF Washington, DC 357 million SF New York City 2.8 billion SF San Francisco 205 million SF Source: IMT
  13. 13. Early Energy Intensity Findings in New York City The poorest performing buildings use 4 to 8 times the energy of the highest performing buildings. By improving the poor performers citywide energy reductions of 18% to 31% could be achieved.
  14. 14. Small Businesses and Job Creation First report documenting job growth from energy benchmarking policies  Profiles of small businesses adding staff and increasing client bases  KEY TAKEAWAY: Financing not the key barrier. Primary issue is demand. 14
  15. 15. Small Businesses and Job Creation “As a Silicon Valley venture capitalist … I tell our green startup companies to focus on San Francisco or New York City. That’s where the action is going to be.” - Elton Sherwin, venture capitalist, senior managing director, Ridgewood Capital “The Greener Greater Buildings Plan has spurred the New York Market to interest and activity around energy efficiency. Over the past year, we have begun working with over 75 million square feet of real estate in New York and over 400 new clients.” - Lindsay Napor McLean, COO, Ecological “When an owner sees a benchmarking score that is lower than expected, they’re a little more receptive to improvements to bring the score up, which in turn lowers their utility costs.” - Kevin Dingle, president, Sustaining Structures 15
  16. 16. Takeaways  Boldest action is in cities - Federal outlook remains uncertain; state and local action to continue  Leading cities are looking beyond disclosure - Integrated policy frameworks emerging with focus on poor performers  Business and professional leadership is key
  17. 17. The Data Access and Transparency Alliance (DATA) is a collaborative effort led by the commercial real estate industry and green building organizations to provide building operators with energy consumption data to advance energy-efficiency and energy cost savings in buildings. More information can be found:
  18. 18. Thank you! Cliff Majersik Executive Director, Institute for Market Transformation Washington, DC @IMTCliff
  19. 19. International Policy Timeline 1997: Denmark requires energy certification for homes and buildings 2004: Norway, part of the European Economic Area, formally agrees to implement the EPBD and building certification requirements 2007: Brazil adopts voluntary building rating regulations that become mandatory in 2012 2010: EPBD Recast The EPBD is recast to strengthen the energy performance requirements for all EU Member States 1999: Australian Capital Territory requires energy certification for homes 1996 1997 1998 1999 2000 2001 2002 2002: The European Parliament adopts the Energy Performance of Buildings Directive (EPBD), requiring all EU Member States to establish mandatory energy certification schemes for homes and buildings 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2008: China adopts a mandatory energy rating program for government buildings. 2008: Turkey adopts a mandatory certification scheme 2010: Australia enacts mandatory energy rating for commercial structures.
  20. 20. Partners of Green Lease Library
  21. 21. Green Lease Leaders Recognition Program Green Lease Leaders is a recognition program developed by, with support from the Institute for Market Transformation (IMT) and the Department of Energy’s Better Buildings Alliance. The Green Lease Leader designation recognizes companies or broker teams that have successfully implemented green lease language into their new or existing leases. The website and application process will be launching this January 2014.