Exploring the Value of Green Building
                              Josh Radoff – Principal
                 Member, Tork Green Hygiene Council
YRG sustainability
consulting - education - analysis


                                    Design & Construction
                                    Business & Operations
                                            Communities
                                     Education & Training
                                        Marketing & Media
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
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
                                    Source: J. Spivey, “ Commercial Real Estate and the Environment,” CoStar, 2008
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
One Crescent Drive
                   LEED-Platinum




Comcast Building
LEED-Gold
One Crescent Drive
                             LEED-Platinum

                             Valued at almost 90% more per
                             SF than other buildings in
                             Philadelphia…

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




Comcast Building
LEED-Gold
RETAIL                SCHOOLS             HOSPITALS




       INCREASE                20%                EARLIER
     IN SALES PER          BETTER TEST           DISCHARGE
     SQUARE FOOT          PERFORMANCE




                                          Increased
FACTORIES             OFFICES




                                          Productivity
                               2-16%
          INCREASED
                           PRODUCTIVITY
         PRODUCTION
                             INCREASE




                                                      Source: usgbc.org
Orrick Herrington & Sutcliffe – New York City
Office Building Costs
$ / SF




 Illustrative Present Value of 20 Years – Green Offices
                            Source: Greening the Built World: Costs Benefits, and Strategies, Greg Kats 2010
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
Top Line
                                Value
                                                 Community,
                                                   Food,
                                                  Hygiene,
                                                  Wellness




                                      Net Zero
Environmentalism                                 Sustainability


      Energy
     Efficienc
         y

                   Bottom
                   Line Value
Starbucks Commitment
             
      Aspirations                            2010 Goals

      Our stores are powered by • 25% reduction in store energy use (all company-owned
      clean energy                and international licensed/JV)
                                           • 50% of store energy from renewable sources*

                                           • Incorporate green building standards in all new
      We only build Green stores construction
                                           • 3rd party certification for all company-owned stores
                                             worldwide
                                                                                                12 LEED
      Our cups create no waste • Establish reusable serve ware as global standard               Accredited
                                                                                               for in-
                                                                                                Professionals
                                             house use
                                           • Tenfold increase in commuter mug usage**
                                           • Maintain 10% PCF content (North America)
                                           • Continue R&D into fully recyclable materials
 * US, Canada, UK, Germany company-owned
** US, Canada, UK, Germany, Japan


 Goals & Aspirations
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
What Drives Building Performance?
                                             Computers
                                             Equipment
                                             Schedule
       Staffing           Tenants            Habits
      Controls
  Maintenance                                         Layout
Commissioning                                         Integration
                                                      Installation
                  Operation         Design            Components




                                                 Source: New Buildings Institute
How Efficient is Your
Building?


                        1960-1990




Pre-War                 1991 - Present
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:
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
                                         Josh Radoff – Principal
                            Member, Tork Green Hygiene Council

www.yrgsustainability.com

Explore the Value of LEED Green Building in the Market Today