The document discusses the value and metrics of green building design, highlighting statistics on energy performance, LEED certifications, and the benefits of sustainable construction. It presents case studies that showcase energy savings and increased productivity associated with green buildings, while also addressing challenges in corporate sustainability. The content emphasizes the need for improved measurement of value and calls for greater commitment from the commercial real estate sector towards sustainability.

1. Green x Design = ValueTom Hootman, AIA, LEED AP BD+CRNL, Director of SustainabilityChair, USGBC CO Commercial Real Estate Initiative

2. Agenda1. Defining Green Building2. Green Building Marketing Statistics3. Value of Green Building4. Case Studies5. Closing Thoughts

3. Triple Bottom Line

4. Green x Design = Value

5. Metrics

6. ENERGY STAR LabelEPA and DOE ProgramBased on actual energy use100 point rating system

7. ENERGY STAR BuildingsDenver Ranks 4th in the Nation136 Labeled Buildings31.5M Sq Ft$29.6M Cost SavingsData Source: ENERGY STAR

8. LEED CertificationUSGBC ProgramPerformance basedThird party verified

10. LEED-CICommercial Interiors

11. LEED-CILEED-CSCore and Shell

12. LEED-CILEED-CSLEED-NDNeighborhood Development

13. LEED-CILEED-CSLEED-NDLEED-EBOMLEED-EBOMExisting Building: Operations & Maintenance

14. LEED ProjectsGlobally – April 201027,6965,462RegisteredCertifiedData Source: USGBC

15. LEED ProjectsColorado – April 2010652188RegisteredCertifiedData Source: USGBC

16. LEED ProjectsColorado – April 2010LEED-CI45 / 7%LEED-CS69 / 11%LEED-CI37 / 20%LEED-NC85 / 45%xx652188LEED-NC335 / 58%LEED-CS23 / 12%LEED-EB133 / 20%LEED-EB35 / 19%LEED SchoolLEED Retail8 / 4%LEED School26 /4%RegisteredCertifiedData Source: USGBC

17. Green Market for Commercial Construction20-25%201310-12%20082%2005Data Source: McGraw Hill, Green Outlook 2009

18. Green Market for Commercial Construction40%2009 new non-residential starts down 40% over 200740%2009 LEED Registrations up 40% over 2008200%2009 increase in LEED Certified Floor Area over 2008Data Source: Green Market and Impact Report, Rob Watson

19. Life Boat Effect

20. VALUE

21. Adding ValueMission/ BusinessPeopleMarketEnergy/Operations

22. LEED Cost Study1 to 6%LEED premium0.8% or $1/SFAverage soft costsNet present value of predicted energy savings$2 to 10/SFData Source: “Costs and Benefits of LEED-NC in Colorado”, Governor’s Office of Energy, March 2007

23. LEED Cost Study“there is no significant difference in average cost for green buildings as compared to non-green buildings.”Data Source: : “Cost of Green Revisited”, Davis Langdon, July 2007

24. Energy Performance

25. LEED Energy Performance26%LEED Certified buildings compared to non-LEED buildings32%LEED Silver buildings compared to non-LEED buildings44%LEED Gold and Platinum buildings compared to non-LEED buildingsSource: New Buildings Institute, “Energy Performance of LEED for New Construction Buildings”, March 2008

26. Market Performance

27. Perceived Business Benefits to Green Building13.6%Operating cost decreases10.9%Building value increases9.9%Return on investment improves6.4%Occupancy ratio increases6.1%Rent ratio increasesData Source: McGraw Hill Construction 2008

28. LEED Market Value34%Or $10/SF higher rental rates for LEED class A buildings4.2%Lower vacancy rates for LEED office buildings2.5%Lower vacancy rates for LEED buildings – all typesSource: RREEF, “The Greening of US Investment Real Estate”, November 2007

29. LEED Market Value37%Or $11.33/SF higher rental rates for LEED buildings64%Or $171/SF higher sales price for LEED buildings Peer Building Selection Approach)9%Or $24/SF higher sales price for LEED buildings (Hedonic Model Approach)Source:. CoStar Study, March 2008

30. Human Performance

31. 44% of C-level executives believe green buildings help attract and retain employeesSource:. McGraw Hill Construction, 2007 Corporate Real Estate Smart Market Report

32. Health Benefits

33. Health Benefits

34. Health BenefitsHealth Benefits

35. Health Benefits

36. Productivity

37. Productivity

38. RMI Study – Productivity increase of 6% for improvements in thermal control, lighting, acoustics and indoor qualityJohnson Controls Study- 5 to 15% performance impact related to indoor environmental qualityUSGBC Study – West Bend Mutual Insurance increased productivity by 16% from old building to new green building (a $2m value per year).Source: “The Commercial Real Estate Revolution”

39. Office Cost DistributionSource: Carnegie Mellon

40. Office Cost Distribution

41. Office Cost Distribution

42. Productivity Value

43. Business Performance

44. Managing RiskClimate / weather eventsEnergy costsMold / toxic buildingsObsolescence

45. Corporate Social Responsibility

46. Green Branding

47. Sustainability LeadershipCSO

48. Expected Business Benefits from Sustainability Adoption73%Customer retention and attraction71%Drop in operating costs62%Greater productivity61%Employee retention and recruitment39%More tax incentivesData Source:. McGraw Hill, 2009 Greening of Corporate America

49. Challenges to Corporate Sustainability74%Budget (capital and/or operational67%Current economic crisis53%Implementation / operational issues31%Difficulty measuring ROI31%Lack of sufficient tax incentives26%Lack of knowledge base20%Organizational issues / lack of leadershipData Source:. McGraw Hill, 2009 Greening of Corporate America

50. Case Studies

51. 1800 Larimer540,000 SF Office + 4,800 SF Retail + 240,000 SF GaragePursuing LEED-CS Platinum22.6%Energy Savings43.6%Water Use Reduction48%Recycled Content (Core and Shell)

52. 1800 Larimer17,000 SF Landscaped Terrace / Green RoofAccess to TransitUnder Floor Air Distribution (UFAD)Energy savings

53. Increased air quality (38% more fresh air)

54. Individual thermal control1800 LarimerNext Generation Office Building Beyond class AA78% Pre-leased at completionXcel Energy (LEED-CI Platinum)Lower Operational CostEnergy and InsuranceHigher RatesTenants willing to pay more (10-15%)1755 Blake112,725 GSF / 158 Parking SpacesLEED-CS Silver17.9%Energy Savings39.6%Water Use Reduction22%Recycled Content (Core and Shell)

55. 1755 BlakeUnder Floor Air DistributionDaylightingLow Emitting Materials and FinishesGreen Amenities – Workout room / showersGreen Housekeeping

56. 1755 BlakeNext Generation Office Building Appeal to younger workforce87% Leased 75% Leased when openedAccess to Transit Reduces ParkingReduces first cost of structured parkingHigher RatesLoDo and LEED effectNREL Research Support Facility222,000 SFPursuing LEED-NC Platinumand Net Zero Energy100%Energy Savings – Net Zero Energy54.9%Water Use Reduction92.0%Daylight (Regularly Occupied Space)

57. NREL Research Support FacilityOperable WindowsDaylightingThermal Mass / Labyrinth Radiant Heating and CoolingUFAD Ventilation Air

58. NREL Research Support FacilityWorkplace DesignOpen office and low partition height

59. Design for daylighting and passive energyOccupants and OperationOccupants interact with building

60. Wider temperature ranges

61. Low energy ITClosing ThoughtsGet Better at Measuring the Value

62. Closing ThoughtsDemand more from the Commercial Real Estate Sector