Business Case for Green Development in Middle East

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Business case for green building in the Middle East. Presentation in Doha, Qatar in April 2010.

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  • TL: Clarify: Growth is still annual 50% rate in 2009
  • TL: Per: NAED_Western_Region_2009_Yudelson We could merge this data with the previous slide. Do we need a new photo or was this one ok. It will take some work to generate a new pic, doable, but it takes some time. RRR
  • Business Case for Green Development in Middle East

    1. 1. Jerry Yudelson Yudelson Associates April 2010
    2. 2. Take-Aways
    3. 3. Green Building Important for Carbon Reduction
    4. 4. Life-Cycle-Cost Positive Solution <ul><li>Buildings are the only Life Cycle Cost-positive solution </li></ul><ul><li>25% of total carbon solution can come from buildings, including homes, stores, offices, hotels, institutional buildings and other structures </li></ul>Choosing Green Choosing Green
    5. 5. Triple Bottom Line <ul><li>Profit </li></ul><ul><ul><li>Financial return </li></ul></ul><ul><ul><li>Marketing & PR </li></ul></ul><ul><ul><li>Higher Productivity </li></ul></ul><ul><li>Planet </li></ul><ul><ul><li>Less carbon, waste and energy and water use </li></ul></ul><ul><li>People </li></ul><ul><ul><li>Job satisfaction </li></ul></ul><ul><ul><li>Healthy work environment </li></ul></ul>
    6. 6. Range of Proven Benefits Absenteeism Carbon Emissions Energy Costs Hospital Stays Waste Management Costs Water Usage Performance on School Tests Retail Sales Per Square Foot Factory Productivity Office Productivity Occupancy Rates Rental Rates
    7. 7. Importance of Building Green <ul><li>In the year 2035, 75% of U.S. buildings will be either new or renovated, vs. 2005. For the Middle East the percentage is even higher. </li></ul>McDonalds Corp. HQ
    8. 8. Green Building Is Growing Rapidly
    9. 9. Green Building Statistics <ul><li>USGBC: 18,000+ corporate members </li></ul><ul><li>25,000 LEED registered projects (Jan. 2010) </li></ul><ul><li>4,000 LEED certified projects (Jan. 2010) </li></ul><ul><li>140,000+ LEED Accredited Professionals </li></ul>OREGON HEALTH & SCIENCE UNIVERSITY
    10. 10. LEED Growth - Project Registrations
    11. 11. Green Buildings Make Money Sense
    12. 12. Business Case for Green <ul><li>Financial/Economic Return </li></ul><ul><li>Risk management </li></ul><ul><li>Marketing and public relations </li></ul><ul><li>Productivity/health gains </li></ul><ul><li>Recruitment and retention </li></ul><ul><li>Sustainability concerns </li></ul><ul><li>Policy directives </li></ul>Omnicom Media Group Dubai Media City LEED
    13. 13. Study Results <ul><li>Energy Star Buildings vs. Peers </li></ul><ul><ul><li>$26/m2 rent premium </li></ul></ul><ul><ul><li>3.6% higher occupancy </li></ul></ul><ul><ul><li>Selling for $66/m2 </li></ul></ul><ul><li>LEED Certified Buildings vs. Peers </li></ul><ul><ul><li>$122/m2 rent premium </li></ul></ul><ul><ul><li>4.1% higher occupancy </li></ul></ul><ul><ul><li>Selling for $1870/m2 more! </li></ul></ul>Clinton Presidential Library Arkansas , LEED
    14. 14. Marketing and Public Relations <ul><li>QSAS, Emirates LEED </li></ul><ul><ul><li>Ideal tool </li></ul></ul><ul><li>500 GCC projects registered under US LEED </li></ul><ul><li>Save energy, water, waste disposal costs </li></ul><ul><li>Create green brand </li></ul><ul><li>Low-cost options available </li></ul>Pacific Controls, Dubai 1 st LEED Platinum Building
    15. 15. <ul><li>Most costs are “people costs” </li></ul><ul><li>Studies show 3-7% gain in workplace productivity </li></ul><ul><ul><li>A 1% gain in productivity pays all the energy bills </li></ul></ul><ul><ul><li>A 10% gain in productivity pays for the entire building (or the technology)! </li></ul></ul>Productivity Counts
    16. 16. Green Branding <ul><li>LEED-CI ideal tool </li></ul><ul><li>Certify interior fit-out </li></ul><ul><li>Save energy, water, waste costs </li></ul><ul><li>Example: ABN AMRO, LEED Gold, Dubai </li></ul><ul><li>Payback possible within one year! </li></ul><ul><li>Low-cost green option </li></ul>LEED-CI Gold Office, Dubai
    17. 17. Greening Existing Buildings: The Next Big Challenge <ul><li>Over 4,100 LEED-EB buildings registered </li></ul><ul><ul><li>2,100 in 2009 alone! </li></ul></ul><ul><li>Also major renovations </li></ul><ul><li>Hines Postquartier Stuttgart, Germany </li></ul><ul><ul><li>26,000 sq. meters </li></ul></ul><ul><ul><li>9,800 sq.m. retail </li></ul></ul>Hines, Stuttgart, LEED Core and Shell Gold Pre-certification
    18. 18. What Does This Mean Here? <ul><li>Green certifications add value </li></ul><ul><li>Large global companies want green office space </li></ul><ul><li>Save on energy, water, costs </li></ul><ul><li>Payback within 1-2 years </li></ul><ul><li>Prevent value erosion </li></ul>
    19. 19. Urban Water Use <ul><li>Urban water concerns are likely to increase </li></ul><ul><li>Good design & practice can reduce water use +50% in buildings </li></ul><ul><li>Retrofits can reduce water use 35% to 75% </li></ul><ul><li>Australia is the case study, the testing ground </li></ul><ul><ul><li>150 liters/capita/day </li></ul></ul><ul><ul><li>U.S: 150 gallons/cap/day! </li></ul></ul>
    20. 20. Water Design Standards <ul><li>Control irrigation/cooling tower water use </li></ul><ul><li>Look at entire water cycle </li></ul><ul><ul><li>Match quality with use </li></ul></ul><ul><ul><li>Gray water for cooling </li></ul></ul><ul><li>U.S. good practice </li></ul><ul><ul><li>600 l/m2/year </li></ul></ul><ul><li>Australian best practices: </li></ul><ul><ul><li>400 l/m2/a </li></ul></ul><ul><ul><ul><li>No cooling tower </li></ul></ul></ul><ul><li>German averages : </li></ul><ul><ul><li>200 l/m2/a </li></ul></ul>
    21. 21. The Future is Green, But… <ul><li>If you want to score, run to where the ball is headed, not to where it is. </li></ul><ul><li>Ask yourself: how green will the built environment be in 2015? What will be the New Normal? </li></ul><ul><li>Non-performing green buildings will pay a penalty in that market! </li></ul>
    22. 22. THANK YOU! Jerry Yudelson Yudelson Associates April 2010

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