Green Building Up, Energy Costs and Emmisions Down
Posted on Wednesday, May 16, 2012
By Holly Testa AIF®
According to the Green Building Market and Impact Report by GreenBiz Group, Inc. LEED (Leadership in Energy and Environmental Design) certified buildings now comprise over 20% of new floor area in the United States.
LEED is a certification program developed by the U.S. Green Building Council (USGBC). The program provides building owners and operators with a framework for identifying and implementing practical and measurable green building solutions. It took about 10 years for LEED to hit the 1 billion square foot mark, but at current growth rates, by the end of 2012, an additional 1 billion square feet will have come online in just three years, and that's just in the U.S.
Since its launch in 1998, the LEED certification program has evolved, incorporating new energy efficiency and construction technologies. Buildings built to the newest standards show energy and water savings of roughly 30%. And while building orrenovating to LEED standards may cost more up front, the evidence of long-term financial, environmental, and productivity benefits is mounting.
• Employee Productivity: A study from CB Richard Ellis and the University of San Diego found a self-reported increase in productivity of almost five percent across 500 tenants in 124 buildings. A follow-up study of 75 LEED projects showed productivity gains of nearly five percent, and an average of three fewer sick days taken per worker when businesses move from a non-LEED to a LEED environment.
• Reduced Environmental Impact: LEED promotes reuse of existing buildings and encourages waste reduction, resulting in over 80 million tons of waste being diverted from landfills. Buildings are located to minimize vehicle miles traveled. Minimization of site disturbance, erosion, and storm water run-off are emphasized. There are many buildings that are not LEED certified that are, nevertheless, incorporating standards developed by the program, leading to an overall improvement in building practices.
• Enhanced Building and Rental Values: A recent " green value" study, published in Real Estate Economics, found that green buildings command both a rental premium-4% for Energy Star, and 5% for LEED-as well as a building value premium-26% for Energy Star and 25% for LEED. Other studies confirm these findings, citing similar rent and market premiums.
The Better Buildings Challenge
President Obama joined former President Bill Clinton on December 2,
2011 to announce that $4 billion in private and federal funds will
be invested to upgrade commercial and federal buildings over the
next two years as part of the Department of Energy sponsored
Better Buildings Challenge. Sixty CEOs, mayors, labor leaders
and university presidents pledged $2 billion in capital to make
major upgrades to commercial buildings, and a matching $2 billion
has been made available through a Presidential Memorandum to
finance energy upgrades of federal buildings.
This $4 billion-dollar investment will be paid back quickly through energy savings. The Department of Energy estimates that about 30% of the energy used to power commercial, industrial, and school facilities costs is wasted by failing to implement cost-effective energy technologies. It is estimated that U.S. businesses can save $40 billion a year by improving energy efficiency by the stated goal of 20% by 2020.
The U.S. Treasury Building in Washington, DC is a very recent example of an old building (built between 1836 and 1869) that's been retrofitted to LEED Gold standards. Upgrades have improved daylighting and reduced electricity consumption by 7%, among many other benefits.