Explore the Value of LEED Green Building in the Market Today

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www.torkusa.com Small businesses can be reimbursed up to $25,000 in grants to acquire equipment or adopt processes that promote energy efficiency. In this presentation, Tork shows how to maintain your beautiful building design while still building green. Visit the Tork Better Business Center at betterbusiness.torkusa.com for business tips and advice.

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Exploring the Value of Green Building

Josh Radoff – Principal

Member, Tork Green Hygiene Council

Design & Construction

Business & Operations

Communities

Education & Training

Marketing & Media

YRG sustainability consulting - education - analysis

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

Source: J. Spivey, “ Commercial Real Estate and the Environment,” CoStar, 2008

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

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

Comcast Building

LEED-Gold

One Crescent Drive

LEED-Platinum

Comcast Building

LEED-Gold

One Crescent Drive

LEED-Platinum

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

Valued at almost 90% more per

SF than other buildings in

Philadelphia…

Increased

Productivity

Source: usgbc.org

20%

BETTER TEST

PERFORMANCE

SCHOOLS

EARLIER

DISCHARGE

HOSPITALS

2-16%

PRODUCTIVITY

INCREASE

OFFICES

INCREASE

IN SALES PER

SQUARE FOOT

RETAIL

INCREASED

PRODUCTION

FACTORIES

Orrick Herrington & Sutcliffe – New York City

Office Building Costs

Illustrative Present Value of 20 Years – Green Offices Source: Greening the Built World: Costs Benefits, and Strategies, Greg Kats 2010

$ / S

F

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

Environmentalism Sustainability

Top Line Value

Bottom Line Value

Energy Efficienc

y

Community, Food,

Hygiene, Wellness

Net Zero

Goals & Aspirations

12 LEED

Accredited

Professionals

Our stores are powered by

clean energy

We only build Green stores

Our cups create no waste

• 25% reduction in store energy use (all company-owned

and international licensed/JV)

• 50% of store energy from renewable sources*

• Incorporate green building standards in all new

construction

• 3rd party certification for all company-owned stores

worldwide

• Establish reusable serve ware as global standard for in-

house use

• Tenfold increase in commuter mug usage**

• Maintain 10% PCF content (North America)

• Continue R&D into fully recyclable materials

Aspirations 2010 Goals

* US, Canada, UK, Germany company-owned

** US, Canada, UK, Germany, Japan

Starbucks Commitment

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

Source: New Buildings Institute

What Drives Building Performance?

Tenants

Design Operation

Computers

Equipment

Schedule

Habits

Layout

Integration

Installation

Components

Staffing

Controls

Maintenance

Commissioning

1960-1990

Pre-War 1991 - Present

How Efficient is Your

Building?

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:

$500 fine/quarter ($2,000 per year)

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

www.yrgsustainability.com

Josh Radoff – Principal

Member, Tork Green Hygiene Council

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