The Value of Green Certifications and High Performance Buildings. Candice Goldsmith Paladino and Company

Transcription

1 The Value of Green Certifications and High Performance Buildings Candice Goldsmith Paladino and Company

2 Agenda 1. Why Care? 2. Getting Started 3. Case Studies

3 Why Care?

4

5 Business Imperatives Sustainability as an Investor Preference Sustainability as a Tenant & Customer Attractor Sustainability as a Competitive Differentiator

6 Global CO 2 Emission Sources # 1 Buildings # 2 Transportation # 3 Industrial EIA (2006) Emissions of Greenhouse gases in the United States

7 US Resource Use Impacts by Category Buildings 49% Primary energy use* 72% Electricity consumption* 39% CO 2 emissions* 14% Potable water consumption** * EIA (2008) EIA Annual Energy Outlook ** US Geological Survey (2000) 2000 data

8 Value Owner Occupier 30 Year Cost of a Building* 2% Design & Construction (acquisition, design fees, construction costs, LEED certification, marketing) 6% Operation & Maintenance (utilities, maintenance, vacancies) 92% Personnel (salaries, benefits, expenses) *Sustainable Building Technical Manual,

9 Value Tenant This organization allows me to be green in the work place Agree / Neutral / Disagree Benefits Sales Brand Productivity Pride Discretionary effort Retention Recruitment

10 Value Landlord Top Tenant Drivers Affordability/ rental rates Lease terms Efficiency of workspace Building operating efficiency Public transport accessibility Sustainability

11 Value Landlord Green buildings achieve higher rents Green buildings achieve higher occupancy Green buildings have lower operating costs Green buildings achieve higher prices per square foot

12 Value Service Providers

13 Getting Started

14 5 Step Process Form Team Plan Gather Buy-In Align Evaluate

15 5 Step Process 1. Form Your Team 2. Align with Organizational Goals 3. Evaluate Current State 4. Create Your Plan 5. Gather Buy-In

16 1. Form Your Team Green Teams Inter-departmental

17 2. Align With Organizational Goals

18 Sustainability Criteria

19 Market Context

20 3. Evaluate Current State

21 Scan: Buildings Equipment Operations Location Resource Use

22 Scan: Finance ROI Expectations Budget Constraints Incentives

23 Scan: People Experience Capacity Tenant Opportunities

24 4. Create Your Plan Activities, schedule, and budget Remember the intent: Framework to improve building sustainability Not a check-the-box exercise Do what makes sense

25 5. Gather Buy-In Know what you need going in Align with sustainability goals, including financial metrics Find a corporate sponsor

26 One

27 Case Study Pittsburgh Commercial Office Tower

28 1. Form Your Team Building Engineer Property Manager Asset Management Energy Engineer Marketing Leasing Vendors

29 2. Align With Organizational Goals Energy Efficiency Water Efficiency Building Improvements Management Scope LEED

30 3. Evaluate Current State Building tour Meetings and interviews Two weeks

31 4. Create Your Plan Aligned LEED Scorecard Scope, Schedule, Budget

32 LEED Certification - One Certification Strategy Implement & Measure Document

33 5. Gather Buy-In Director of Engineering Formal Corporate Approval Sustainable and Financial Value

34 One to Many

35 Case Study Mid Atlantic Office REIT

36 1. Form Your Team Building Engineer Property Manager Leasing & Marketing Vendors Operations Manager General Manager Director of Engineering Director of PM

37 2. Align With Organizational Goals LEED Certification Energy Efficiency Water Efficiency Fast Low Cost

38 3. Evaluate Current State Building tour Meetings and interviews Phone Interviews Two months

39 Portfolio Assessment Leading Lights Minor Tweaks Major Adaptations

40 Portfolio Assessment 110 Buildings in Portfolio 90 Phone Calls 36 Detailed Analysis 30 Leading Lights

41 4. Create Your Plan Aligned LEED Scorecard per property Scope, Schedule, Budget CLIENT

42 LEED Volume Portfolio Owners with 25+ Buildings Similar building typologies Economies of scale Cost-Effective Streamlined Schedule

43 One-off vs. Volume Certification One- off One- off One- off Volume Certification Strategy Certification Strategy Certification Strategy Pre Certification Implement & Measure Implement & Measure Implement & Measure Implement & Measure Document Document Document Submit Scorecards

44 Business Case $3,500,000 Cumulative Program Management & Certification Costs $3,000,000 $2,500,000 $2,000,000 $1,500,000 One Off Volume $1,000,000 $500,000 $- Break even after 8 th building

45 5. Gather Buy-In Formal Corporate Approval Sustainable and Financial Value Chief Operating Officer

46 Thank You Candice Goldsmith Paladino and Company Ph: Dir: