Green buildings offer companies the
opportunity to maximize both economic and environmental performance. Potential economic benefits include
reduced operating costs and improved
employee productivity. Environmental
advantages include resource conservation
and improved air and water quality.
The term “green building” can be used to
describe various aspects of a building, says
Norm Bertke, managing director of asset
services for CB Richard Ellis.
“Aspects of green buildings can include
items such as the site that is chosen, the
construction materials selected and the
design of the asset’s infrastructure,” he
explains.
Smart Business spoke with Bertke about
green buildings, the financial benefits that
can be achieved with them and how to get
started in locating a suitable property.
Why are green buildings gaining popularity
in the corporate world?
One reason green buildings are gaining
popularity is simply the cost savings that
can be associated with operating an efficient building. Efficient building systems
result in lower consumption of utilities
and, therefore, cost savings.
There is also data that suggests that
because green buildings are often constructed to mitigate dust and other allergens in the indoor air and efficiently utilize
natural light, the occupants are often
healthier and happier than the occupants
of non-green buildings. This leads to cost
efficiencies for the occupants because of
improved recruiting, reduced sick time and
less turnover.
Finally, many corporations simply think
that being green is the right thing to do and
as long as it is at least cost-neutral, these
corporations prefer to be green.
What are some of the financial benefits that
can be realized from using a green building?
Green buildings often leverage the use of
efficient systems to save on utilities.
Variable-frequency drives offer an improved
ability of the operator to control the heating and air-conditioning system. Flushless
urinals mitigate the use of water. New light
bulb technology allows the lights to burn
more efficiently and last longer. Occupant
sensors allow lights to turn off when the
rooms are not in use. All of these items
reduce utility consumption and lower
costs.
However, the cost implications of lower
turnover and reduced sick days can be
much more significant. Many buildings
operate at approximately $2 per square
foot for utilities. It is reasonable to assume
that it costs an employer $200 per square
foot for personnel-related costs and that
some sales professionals generate $20,000
per square foot occupied in revenue. If an
employer can execute tactics via a green
building to keep their employees on the
job, the payback could be huge.
How do the costs of a green building compare to that of a traditional building?
This is a function of how green do you
want to be and what kind of green? A certified building (one certified by the U.S.
Green Building Council) can have almost
no incremental cost if a green strategy is
implemented from the conceptual phase.
However, if the goal of being as green as possible is executed without factoring
costs, the incremental costs can be significant. In other words, the technology exists,
at a price, to build extremely efficient, environmentally friendly buildings, but there is
a point of diminishing returns as it relates
to a monetary payback.
How much can be saved on energy bills?
If an existing building is already efficient,
sometimes there is little to no additional
savings to realize. However, many buildings can achieve energy savings in the 10
percent to 30 percent range. In many cases,
older buildings can be ‘recommissioned’ or
set back to operate within their original
design parameters to capture savings and
the capital investment associated with new
infrastructure investments is not necessary.
How has energy-saving technology improved
over the past decade or so?
There have been technological improvements in the way HVAC systems operate.
Variable frequency drives allow the operator to turn up or down the rate at which the
systems run. Economizers allow building
equipment to adjust their use of the environment by more efficiently using outside
air to control interior temperatures.
Lighting technology has also improved dramatically with the advent of low-mercury
bulbs, electronic lighting ballasts and occupancy sensors that turn lights on and off
automatically. In the realm of plumbing,
low-flow, auto-flush valves and aerators
allow building operators to decrease their
use of water.
NORM BERTKE is managing director of asset services for CB
Richard Ellis. Reach him at [email protected] or (614)
430-5069.
