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Green building

 

Not just what but how

Green building is not just about the building itself but about the entire design and construction process, according to Jennifer Miller, a project manager at Rocky Hill–based Solidus Inc., which managed the Seasons and Rockville Bank projects.

Solidus was recently recognized (in The Commercial Real Estate Revolution, by Miller, Strombom, Iammarino, and Black) as a pioneer in the use of a holistic, integrated design process.

With integrated design, everyone involved in the design, construction, and operation of the building collaborates on the project from start to finish. The process usually begins with a “charrette”—a brainstorming meeting of all participants. (Traditional construction brings in designers and contractors sequentially. That means people at the end of the process have no input into the design.) Integrated design also uses a “whole building” approach, to make sure all building systems work in harmony.

Integrated design is considered the most cost-effective and efficient way to build green and pursue LEED certification.

Does green cost more?

The short answer is it can, although typically not as much as people think.

For example, real estate and construction professionals thought achieving energy efficiency would add 17% to costs, whereas “cost studies on actual properties have shown much lower figures,” according to a 2008 report from the World Business Council on Sustainable Development.

Another report (by Davis Langdon, in 2007) said, “Many project teams are building green buildings with little or no added cost and with budgets well within the cost range of [similar] non-green buildings.”

One factor affecting costs is whether green strategies are used from the outset or considered as an afterthought—the latter being more costly.

Cost also depends on the type of building. “For a retail space, it will be less expensive than for a complicated laboratory,” says Renz.

Other cost factors are just how green the building will be and whether LEED certification will be sought. The initial design for Aetna’s Atrium Building, for example, met basic LEED requirements. But the company decided to go for Silver, which meant paying a “modest premium of about 1%,” says Marshall.

According to the commercial real estate information company CoStar Group, a LEED building project costs 2% to 7% more than a conventional building.

“As far as construction costs, building a LEED project has a negligible impact,” says Fletcher Thompson’s Spiegel. “More contractors are now comfortable with it. They see that [working with] green building materials is just like [working with] any other materials.”

What’s more, green materials now cost less than they used to—roughly the same as conventional materials, according to Mark Charette, CEO of Solidus.

Operational savings

A common mistake deters many people from building green: Too much emphasis is placed on ‘first cost,’ the initial investment, rather than life-cycle cost assessments and return on investment, according to the World Business Council’s report.

“First costs (construction costs) might be a little higher, but your operating costs will be greatly reduced,” says Renz.

For Alexion, following LEED standards hasn’t meant a big change in costs, because “Alexion has never taken a low-first-cost approach. With that, your costs for construction can be very low, but you could have a facility with very high operations costs,” says Caron. “If you take a long-term approach, you will get a better return on your investment.”

Rockville Bank’s Manchester branch cost about 10% more than conventional construction, notes Jeamel. “We expect that extra cost will be paid back over a few years in electricity savings and lower water costs.”

Building green added almost 20% to Seasons’ Meriden project, says Wiemert. “But when we did the energy modeling for the space, we found we would break even in seven to 12 years, depending on energy costs. Smaller companies like his, he points out, “will get a payback if they do the project right and use the right consultant.”

Benefits are “huge”

“The benefits you get out of better functioning buildings are huge,” Renz stresses.

A 2008 study by the Government Services Administration found that compared with the average commercial building, its green buildings used 26% less energy, had 13% lower maintenance costs and 27% higher occupant satisfaction, and emitted 33% fewer greenhouse gases.

CoStar Group reported that LEED buildings commanded rents of $11.24 more per square foot than similar non-LEED buildings and had 3.8% greater occupancy rates.

By using less water, green buildings also reduce water usage fees and sewage disposal fees, says Spiegel. Other benefits cited by various surveys include productivity gains, improved health and comfort for occupants, and higher building selling prices.

Alexion’s landlord is happy that they’re following LEED standards for renovation activities, Caron notes. “He’ll have a more valuable building.”

It’s what people want

Many companies are building green in response to the public’s and government’s growing interest in protecting the environment. “Everyone’s looking for ways to be sustainable,” says Charette.

Aetna has become more involved in sustainability because “it’s important to our customers and employees,” says Carter.

Seasons’ decision to build green stemmed from a member’s comment. When the member pointed out they were using Styrofoam cups, “we looked for ones that were environmentally friendly—compostable,” recalls Wiemert. “At about the same time, our new Meriden branch was on the drawing board. We
thought ... why not do more?”

And according to Alexion’s Caron, “From our CEO down, the goal is to have minimal impact on the environment and to have a positive impact on our community,” even if the project takes a little more time. “I’ve never had people willingly wait extra time for a space they’re desperate to occupy. But when they hear it’s going to be LEED, they are willing to wait.”

Diane Friend Edwards is a freelance writer in Thomaston.

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