Green Value Green buildings, growing assets a new RICS international report

1
Green ValueGreen buildings, growing assets a
new RICS international report

• A Developers View
• From
• Jim Green MSc MRICS CES
• Baylight Properties RICS Presidential
  Commission on Sustainability

2
Statutory Purpose what you must do

• Planning Compulsory Purchase Act 2004
• The statutory purpose of planning has now become
  the achievement of sustainable development
• Pension Funds Disclosure Regulations must
  publicly reveal ethical environmental stance
  and commit to future improvement
• EU Green Paper 2001 Euro framework for
  accounting standards committing institutions
  companies to CSR TBL

3
The majority of property developers see Green
Buildings

• as an interesting but questionable concept that
  they may have to engage with to obtain planning
  permission and which is likely to both increase
  their costs and reduce their profits
• Not sufficiently profitable not sustainable
• Are they the New Luddites ?
• Still holding on to old technology younger
  generation thinks differently

4
New Orleans the price of inaction?
5
Green Value Study

• RICS- Worlds largest real estate profession.
  117,000 members in 123 countries
• Professional qualifications FRICS, MRICS, CES
• Agenda for Change 2000 16 Faculties inc
  Environment
• Resources - Over 400 publications published
  annually
• Green Value Report
• Commissioned to develop better understanding of
  the linkages between Green Buildings and Value to
  various stakeholders
• Green Value Case Studies
• 18 project reviews including 3 Universities
  featured today
• www.rics.org/greenvalue Exec Summary / Report /
  Case Studies / GreenBuild Conference Atlanta Nov
  2005

6
(No Transcript)
7
Green Value Key Barriers

• Assumption that it costs more to build green
• Knowledge and research not widespread
• Green options are poorly understood
• Steep learning curves
• Construction companies lack experience

• Not seen as business benefit
• Shortage of professionals with suitable
  experience
• Insufficient understanding of value and appraisal
• Outdated regulations
• Perception of risk amongst lenders, funders

8
Green Value Report Conclusions 1

• Cost does not equal value
• Value may exceed cost savings many times focus
  on value as well as costs
• Value is hard to define many benefits
  unquantifiable but undeniable especially
  productivity
• Distribution of costs and benefits of green
  buildings varies significantly occupiers gain
• Number of green buildings is small but growing-
  we are all learning, evidence base needs to grow

9
Productivity Gains

• Adding skylighting to retail store increased
  productivity 40 (Heschong Mahone Gp)
• Conversion energy savings gave payback 4.1 yrs /
  ROI 24 but benefits from lower absenteeism and
  productivity payback 69 days / ROI 540 (Penn.
  Power Light)
• CABE Value of Good Design - hospital eco
  renovation gave 21 improvement in discharge
  rates, care quality, speed, satisfaction, less
  drugs, reduced visits

10
Green Value Conclusions 2Soft Benefits (Value)

• 85 of a buildings real costs are related to
  staff/productivity costs user satisfaction is
  therefore key
• Initial construction costs lt10 of a buildings
  life time costs
• Energy is typically 30 of a buildings operating
  costs
• Increased productivity especially through
  daylighting
• Enhanced health and well-being
• Higher academic achievement
• Higher morale
• Reduced absenteeism
• Image branding and symbolising values
• More data needed to audit and provide reliable
  evidence for these

11
Green Value Conclusions 3

• Limited post-occupancy feedback limits evidence
• Strong ties exist between green building and
  marketing profiles
• Regulatory and financial barriers still exist
• Cost and time of Certification (LEED/BREEAM) is a
  disincentive
• Importance of integrated design processes / chain
  of procurement client-led
• Positive impact on communities

12
Case Study 1 C.K Choi Building, University of
British Columbia
13
Case Study 1 C.K Choi Building, University of
British Columbia

• Institute of Asian Research
• Completed October 1996, _at_2,788 sq m (gross),
  owner occupied
• 5 research centres, conference facilities, FT
  occupancy 100 people / capacity 150
• Construction costs (1578/sq m or 147 psf)
  total _at_ 4.4M
• 44,000 grant to enhance energy efficiency
  private donations 50

14
Choi Building Design Features

• Tree stands to reduce cooling loads
• Internal stack effects (natural ventilation)
• Building forms to enhance day-lighting thereby
  reducing lighting and cooling loads
• Enhanced energy control systems
• Waste heat recovery
• Composting (waterless) toilets
• Rainwater harvesting and Greywater collection for
  irrigation (no sewer connection required)
• Zero ozone depleting substances, low solvent, low
  VOC material specifications

15
Choi Building Project Successes

• Same construction cost as conventional building
• 69 reduction in elec. usage compared to ASHRAE
  standards, saving 191,000 KwH per annum
• High recycled content in building materials
• 60 primary wood structure
• 100 exterior brick cladding
• Positive impact on enrolment and University
  reputation
• Learning points Would have installed a ground
  source heat pump natural ventilation is not
  always easy to manage / better acoustic treatment
  needed for naturally ventilated areas

16
Case Study 2 Liu Centre, University of British
Columbia
17
Case Study 2 Liu Centre, University of British
Columbia

• Completed Sept 2000, 1747 sq m
• Teaching and office areas and public spaces for
  events, conferences
• 37 FT staff
• Cost 1774/sq m / 165 psf _at_ 3.1M total
• No grants

18
Liu Centre Design Features

• All materials and systems based on Life cycle
  assessment and life cycle costing
• High volume of fly ash concrete
• Minimal building width to maximise day-lighting
  for interiors
• Exposed building systems to minimise interior
  finishing requirements
• Free span structure for flexible layouts
• Extensive cycling facilities and showing to
  promote sustainable commuting
• High quality salvaged building materials
• Non toxic paints and adhesives
• Green furniture - board room chairs made from
  recycled pop bottles
• Very low energy and water using fixtures and
  fittings
• Plus many, many more

19
Liu Centre Project Successes

• 92 of previous building on site used as recycled
  content in building materials
• Operating costs lower than for conventional build
• Less constrained budgets due to success of Choi
  Building
• All occupants and users given a manual to
  heighten awareness
• Both C.K.Choi Building and Liu Centre have
  received many International Awards and visits

20
Case Study 3 A.J.Lewis Centre,Oberlin College,
Ohio
21
Case Study 3 A.J. Lewis Centre, Oberlin College,
Ohio

• Completed 1998, 1264 sq.m
• Houses Environmental Studies Programme
• Cost 3,797/sq m / 352, total 4.8M inc 900K
  for Living Machine wastewater treatment _at_ 400K
  and Photovoltaics _at_ 500K (added 20 to total
  costs)
• Expensive but a showcase project funded by family
  trust and insurance company

22
Adam Joseph Lewis Centre Design Features

• 3700 sq feet solar panels (60 electricity
  savings)
• Living machine wastewater treatment system,
  powered by sunlight eliminating need for off-site
  water treatment 80 recycled
• Closed loop geothermal heating and cooling
• Natural landscaping- ponds and wetlands for storm
  water and run-off
• Green maintenance protocol post occupancy
• Learning points Less technical and complex
  systems would have been included 100 fresh air
  ventilation is hard to manage

23
A.J Lewis Centre Project Successes

• Uses 33 electricity compared to other buildings
  on campus
• Operating cost saving exceeded expectations
• Enrolment has significantly increased and
  significant publicity for the College Oberline
  college has become known for best environmental
  studies programme in the USA
• Widespread media interest National Media-
  requires full time staff handling enquiries

24
Implications for UK HEis

• Well designed and implemented buildings can
  deliver
• Reduced whole life costs
• Better functionality for users including those
  who have to maintain
• Involving and understanding user requirements and
  experiences is central to Green Building Design
  often neglected to a significant cost
• The Green Building movement is getting a
  critical mass
• Especially in North America
• Including many US universities

25
Implications for UK HEis

• Green Buildings are moving up the experience
  curve
• Better understanding of what works, and doesnt
• Falling costs for key technologies
• Green building is inevitable
• To respond to climate change and stricter
  regulation
• To improve long term financial and market
  performance of HEis

26
The Way Forward

• The way forward to solve the environmental
  problem is by legislation, education and example
• Brian Edwards RIBA Environment Energy
  Committee

27
HEEPI Town Hall, Leeds 01/12/05RICS - Green
Value Report contact

• Jim Green MSc MRICS CES
• RICS Presidential Comm on Sustainability
• RICS Environment Faculty
• Construction Industry Environl Forum
• jim_at_baylight.co.uk
• 020 7731 9674
• 07771 622217