costar webinar current trends in green 20110621

8/2/2019 CoStar Webinar Current Trends in Green 20110621

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Copyright 2011 CoStar Group, Inc. All Rights Reserved. Although CoStarmakes efforts to ensure the accuracy and reliability of the informationcontained herein, the following information includes projections that arebased on various assumptions by CoStar concerning future events andcircumstances, as well as historical and current data maintained in CoStarsdatabase. Actual results may vary from the projections presented.The information in this presentation is provided as is and CoStar expresslydisclaims any guarantees, representations or warranties of any kind,including those of merchantability and fitness for a particular purpose.


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Webinar Presenters

Anthony Guma, LEED-AP

DirectorCoStar Group, Inc.

Chris Pyke, Ph.D.

Vice President of ResearchU.S. Green Building Council

Copyright 2011 CoStar Group, Inc.

Charles Leitner III

CEO, Greenprint Foundation

Chairman, RREEF


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What We Will Present Today

Chuck Leitner Greenprint Foundation

Chris Pyke Market Update: Energy Efficiency &Existing Buildings

Anthony Guma CoStar Update

Your Questions



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Chuck Leitner



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REDUCING CARBON. BUILDING VALUE.

What isGreenprintFoundation?

WWW.GREENPRINTFOUNDATION.ORG

Greenprint Foundation is a is a worldwide

alliance of leading real estate owners, investors

and financial institutions committed to reducing

carbon emissions across the global property industry.

A catalyst for change, taking meaningful, immediate andmeasurable actions to generate solutions that improveenergy efficiency and create value in property portfolios.

Greenprints mission is to lead the global real estatecommunity toward value-enhancing carbonreduction strategies that support the

Intergovernmental Panel on Climate Change (IPCC)goals for global greenhouse gas stabilization by 2030.


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REDUCING CARBON. BUILDING VALUE.Benefits of Leadership Participation


The Greenprint Indexprovides a consolidated view of itsmembers participating portfolios,detailing their current carbon footprintand providing an importantbenchmark with which to measureprogress in reducing carbonemissions.

Already one of the largest globalmeasurements of real estates carbon

footprint with Volume 1 spanning 36countries and representing 176million square feet (16 million squaremeters) of office, industrial, retail,multi-family and hotel propertiescontaining 35,000 tenants.

Participation in pilot programs

Access to innovative technologies and best operating practices

Increased portfolio values

The following map illustrates the absolute carbon

emissions (Scope 1, 2 and 3), in thousand metric tonnes


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REDUCING CARBON. BUILDING VALUE.Energy Intensity Benchmarking


Energy use intensity focuses on energy efficiency and, in most instances,decreasing energy. intensity reduces greenhouse gas emissions. Increasing energyefficiency in design, renovation and operations is the most accessible and potenttool in property owners toolbox to reduce emissions


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REDUCING CARBON. BUILDING VALUE.The Greenprint Foundation Contribution


Verdantix Review of Greenprint IndexNovember 3, 2010

"Greenprint Foundations greatest innovation lies with the pragmatic and collaborativeapproach adopted by its member pool."

Greenprint Announces Blackstone, Equity Office Properties and TIAA-CREFAs MembersFebruary 7, 2011

Our growing membership further strengthens Greenprints goal of bringing togetherthe worlds leading real estate owners and managers to share best practices andinvestigate emerging technologies.

Greenprint and NRDC Announce AllianceMay 2, 2011

Greenprint Foundation and the NRDCs Center for Market Innovation (CMI)announce the formation of a strategic alliance to work together towards their sharedgoal of promoting meaningful, immediate, measurable and scalable actions by theglobal real estate community to create value for real estate assets by increasingenergy efficiency and reducing carbon emissions.


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Chris Pyke



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Market Update:Energy Efficiency & Existing

Buildings



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Overview

Understanding energy efficiency programs

Patterns and trends in energy efficiency overtime and between markets

Correlations with Energy Star certification

Correlations between benchmarkperformance and supporting energy efficiency

strategies Future considerations for energy efficiency in

commercial real estate


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Energy Efficiency

JCI/IFMA/ULI 5th Annual Global Energy EfficiencySurvey of 4,000 building owners (released 6/17):

Energy management is important: 70% ofmanagers

Primary motivation: energy cost savings Average energy reduction target: 12%

>10% energy price increase: expected by 80%

of owners 39% of building owners: plan to pursue green

certifications for existing buildings in the next

year


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Green Building & Energy Efficiency

Energy efficiency is central to the two most

widely-used labels in commercial real estate

US EPAs Energy Star ProgramFocus on energy efficiency

LEED-EB:O&MFocus on six performance areas, includingSustainable Sites, Energy & Atmosphere, Water

Efficiency, Materials & Resources, IndoorEnvironmental Quality, and Innovation


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Energy & LEED

LEED addresses energy performance differently

across the building life cycle: Building Design & Construction

Reduction in cost compared to a code-compliant

baseline

Existing Building Operations &Maintenance

Operational performance relative to an industrybenchmark, Energy Star


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Focus on LEED-EB:O&M

Operational performance assessed during a

1-year performance period Performance scored against Energy Star

benchmark, i.e., 0-100 metric normalized for

climate and other factors based on astatistical sample of US building stock

EAc1: Energy & Atmosphere Credit #1:Optimized Energy Efficiency Performance


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0

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20

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40

50

60

70

80

65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95

ProjectCount

Energy Star Score

Energy Star Scores for

LEED-EB:O&M Certified Buildings

Source: USGBC


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0

10

20

30

40

50

60

65

70

75

80

85

90

ProjectCount

Energy

StarScore

EB:OM Bldgs - EStar Score EB:OM Bldg Count

LEED-EB: O&M Scores by Market

Source: USGBC


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74 72

8381 82

0

50

100

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0

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1000

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LEEDE

BProjectCount

Energy

StarBldgCount

EStar Bldg Count LEED EB Bldg Count EB:OM Bldgs - EStar Score (avg)

Energy Star and LEED-EB:

O&M Trends

Source: USGBC


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65

70

75

80

85

90

95

0

20

40

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80

100

120

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EnergyStarScore

ProjectCount

Estar Bldg Count EB:OM Bldg Count

EB:OM Bldgs - EStar Score Estar Bldgs - EStar Score

Comparison of Market Activity

Source: USGBC


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Supporting Green Building Strategies

10 strategies tracked in LEED-EB:O&M EAc2.1: Commissioning Investigation and Analysis EAc2.2: Commissioning -- Implementation EAc2.3: Commissioning Ongoing Commissioning EAc3.1: Building Automation System

EAc3.2: System-level Metering EAc4: Renewable Energy IEQc1.3: Increased Ventilation IEQc2.2: Occupant Controlled Lighting IEQc2.3: Thermal Comfort Monitoring IEQc2.4: Daylight and Views


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0%

10%

20%

30%

40%

50%

60%

70%

80%

65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95

Cu

mulative%

ofPossiblePoints

Energy Star Score

EAc2.1

EAc2.2

EAc2.3

EAc3.1

EAc3.2

EAc4

IEQc2.2

IEQc2.3

IEQc2.4

IEQc1.3

Source: USGBC

Cumulative % Earned of Possible

Points per Energy Star Score


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Supporting EE Strategies

Group 1 Higher Association EAc2.1: Commissioning Investigation and Analysis

EAc2.2: Commissioning -- Implementation

EAc3.1: Building Automation System

IEQc2.2: Occupant Controlled Lighting

Group 2 Lower Association EAc2.3: Commissioning Ongoing Commissioning

EAc3.2: System-level Metering

EAc4: Renewable Energy IEQc1.3: Increased Ventilation

IEQc2.3: Thermal Comfort Monitoring

IEQc2.4: Daylight and Views


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Conclusions & Near Future

Increasing interest in energy efficiency andoperating cost reduction

Increasing use of energy and emissionsbenchmarks

Emerging policies requiring energy performancedisclosure

Increasing emphasis on automated data collection

and analysis Increasing focus on continuous improvement and

recertification


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Anthony Guma



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0%

5%

10%

15%

20%

25%

30%

35%

40%

Vacancy - LEED Vacancy - All Office

Vacancy 2010 Q1 - LEED Vacancy 2010 Q1 - All Office

Office Vacancy

Vacancy Rate Office Buildings Class A and B 20,000 SF 1990+

Source: CoStar Group


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LEED Inventory and Absorption


0%

5%

10%

15%

20%

25%

LEED - % of Stock LEED % of Total Absorption


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Office Rent LEED v. non-LEED

Average Rent/SF/YR (2011 Q1) Office Buildings Class A and B 20,000 SF 1990+


$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Rent - LEED Rent - All Office


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0%

5%

10%

15%

20%

25%

30%

35%

Atlanta Chicago Inland Empire Miami Philadelphia

Vacancy - LEED Vacancy - All Industrial

Vacancy Rate (2011 Q1) Industrial Buildings 50,000 SF 1990+


Industrial Vacancy


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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Atlanta Chicago Inland Empire Miami Philadelphia

Rent - LEED Rent - All Industrial

Average Rent/SF/YR (2011 Q1) Industrial Buildings 50,000 SF 1990+


Industrial Rents


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Your Questions


costar webinar current trends in green 20110621

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