the business case for green building in serbia
DESCRIPTION
The Business Case for Green Building in Eastern Europe. Presentation to Serbia Green Building Council inaugural conference in Belgrade, 23 February 2012.TRANSCRIPT
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Jerry YudelsonYudelson Associates
February 2012
The Business Case for Green
Building
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Take-Aways
Green building is vital for controlling global CO2 production
Green building is here to stay• 45,000 LEED Registered Projects• 130 countries
Benefits are significant for all building types
Water saving next major green focus
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Green Building Important for Carbon Reduction
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Life-Cycle-Cost Positive Solution
Buildings are the only Life Cycle Cost-positive solution
25% of total carbon solution can come from buildings, including homes, stores, offices, hotels, institutional buildings and other structures
EMGP 270 Paris, HQE Certified
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Triple Bottom Line
Profit Financial return Marketing & PR Higher Productivity
Planet Less carbon, waste and
energy and water use
People Job satisfaction Healthy work environment
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Range of Proven Benefits
Absenteeism
Carbon Emissions
Energy Costs
Hospital Stays
WasteManagement Costs
Water UsagePerformance on School Tests
Retail SalesPer Square Foot
FactoryProductivity
Office Productivity
Occupancy Rates
Rental Rates
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Importance of Building Green
By the year 2040, 75% of U.S. buildings will be either new or renovated, vs. 2010 (23 billion m2)In Eastern Europe, focus is likely to be more on greening of interiors, whole building renovations and existing buildings.
40 Grosvenor, London
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Green Building Is Growing Rapidly
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U.S. Green Building Statistics
45,000 LEED registered projects (Jan. 2012)
10,000 LEED certified projects (Jan. 2012)
175,000+ LEED Accredited Professionals
Similar results for UK’s BREEAM; DGNB gaining acceptance
OREGON
HEALTH & SCIENCEUNIVERSITY
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Central/Eastern Europe LEED Activity
Country Cumulative LEED Project Registrations
(through January 2012)
Other Countries
Poland 56 Bulgaria: 7
Hungary 24 Ukraine: 4
Czech Republic 33
Austria 17
Croatia 9
Romania 10
Serbia 10
Slovenia 2
Slovakia 6
Estonia 1
Latvia 1
Total 180
Nokia Jucu Factory, Romania, LEED-NC Gold
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Green Buildings Make Money Sense
Genzyme Corp. Headquarters, Boston, Behnisch Architekten
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Business Case for Green
Financial/economic return
Risk management
Marketing/public relations
Productivity and health
Recruitment and retention
Policy directives
Investor interest is high
Sustainability concerns
TNT Express Headquarters Amsterdam
LEED-NC PlatinumZero Carbon Emissions
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Study Results
Energy Star Buildings vs. Peers
$26/m2 rent premium 3.6% higher occupancy Selling +$66/m2
LEED Certified Buildings vs. Peers
$122/m2 rent premium 4.1% higher occupancy Selling for +$1870/m2!
National Renewable Energy Laboratory, Denver
Zero Net Energy BuildingLEED Platinum
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Q42007 Q42008 Q4200920
22
24
26
28
30
32
34
36
38
31.36 31.43
28.99
3535.45
31.97
30.99 31.25
29.07
Gross RentsOffice, 5 stories plus, 200,000 to 1 Million, Multi-tenant
Source: CoStar
Energy StarLEEDOverall
LEED Rent Premium
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RICS Study Results
Based on 2008 Data: 893
certified U.S. buildings,
10,000 non-certified within
0.4-kmConclusions: Effective rent 6% higher Sales price 16% higher Green upgrade adds
$5.5 million (€4 million) to value
Marks & Spencer Plan A Marks & Spencer Plan A
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Relevance to Central/Eastern Europe
Green building worldwide
Uptake is rapid
Property sector similar in
many European countries
Global companies want
green spaces
Investors want green
buildings
Europark SalzburgGreen Retail Space
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Great Projects – Begin With Great Goals
Hagaporten 3, Stockholm
CSOB Bank, Prague
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Great Projects – Begin With Great Goals
Lintulahti, Helsinki
Solon Corporate HQ, Berlin
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Great Projects – Begin With Great Goals
Wunderlich Haus, Eberswalde, Germany
SAP Call Centre, Galway, Ireland
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Most costs are “people costs”
Studies show 3-7% gain in workplace productivity
A 1% gain in productivity pays all the energy bills
A 10% gain in productivity pays for the entire building (or the technology)!
Productivity Counts
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Marketing and Public Relations
BREEAM, LEED, DGNB
Ideal tools
Many European projects registered under US LEED
Save energy, water, waste disposal costs
Create green brand
Low-cost options available
RWE Essen, Ingenhoven Architekten
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Greening Existing Buildings: The Next Big Challenge
63 million m2 certified
Largest LEED system
International registrations up 22% in 2011
Also covers major renovations
Hines, 26,000 m2
Hines, Stuttgart, GermanyLEED Core and Shell Gold
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What Does This Mean in Eastern Europe?
Green certifications add value
Re-brand older spaces
Large global companies want green office space
Payback/ROI ~1-2 years
Prevent value erosion of existing holdings
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Water the Next Big Issue
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Preventing Urban Water Crises
• Urban water crises are likely to increase
• Good design & practice can reduce water use +50% in buildings
• Retrofits can reduce water use 35% to 75%
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Water Design Standards
• Control site irrigation & cooling tower water use
• Look at entire water cycle– Match quality with end use
• U.S. good practice– 600 L/m2/year
• Australian best practices:– 400 L/m2/a
• German averages:– 200 L/m2/a
Nuremburg, Germany
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Future of Green Buildings in CEE
Tenant demand + superiorenvironmental performance are major driving factors in making green buildings mainstream. However, stricter government regulation in the EU is likely to be the main reason for green buildings to become the de-facto standard for new + renovated buildings in 10 years.--Deutsche Bank Research, April 12, 2010.
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Take-Aways
Green building is vital for controlling global CO2 production
Green building is here to stay• 45,000 LEED Registered Projects• 130 countries
Benefits are significant for all building types
Water saving next major green focus
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The Future is Green, But…
If you want to score, run to where the ball is headed, not to where it is.
Ask yourself and your clients: how green will the built environment be in 2015 to 2020?
Non-performing green buildings will pay a penalty in that market!
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Jerry YudelsonYudelson AssociatesFebruary 2012
ОДЛИЧНО!