LED lighting

The Religions of the World Agree: Being Sustainable Is a Moral imperative; So, How Can We Bring the Ecology of Faith Home

PJ PictureBy: Paul L. Jones, CPA
LEED Green Associate
Director, Financial Advisory Services for Emerald Skyline Corporation

“Climate change is the most serious issue facing humanity today. It is already seriously impacting economies, ecosystems, and people worldwide. Left unchecked, it will cause tremendous suffering for all living beings.” From the International Dharma Teachers’ Statement on Climate Change, 1/8/2014

Because creation was entrusted to human stewardship, the natural world is not just a resource to be exploited but also a reality to be respected and even reverenced as a gift and trust from God. It is the task of human beings to care for, preserve and cultivate the treasures of creation.” Saint Pope John Paul II, The Church in Oceania, 2001, n.31

“For the Church of the 21st Century, good ecology is not an optional extra, but a matter of justice. It is therefore central to what it means to be a Christian.” Dr. Rowan Williams, Archbishop of Canterbury, Church Care, Church of England

“We are convinced that there can be no sincere and enduring resolution to the challenge of the ecological crisis and climate change unless the response is concerted and collective, unless the responsibility is shared and accountable, unless we give priority to solidarity and service.” From the Joint message from Pope Francis and Ecumenical Patriarch Bartholomew on the World Day of Prayer for Creation, September 1, 2017

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‘Ecology’ (from the Greek oikos) refers to the Earth as our home; our place of wellbeing. For Christians, ecological stewardship is the conviction that every gift of nature and grace comes from God and that the human person is not the absolute owner of his or her gifts or possessions but rather the trustee or steward of them. These gifts are given in trust for the building of the Kingdom of God. Christians are called to appreciate the spiritual and theological significance of the Earth and to exercise ecological stewardship of the Earth and its resources. The gifts of creation are not simply there for human use, but have their own dignity, value and integrity.

In April 2016, Muslim leaders delivered the Islamic climate change declaration. From an article announcing its’ release, “Islam teaches us that ‘man is simply a steward holding whatever is on earth in trust’,” says Nana Firman, Co-Chair of the Global Muslim Climate Network. “The Declaration calls upon all nations and their leaders to drastically reduce their greenhouse gas emissions and support vulnerable communities, both in addressing the impacts of climate change and in harnessing renewable energy.”

“Mahatma Gandhi urged, ‘You must be the change you wish to see in the world.’ If alive today, he would call upon Hindus to set the example, to change our lifestyle, to simplify our needs and restrain our desires. As one sixth of the human family, Hindus can have a tremendous impact. We can and should take the lead in Earth-friendly living, personal frugality, lower power consumption, alternative energy, sustainable food production and vegetarianism, as well as in evolving technologies that positively address our shared plight.” From the Hindu Declaration on Climate Change

“In the Jewish liturgy there is a prayer called Aleinu in which we ask that the world be soon perfected under the sovereignty of God (le-takein ‘olam  be-malkhut Shaddai). Tikkun ‘olam, the perfecting or the repairing of the world, has become a major theme in modern Jewish social justice theology. It is usually expressed as an activity, which must be done by humans in partnership with God. It is an important concept in light of the task ahead in environmentalism. In our ignorance and our greed, we have damaged the world and silenced many of the voices of the choir of Creation. Now we must fix it. There is no one else to repair it but us.” by Rabbi Lawrence Troster

So, all of the world’s major religions and all of the spiritual leaders of the world agree: Being a faithful steward in the care of His Creation is a religious and spiritual mandate: It is our obligation. But then we see churches that run the air conditioning full blast – when only a few people are present or we witness waste in water consumption, food preparation and other church, school and ecological waste in related parish activities. I think this lack of prioritization among every pastor, priest, rabbi, imam, swami and teacher, not just the leadership of a few, as evidenced by the failure to make every building occupied by a religious or spiritual institution sustainable.

As Saint James tells us “Who is wise and understanding among you? By his good conduct let him show his works in the meekness of Wisdom.” (James 3:13)

Hartford Institute estimates there are roughly 350,000 religious congregations in the United States. This estimate relies on the RCMS 2010 religious congregations census. Of those, about 314,000 are Protestant and other Christian churches, and 24,000 are Catholic and Orthodox churches. Non-Christian religious congregations are estimated at about 12,000.

According to the Catholic Climate Covenant in their presentation on the Catholic Covenant Energies program, “there are an estimated 70,000 Catholic-owned buildings in the United States.” Considering that the Catholic Church represents less than 10% of all religious congregations in the U.S., the opportunity for reducing the carbon footprint through sustainable practices in our churches, synagogues, mosques, schools, day care centers and other facilities operated by religious congregations is enormous. The Covenant calculates that by implementing proven and affordable conservation measures, Catholic-owned buildings can reduce energy use in buildings owned by 25% saving the Catholic Church $630 million in energy costs, “reducing energy use by an equivalent of 8.7 million tons of coal.”

Now, imagine if all faith denominations practiced what they preached – and not just in the United States but throughout the world! The Church and all religious denominations would then make a real – and positive – impact on the lives of all people, reducing suffering and promoting the cause of social justice. Further, the savings from lower utility bills and other sustainable practices can be diverted to core Church ministries like education, youth outreach and the care of the least in their community. Finally, through the implementation of sustainable practices, parishioners would learn how to be sustainable in their personal lives – saving on their utility bills helps the poor afford other necessities – life food or medicine.

So, what is a congregation to do?

In his book, “Inspiring Progress: Religions’ Contributions to Sustainable Development,” Gary Gardner, provides five capacities in which religion can help meet the challenge posed by climate change and sea level rise:

  1. Engage members of faith-based groups
  2. Moral authority – offer ethical guidelines and religious leadership
  3. Provide meaning by shaping world views and new paradigms of well-being
  4. Share physical resources; and
  5. Build community to support sustainable practices

And then there is the key to the Kingdom, be sustainable. Here are some of the most cost-effective steps any parish can take to begin the process of becoming a sustainable religious community. These steps can help reduce energy bills, tackle climate change and build a more sustainable future.

  • Air seal doors, windows and any other drafty locations which reduces the waste of energy used to heat or cool the facility;
  • Employ energy efficiency technology that optimizes energy performance which includes LED lighting, occupancy sensors, and insulating hot water storage tanks.
  • Be prudent in energy use: adjusting the thermostats 1 degree lower in the church, parish hall or other facilities can cut heating costs 5 percent over the course of a heating season. Setting the air-conditioning a few degrees higher has an equal effect; and
  • Improve water use efficiency by using low-flush toilets and urinals in parish facilities, landscaping with plants that don’t require a lot of water, collecting and reusing water for irrigation, employing detection devices to fix leaking pipes and plumbing (Installing high-efficiency plumbing fixtures and appliances can help reduce indoor water use by one-third, saving on water and sewer bills, and cutting energy use by as much as 6 percent);
  • Choose local suppliers and contractors who employ sustainable practices like energy efficiencies and use of “green” products;
  • Identify and employ wider, imaginative ways – like a temporary farmer’s market, reversible accommodation for classes, meetings and other uses to use church properties when not engaged in worship; and
  • Reduce, reuse and recycle.

Then, pewsthere are larger projects – like replacing HVAC equipment and appliances that are near the end of their functional life; adding solar panels, installing a geo-thermal plant, replacing vehicles with fuel-efficient, electric, hybrid or alternative fuel vehicles and encourage use of mass transit, carpooling and telecommuting.

The Catholic Climate Covenant and its sister organization, Catholic Covenant Energies, a non-profit organization which is working with the Archdiocese of Cincinnati and similar for-profit organizations like Commons Energy which is working with the Archdiocese of Vermont are available to provide financing.

Now is the time for our religions to take the lead in bringing sustainable practices to their properties, to their parishes and to their community… From the first letter of Saint John (3:18), “Little children, let us not love in word or talk but in deed and in Truth.”

February LEED Project Update

 

Julie

 

By Julie Lundin, Founder, LEED AP ID+C, NCIDQ, ASID
Director of Sustainable Interior Design for Emerald Skyline Corporation

 

 

Emerald Skyline Corporation in conjunction with Golden Spiral Design, is designing, renovating and repurposing an unoccupied industrial building located in Boca Raton, FL. This building was formerly an auto garage that stood vacant for several years and was environmentally contaminated. Our renovation includes many sustainable features with the intent to obtain LEED certification from the USGBC.

LEED certified building boca raton floridaWe are getting close… to completing the build out of the interior of our project. I would like to share some of the design details and finishes that we have chosen. This building is an old auto garage so we are keeping the existing open floor plan of the main garage space with minimum interior walls being constructed.   The perimeter concrete walls will remain intact without the addition of a drywall finish. The walls have so much character; the imperfections on the concrete block that have accumulated over the years are too interesting to cover up. The walls will be painted and some of the imperfections enhanced with paint layering. The 3 overhead garage door openings have been replaced with impact windows and doors with the center opening now serving as the main entrance.   Since it is important to our design concept to retain as many of the auto garage components as possible we designed this elevation to keep the overhead doors in place behind the new glazing. Manual lift mechanisms have been installed to enable us to raise and lower the garage doors. We are using the roll down doors as large metal shades for both privacy and sun control since the openings are located on the south façade. Broad horizontal stripes will be painted on the interior of the overhead doors to add a bold touch to the space when lowered.

Due to the absence of interior walls we will have an open workspace. Open work spaces can offer important benefits. Our windows and doors are south facing which will allow natural light to filter through the entire office and provide views of the outside. Studies have shown that natural light and views of the outdoors provide occupants attributes of increased patience, productivity and physical health. Open work spaces can be beautiful but do lend themselves to noise issues that need to be addressed in order to function well. Since we are not constructing interior walls, the spaces and their usage will be delineated by furniture and lighting placement. “Floating” furniture and fixtures will create visual separation as well as help control sound transference. The existing concrete floor will remain but be polished and stained. Hard surfaces do a poor job of absorbing sound, so we will be using large area rugs to help minimize noise. The ceiling height is 12 ft. in this portion of the building and is a great architectural element, yet can also contribute to unwanted noise. Once we are in the building and experience the day to day noise levels, additional soft acoustical materials may need to be added. In addition, plants provide sound absorbing capabilities that can work just as effectively in an indoor environment as an outdoor setting as well as provide health benefits, including improving oxygen levels. We may even include a living wall!

Since this is a LEED registered project the specifications for the interior build out as well as exterior choices will contribute to the certification of the building. There are many products available that are not only attractive but have the attributes needed to create a beautiful and sustainable space. Some of our selections include:

  • Low flow toilets and faucets
  • Energy Star Appliances
  • Low VOC paints and finishes
  • Bamboo wood flooring
  • LED Lighting
  • Reuse of demolition materials
  • ChargePoint Electric Vehicle Charging Station
  • Water Collection Cistern
  • HVAC Condensation Drip Lines for exterior vegetation

Two of my favorite sustainable design choices are on the exterior of the building. A recycled glass mosaic of an abstract nautilus shell was created to adorn the south elevation. Metal “green screens” will be attached to the front apex of the building to create a green wall that will add beauty and provide shading to the stucco exterior.

There is still much to be accomplished but we look forward to being in our new space and sharing the completed details and photos with you.

 

LEED Project Update

JulieBy Julie Lundin, Founder, LEED AP ID+C, NCIDQ, ASID
Director of Sustainable Interior Design for Emerald Skyline Corporation

Emerald Skyline Corporation in conjunction with Golden Spiral Design, is designing, renovating and repurposing an unoccupied industrial building located in Boca Raton, FL. This building was formerly an auto garage that stood vacant for several years and was environmentally contaminated. Our renovation includes many sustainable features with the intent to obtain LEED certification from the USGBC.

The above paragraph still holds true months later. However, we have had to re-think the project scope and move forward on a smaller scale. We spent months working on the design and drawings in preparation for submission as a development project. In our original design concept we envisioned a larger building footprint and a second floor addition. Vision often becomes qualified by reality, and our project is no exception. The property size cannot accommodate a larger building footprint and the FAR (floor area ratio) requirements limit the building size allowed. An addition of a partial second floor (FAR compliant) was our solution to the lot size and FAR restrictions. Although only a partial second floor was now being considered it would still require stairs and ideally an elevator. Also, the limited first floor square footage available to accommodate the new stairs and an elevator almost negated the second floor addition. Our conclusion was that adding the partial second floor was not adding the square footage desired, and the cost of construction and engineering did not make economic sense.

In January we made the decision to proceed with the project as a renovation of the existing building only. No additional square footage is being added. Our intent is to repair and replace what is there. The building will visually retain the auto garage industrial look but will be transformed into a sustainable, repurposed space.   As a sustainable consulting firm, it makes sense for us to not increase the size of the building. Our society often believes that bigger is better and we briefly fell into this way of thinking. Now we are committed to working within a limited space and we are re-focusing on creative design and the best use of that space.

As stated in our previous post, this project is a proposed LEED certified building. A key component of a LEED project is its reduced energy use. We have replaced the existing flat roof which was old and leaking with a new roof that has a high SRI (Solar Reflectance Index). We are also designing a high efficiency HVAC system and building envelope to optimize the energy performance of the building. All of the existing windows are being replaced with product that exceeds the Florida Code and are High Velocity, Hurricane Zone approved for Miami-Dade as our project is located in South Florida. In addition, to optimize energy performance in a hot climate our windows have a high VT (visible transmittance) and low SHGC (solar heat gain coefficient) to ensure adequate daylight is being admitted while still blocking significant quantities of solar radiant heat gain.

window radiation

LED lighting fixtures designed with specific task usage will be installed on both the interior and exterior of the building. The existing concrete floors of the auto garage are going to be polished and used as they are. The specifications of the interior finishes are just beginning and as an interior designer, this is the fun part. Low VOC products, adequate air ventilation, and controlled air temperature and humidity will be utilized to protect the buildings IAQ (Indoor Air Quality). Low flow toilets and faucets, and Energy Star appliances will all be specified to reduce the amount of water and energy that is consumed.

We hope to be in our new location by early fall. Once our building is completed we will post descriptions of the renovation details and photos. This project has been a long journey. We are proud that it is a shining example of a correct decision to repurpose a building that might have otherwise been overlooked.

LED Lighting: Both Art and Science

JulieBy Julie Lundin, Founder,
Director of LEED Process Management for Emerald Skyline Corporation

As a registered commercial interior designer and as a LEED AP (Leadership in Energy and Environmental Design Accredited Professional), I balance the aesthetics of lighting, the “art” and the technical knowledge the “science” when finding solutions for our clients project needs. Lighting is for people, so there must be an understanding of the visual quality users need for health, safety, productivity and enjoyment. Combining the needs of people, with the aesthetics desired and the rapidly changing technical knowledge are key when specifying lighting for any project. In addition, today’s buildings also require the need to consider the economics, sustainability and impact on the environment when making our decisions.

“More and more, so it seems to me, light is the beautifier of the building.”
Frank Lloyd Wright – Architect

Whether you are an individual homeowner or a business involved in commercial spaces you have probably noticed the rapidly evolving lighting product market. The standard incandescent bulbs that Edison invented and we all used for years are no longer available. They are being phased out by the federal government. Next, CFL’s (compact fluorescent lights) became the go to option for customers seeking an inexpensive, energy efficient replacement for the standard incandescent bulb. However, CFL’s have had issues with the quality of light which was perceived as harsh by users, they were slow to warm up and difficult to dim, and contain mercury. CFL’s are now also being phased out. General Electric announced earlier this year that they will stop making and selling these bulbs in the U.S. by the end of 2016. “Now is the right time to transition from CFL to LED,” said John Strainic, chief operating officer of consumer and conventional lighting at GE Lighting. Per Mr. Stranic, retailers are also moving away from CFL’s which will have a harder time qualifying for the Energy Star rating under regulations proposed for next year.

Initially LED’s were expensive but gained customer support because they offer better light quality. As with many emerging technical and consumer products, prices for LED bulbs have dropped steadily as manufacturing has increased and the products have been embraced in the mainstream. Manufacturers and retailers have also used coupons and rebates to further bring down the cost. Even as the prices are dropping the technology of LED’s has improved over the years.

There is no denying the energy efficiency of LED’s but other performance factors should be taken into consideration when deciding which product will work best for the intended use.

LED Glossary and Performance Factors

Efficacy – the rating for lumen output per watt, an easy measurable metric that compares the energy consumption and output of different light sources. Per Eric Lind of Lutron Electronics, the efficacy rating is starting to lose its relevance in favor of overall performance measurements. “If I’m trying to evaluate how much it costs to operate a building, lumens per watt is a good measurement,” says Lind. “The challenge is that buildings are there for a purpose and the color and quality of light have an impact on the people inside”.

Color Rendering Index – CRI is a measurement of a light sources accuracy in rendering different colors when compared to a reference light source with the same correlated color temperature. The closer a light source is to a score of 100, the better its color rendering. The higher the CRI, the better the visual perception of colors. Energy Star requires eligible fixtures to use lamps with a CRI above 80.

Lumens – Lumens are the perceived brightness of a lamp (bulb) and one part of a light sources distinct character.

Color Temperature – The other part of a light sources character, color temperature is a description of the warmth or coolness of a light source. Color temperature is measured on the Kelvin scale and is not the ambient hot/cold temperature of our surroundings. Confusingly the Kelvin scale goes backwards, the higher the color temperature, the cooler the light gets and the lower the color temperature, the warmer the light gets.

An example of color temperature application in a commercial building interior, a warmer (i.e. lower color temperature) light is often used in public areas to promote relaxation, while a cooler (higher color temperature) light is used to enhance concentration in offices. Lighting is one of the most important items that should be addressed in every space. An improperly lighted space can cause accidents, eyestrain, impact the occupant mood, and even how people look.

Color temperature and lumens are the new specifications that people need to know when choosing LED lamps.

Watts – Watts are what we used to measure brightness in the use of incandescent and CFL’s. With LED’s, lumens are the indicator of indicator of brightness.

Controllability – the option of changing light levels and color temperature to suit individual needs and important to user satisfaction.

color temperature kelvin scale

LED Lighting Retrofits – The Low Hanging Fruit

In commercial facilities, lighting efficiency improvement is the simplest energy saving strategy, “the low hanging fruit”. Lights consume from 15 to 40 percent of the annual energy use for most buildings and are usually less expensive to change than other systems. Often there is more than energy savings in most lighting improvement projects:

  • Lower Cooling Costs – Lights generate waste heat, improved lighting efficiency can lower your air conditioning costs.
  • Demand Savings – Reducing the amount of electricity used for lighting may reduce peak demand billing costs.
  • Increased Occupant Productivity – Better lighting may permit faster work patterns with fewer errors and increased productivity.
  • Reduced Absenteeism – Improper lighting can cause glare which results in fatigue, headaches and absenteeism.
  • Increase Safety and Security – Proper light levels reduce the possibility of as well as improve the safety of the employees and vehicle traffic. LED retrofits of parking garages and parking lots are important for employee safety and security.
  • Lower Maintenance Costs – LED light sources have a longer lamp life than incandescent and CFL’s resulting in lower lamp replacements and labor costs.

Lighting is one of the most important items that should be addressed in any building. It has the capability to impact the occupants, the cost of operations and the environment. The Emerald Skyline team can assist you with your LED lighting retrofit project resulting in energy savings, lower cooling costs and most importantly occupant health, safety and productivity. Lighting has the ability to positively transform any space, a true blend of art and science.

 

G.E. to Phase out CFL Bulbs

http://www.nytimes.com/2016/02/02/business/energy-environment/ge-to-phase-out-cfl-light-bulbs.html?_r=0

Long Lasting LED Bulbs Now 90% Cheaper

http://time.com/money/3831356/cheap-led-lightbulb-philips/

Industrial Assessment Center – Energy Web Tool

http://iac.missouri.edu/webtool/TaskDocuments/lighting/lighting.html

Welcome to Sustainable Benefits – Let’s begin with the benefits of doing a commercial building sustainable retrofit….

2/12/15

PJ Picture
By Paul L. Jones
, Founder,
Director, Financial Advisory Services for Emerald Skyline Corporation

 

“Who is more foolish: The child afraid of the dark or the man afraid of the light?” (Maurice Freehill, British WW I flying ace).

Figure 1 Empire State Building - LEED Gold

Figure 1 Empire State Building – LEED Gold

Throughout my 36-year career in commercial real estate, commercial buildings have generally been classified from A to C based on location, construction quality and tenancy. Class A buildings represent the cream of the crop. They secure credit-quality tenants, command the highest rents, enjoy premium occupancies, are professionally managed and have a risk profile that supports lower cap rates and higher values. Class B buildings are similar to Class A but are dated yet not functionally obsolete. Class C buildings are generally over 20 years old, are architecturally unattractive, in secondary or tertiary locations and have some functional obsolescence with out-dated building systems and technology. NOTE: No formal international standard exists for classifying a building, but one of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market; a Class A building in one market may not be a Class A building in another.

Based on years analyzing investments in income properties, it appears to me that in the recovery from the Great Recession the commercial real estate market has evolved to include energy efficiency and environmental design as a requirement for improving the marketability of a building – not to mention optimizing its operating income and value.

COMMERCIAL OFFICE BUILDINGS

On December 1, 2014, Buildings.com, in an article entitled “GSA Verifies Impact of Green Facilities,” reported that a study conducted by GSA and the Pacific Northwest Laboratory conducted a post-occupancy study of Federal office buildings, which varied in age and size and had been retrofit to reduce energy and water consumption. The following results were based on a review of one year of operating data and surveys of the occupants which was compared to the national average of commercial buildings: High performance, green buildings:

  • cost 19% less to maintain
  • Use 25% less energy and water
  • Emit 36% fewer carbon dioxide emissions
  • Have a 27% higher rate of occupant satisfaction.

One of the most famous sustainable retrofit projects undertaken was the updating of the 2.85 msf Empire State Building whose ownership directed that sustainability be at the core of the building operations and upgrades implemented as part of the $550 million Empire State ReBuilding program. According to Craig Bloomfield, of Jones Lang LaSalle (JLL), “After the energy efficiency retrofit was underway, JLL led a separate study of the feasibility study of LEED certification” which “showed that LEED Gold certification was within reach at an incremental cost of about $0.25 psf.

Graphics on financial benefits of high-performance buildings

Source: Institute for Market Transformation: Studies consistently show that ENERGY STAR and LEED-certified commercial buildings achieve higher rental rates, sales prices and occupancy rates.

Source: Institute for Market Transformation: Studies consistently show that ENERGY STAR and LEED-certified commercial buildings achieve higher rental rates, sales prices and occupancy rates.

According to the report “Green Building and Property Value” published by the Institute for Market Transformation and the Appraisal Institute, a trend is emerging where green buildings are both capturing higher quality tenants and commanding rent premiums. As indicated by the above graph summarizing four national studies for commercial office buildings back up this trend on rents and occupancy, as “certified green buildings outperform their conventional peers by a wide margin.”

  • According to the EnergyStar.gov website, “Transwestern Commercial Services, a national full-service real estate firm, has generated impressive returns through sound energy management. In 2006, Transwestern invested over $12 million in efficiency upgrades, for an average 25% energy savings. The Company estimates that dedication to energy management has increased the portfolio’s value by at least $344 million.”
  • According to John Bonnell and Jackie Hines of JLL – Phoenix, “In Phoenix, owners of LEED-certified buildings can capture a premium of 29 percent over buildings without this distinction.” The premium for Green buildings had disappeared during the Great Recession and reemergence in the first quarter of 2014 as a result of improving Phoenix market dynamics which is being realized in other major markets as well.

RETAIL

For retail buildings, the tenants are driving the shift to sustainability with green building as consumers become increasingly aware of the environment and the need to reduce, reuse and recycle. According to the “LEED in Motion: Retail” report published by the USGBC in October 2014, “LEED-certified retail locations prioritize human health: among their many health benefits, they have better indoor environmental quality, meaning customers and staff breathe easier and are more comfortable. In a business where customer experience is everything, this is particularly valuable.’ Green retail buildings also out-perform conventional buildings and generate financial savings:

  • On average, Starbucks, which just opened their 500th LEED-certified store, has realized an average savings of 30% in energy usage and 60% less water consumption.
  • McGraw-Hill Construction, which surveyed retail owners, found that green retail buildings realized an average 8% annual savings in operating expenses and a 7% increase in asset value.

It is noteworthy that, according to the third annual Solar Means Business report published by the Solar Energy Industries Association, the top corporate solar user in the United States is Walmart. In fact, almost half of the top-25 solar users are retailers (the others are Kohl’s, Costco, IKEA (9 out of 10 stores are solar powered), Macy’s, Target, Staples, Bed Bath & Beyond, Walgreens, Safeway, Toys ‘R’ Us, and White Rose Foods). Other Top-25 solar users with a significant retail footprint include Apple, L’Oreal, Verizon and AT&T.

In the competitive retail market, the study also noted that being distinguished for pro-active and responsible corporate social responsibility attracts customers and investors.

MULTI-FAMILY BUILDINGS

In a study of 236 apartment complexes conducted by Bright Power and The Stewards of Affordable Housing released last July, 236 properties in two programs, HUD’s nationwide Green Retrofit Program and the Energy Savers program available from Illinois’ Elevate Energy and the Community Investment Corp. One year of pre- and post-retrofit utility bills were analyzed. The researchers found the following:

  • Properties in the Green Retrofit Program had realized a 26% reduction in water consumption – or $95/unit annually.
  • The energy consumption in the Green Retrofit Program was reduced by 18% representing an annual savings of $213/unit.
  • Surveyed buildings in the Energy Savers program had reduced gas consumption by 26% and had reduced excess waste by an average of 47%.
  • The water saving measures in the Green Retrofit program reflected a simple payback period of one year while the energy savings measures had a simple payback period of 15 years.

In an article be Chrissa Pagitsas, Director – Multi-family Green Initiative for Fannie Mae, reports that 17 multifamily properties have achieved Energy Star® certification with two of them, Jeffrey Parkway Apartments in Chicago and ECO Modern Flats in Fayetteville, Arkansas, receiving financing from Fannie Mae.

  • The Eco Modern Flats complex is over 40 years old. With the goal of reducing operating expenses, the project was retrofit in 2010 with energy and water efficiency improvements including low-flow showerheads and faucets, dual flush toilets, ENERGY STAR® certified appliances, efficient lighting, closed-cell insulation, white roofing, solar hot water and low-e windows. As a result of the retrofit, the property achieved a 45% reduction in water consumption, a 23% drop in annual electricity use including a 50% savings in summer electricity consumption while increasing the in-unit amenities, obtaining LEED Platinum certification and increasing occupancy by 30% resulting in a significant increase to Net Operating Income.

Multi-family properties made sustainable gain a competitive advantage in marketing to young professionals and other target audiences who prefer to live in an environment that is healthy and energy-efficient which saves money on utilities.

HOTELS

In a 2014 study conducted by Cornel University, researchers compared the earnings of 93 LEED-certified hotels in the US to 514 non-certified competitors. The study included a mix of franchised, chain and independent facilities in urban and suburban markets with three-quarters of the properties having between 75 and 299 rooms.

The results show that green or sustainable hotels had increased both their Average Daily Rate (ADR) and revenue per available room (RevPAR) with LEED properties reporting an ADR that was $20.00 higher than the non-certified properties (prior to certification, they reported an ADR premium of $169 vs. $160).

The researchers noted that these premiums were realized in price-competitive markets and that the amount of the premium was unexpected. From the results, they concluded that Eco-minded travelers were willing to pay a modest premium to stay at a verified green facility.

Further, the savings realized in electricity and water usage as well as reductions in waste disposal fees and costs as well as reduced maintenance costs go straight to the bottom line resulting in increased Net Operating Income. Here are some examples:

  • The Hampton Inn & Suites, a 94-room facility in Bakersfield, had REC Solar install carport-mounted solar panels which is offsetting 44% of the electricity costs, or up to $8,800/month – adding over $100,000 to the property’s bottom-line.
  • The 80-room Chatwall Hotel in New York completed an LED lighting retrofit project mid-year 2014 which will result in a first year savings of almost $125,000. The cost: just about $1.00 per LED light after rebates.

According to Flex Your Power and ENERGY STAR® statistics, the hospitality industry spends approximately $4 billion on energy annually with electricity, including the HVAC system, accounting for 60% to 70% of utility costs. In fact, excluding labor, energy is typically the largest expense that hoteliers encounter and the fastest growing operating expense in the industry (www.cpr-energy.com). The EPA has concluded that even a 10% improvement in energy efficiency is comparable to realizing a $0.62 and $1.35 increase in ADR for limited service and full service hotels, respectively.

Many studies show that hotels do not realize the full benefit of many energy efficiency measures as guests feel no obligation to employ sustainable practices and wastes the opportunity for savings afforded by the hotel’s energy efficiency measures; however, almost half realize savings in excess of 20% reflecting that many operators have found ways to enlist guest cooperation in saving electricity and water.

According to the US Energy Information Administration (EIA) 2012 Commercial Buildings Survey, the United States had approx. 87.4 billion square feet of floorspace in 5.6 million buildings that were larger than 1,000 sf which also excluded heavy industrial manufacturing facilities. Ninety percent of the buildings that will exist in2035 have already been built – and buildings consume 80% of energy used in cities worldwide and represents almost 20% of all energy consumption in the United States.

Source: US Department of Energy 2013 Renewable Energy Data Book, 1/22/2015

Source: US Department of Energy 2013 Renewable Energy Data Book, 1/22/2015

 

The evidence is clear – building and operating sustainably pays dividends – in improved NOI from cost savings and increased revenues. Attracting higher quality tenants, improving market perception and reducing risk indicates that going Green is becoming a key for maintaining the Class of a building – keys to improving long-term values through lower cap rates.

So, why aren’t more building owners and managers going green? We will seek to discern this matter in our next Sustainable Benefits.