green

Emerald Skyline Partners with Trex Fencing to Provide Technologically Advanced Eco-Friendly Composite Fencing Solutions

Posted on by abrahamwien18

South Florida-based Emerald Skyline brings the strength of wood without the maintenance to commercial fencing.

“We haven’t felled one tree in the making of Trex high-performance composite fencing. Ever.”

June 9, 2017 from Emerald Skyline Corporation (www.emeraldskyline.com)

BOCA RATON, FL, June 9, 2017 – FOR IMMEDIATE RELEASE

Today, Emerald Skyline announced that it has partnered with Trex Fencing to provide revolutionary eco-friendly composite fencing solutions that offer privacy as well as durability for commercial and industrial properties. Together, we offer high performance and low maintenance privacy resolutions.

Trex Seclusions® are composed of 96% recycled wood and plastic and are manufactured in a facility that uses an eco-friendly processing method that eliminates the use of smoke stacks. In fact, the average 100-linear foot Trex composite fence contains 140,000 recycled plastic bags, making Trex one of the largest plastic bag recyclers in the United States.

This high-performance product never needs painting or staining, resists insect damage and won’t warp, rot, or splinter. The interlocking picket system installs quickly and easily and is strong enough to withstand winds up to 130 mph, passing the Miami/Dade wind load certification tests—making this an excellent choice for property owners in South Florida.

The durability and strength of this fencing system is only surpassed by its aesthetic beauty—available in three rich, natural colors that compliment any landscape. The interconnecting pickets have a clean, finished appearance on both sides with no structural boards visible inside or out. Additionally, this system offers true privacy with no gaps between pickets.

“We are always looking for ways to provide superior products and services to meet our clients sustainability and resiliency needs. We are pleased to add TREX Fencing to ChargePoint EV charging stations and Blue Pillar Internet of Things powered by Aurora to the quality products Emerald Skyline provides to our clients and customers.” reports Abraham Wien, LEED AP O+M, Director of Architecture & Environmental Design for Emerald Skyline.

For more than two decades, Trex has invented, defined, and perfected the composite deck category, becoming the world’s largest manufacturer of wood-alternative decking products. Never content to settle, they continue to make strides in outdoor engineering, melding innovation with environmental responsibility and beautiful form with powerful function. Trex is the first company to combine the durability of recycled plastic with the natural beauty of reclaimed wood.

To find out more information about Trex fencing solutions at your building or facility, please contact Abraham Wien at [email protected] or call us 305.424.8704.

Water Conservation Tips from National Geographic

Posted on by abrahamwien18

In honor of Earth Day, we wanted to share some water conservation tips that make it easy for everyone to do their part.

Toilets, Taps, Showers, Laundry, and Dishes

  • 1994 was the year that federally mandated low-flow showerheads, faucets, and toilets started to appear on the scene in significant numbers.
  • On average, 10 gallons per day of your water footprint (or 14% of your indoor use) is lost to leaks. Short of installing new water-efficient fixtures, one of the easiest, most effective ways to cut your footprint is by repairing leaky faucets and toilets.
  • If you use a low-flow showerhead, you can save 15 gallons of water during a 10-minute shower.
  • Every time you shave minutes off your use of hot water, you also save energy and keep dollars in your pocket.
  • It takes about 70 gallons of water to fill a bathtub, so showers are generally the more water-efficient way to bathe.
  • All of those flushes can add up to nearly 20 gallons a day down the toilet. If you still have a standard toilet, which uses close to 3.5 gallons a flush, you can save by retrofitting or filling your tank with something that will displace some of that water, such as a brick.
  • Most front-loading machines are energy- and water-efficient, using just over 20 gallons a load, while most top-loading machines, unless they are energy-efficient, use 40 gallons per load.
  • Nearly 22% of indoor home water use comes from doing laundry. Save water by making sure to adjust the settings on your machine to the proper load size.
  • Dishwashing is a relatively small part of your water footprint—less than 2% of indoor use—but there are always ways to conserve. Using a machine is actually more water efficient than hand washing, especially if you run full loads.
  • Energy Star dishwashers use about 4 gallons of water per load, and even standard machines use only about 6 gallons. Hand washing generally uses about 20 gallons of water each time.

Yards and Pools

  • Nearly 60% of a person’s household water footprint can go toward lawn and garden maintenance.
  • Climate counts—where you live plays a role in how much water you use, especially when it comes to tending to a yard.
  • The average pool takes 22,000 gallons of water to fill, and if you don’t cover it, hundreds of gallons of water per month can be lost due to evaporation.

Diet

  • The water it takes to produce the average American diet alone—approximately 1,000 gallons per person per day—is more than the global average water footprint of 900 gallons per person per day for diet, household use, transportation, energy, and the consumption of material goods.
  • That quarter pounder is worth more than 30 average American showers. One of the easiest ways to slim your water footprint is to eat less meat and dairy. Another way is to choose grass-fed, rather than grain-fed, since it can take a lot of water to grow corn and other feed crops.
  • A serving of poultry costs about 90 gallons of water to produce. There are also water costs embedded in the transportation of food (gasoline costs water to make). So, consider how far your food has to travel, and buy local to cut your water footprint.
  • Pork costs water to produce, and traditional pork production—to make your sausage, bacon, and chops—has also been the cause of some water pollution, as pig waste runs into local water sources.
  • On average, a vegan, a person who doesn’t eat meat or dairy, indirectly consumes nearly 600 gallons of water per day lessthan a person who eats the average American diet.
  • A cup of coffee takes 55 gallons of water to make, with most of that H2O used to grow the coffee beans.

Electricity, Fuel Economy, and Airline Travel

  • The water footprint of your per-day electricity use is based on state averages. If you use alternative energies such as wind and solar, your footprint could be less. (The use of biofuels, however, if they are heavily irrigated, could be another story.) You would also get points, or a footprint reduction, for using energy-star appliances and taking other energy-efficiency measures.
  • Washing a car uses about 150 gallons of water, so by washing less frequently you can cut back your water use.
  • A gallon of gasoline takes nearly 13 gallons of water to produce. Combine your errands, car pool to work, or take public transportation to reduce both your energy and water use.
  • Flying from Los Angeles to San Francisco, about 700 miles round-trip, could cost you more than 9,000 gallons of water, or enough for almost 2,000 average dishwasher loads.
  • A cross-country airplane trip (about 6,000 miles) could be worth more than 1,700 standard toilet flushes.
  • Traveling from Chicago to Istanbul is just about 10,000 miles round trip, costing enough water to run electricity in the average American home for one person for more than five years.

Industry—Apparel, Home Furnishings, Electronics, and Paper

  • According to recent reports, nearly 5% of all U.S. water withdrawals are used to fuel industry and the production of many of the material goods we stock up on weekly, monthly, and yearly.
  • It takes about 100 gallons of water to grow and process a single pound of cotton, and the average American goes through about 35 pounds of new cotton material each year. Do you really need that additional T-shirt?
  • One of the best ways to conserve water is to buy recycled goods, and to recycle your stuff when you’re done with it. Or, stick to buying only what you really need.
  • The water required to create your laptop could wash nearly 70 loads of laundry in a standard machine.
  • Recycling a pound of paper, less than the weight of your average newspaper, saves about 3.5 gallons of water. Buying recycled paper products saves water too, as it takes about six gallons of water to produce a dollar worth of paper.

 

National Geographic
View original article here

The Financial Analysis of a Deep Sustainable and Resilient Retrofit

Posted on by abrahamwien18

PJ Pictureby Paul L. Jones, CPA, LEED Green Associate, Principal,
Emerald Skyline Corporation

According to a guide to the energy retrofit market entitled “Deep Energy Retrofits: An Emerging Opportunity” and published by the American Institute of Architects (AIA) in conjunction with the Rocky Mountain Institute (RMI), “Energy efficiency in existing buildings is most often addressed by upgrading dated engineering systems such as lighting and HVAC systems with better performing technologies… A design-centered, holistic approach to a retrofit, in which all the interactions in a building’s systems are considered can yield substantially higher energy savings. Retrofits of this type, called deep energy retrofits, aim for energy savings upwards of 50%.”

A green or sustainable building refers to both the real estate (land, building, fixtures, furniture and equipment) and its maintenance, or the use of processes that are environmentally responsible and resource-efficient throughout its life cycle (e.g., site planning, building design, construction, occupancy and operation including maintenance and renovation, and, finally, demolition. In our corporate brochure, we state that “A facility made sustainable by Emerald Skyline Corporation will have a small carbon footprint, high occupant comfort, limited environmental impact and conserved natural resources.”
Accordingly, a deep sustainable retrofit, hereinafter referred to as a “Deep Retrofit,” is designed to lower energy, water and waste disposal bills as well as operating, maintenance and insurance costs with increased marketability and higher long-term values due to a higher tenant capture rate resulting in premium occupancies and rental rates as well as reduced risk resulting in a lower cap rate upon sale. Other benefits include improved employee health, productivity and satisfaction from improved indoor environmental quality.

With recognition of the increasing importance of resiliency in the ability of a building to survive and recover from a catastrophic event, any Deep Retrofit should also include improvements that reduce a building’s vulnerability and risk due to stronger winds, higher storm surge, more frequent flooding, wild fires and other natural hazards that threaten our families, livelihoods, businesses and properties.

As a Deep Retrofit represents a significant modernization of a facility during which over 50% of the building is renovated, the optimum time to implement a Deep Retrofit is upon acquisition, to improve a building that suffers from significant vacancies, to reposition or repurpose a building, pursuant to a new lease (or renewal thereof) to a major tenant or timed to certain events in a property’s life cycle. A Deep Retrofit is a tremendous catalyst for a building’s comeback.

According to Jack Davis in a 6/14/2012 article entitled “Energy-saving Deep Retrofits published by the Urban Land Institute, “Deep retrofits are part energy efficiency project, part real estate project, and can be daunting in their cohesive nature. However, in a 2011 study the New Buildings Institute found that “in most projects, the cost of the efficiency portion was not distinguishable due to the renovation nature of the work.“

Mr. Davis makes another valid point: “Psychologically, Deep Retrofits are simply more inspiring that a piecemeal approach. They they do not occur by accident; they imply the involvement of a capable team with a plan and the technical abilities to pull it off. They grab our attention in a unique way. In the competition to secure and retain tenants, with buildings certified under the LEED program becoming the norm in some markets, deep retrofits offer a gut-level indicator that this building is different.”

Study after study (see our Sustainable Benefits article “Welcome to Sustainable Benefits – Let’s begin with the benefits of doing a commercial building sustainable retrofit” February 2015) provides evidence that a LEED (Leadership in Energy and Environmental Design) or Energy Star certified building produces returns beyond those realized from energy savings alone. Therefore, it only makes sense that the financial analysis of a Deep Retrofit should extend beyond the capital budgeting approaches presented in our September eNewsletter.

RMI defines Deep Retrofit Value (DRV) as “the net present value of all of the benefits of a deep energy or sustainability investment.” In the case of a Deep Sustainable Retrofit, the analysis includes a calculation of the change in market value resulting from the implementation of the Deep Retrofit, which is based on the income approach to value in a full property valuation.

The first step in the analysis of a Deep Retrofit is to perform a diagnostic assessment of the Building. The assessment will include:

  • Gain an understanding of the building’s historical performance through an analysis of existing usage of, and expenditures for, energy, water, building maintenance and cleaning supplies as well as tenant behavior
  • Perform a sustainability audit of mechanical, electrical, plumbing and other building systems as deemed appropriate which includes an estimate of the capital investment required as well as a forecast of future utility, maintenance and operating cost savings,
  • Evaluate internal environmental quality, waste disposal practices, purchasing and other operating policies, procedures and practices which will also include a calculation of any savings or incremental costs realized as a result of the Deep Retrofit; and
  • Determine the resiliency of the property by ascertaining the building’s ability to absorb and recover from actual or potential adverse effects of stronger storms, higher storm surge, wildfires and more frequent flooding.

The next step is to complete what RMI refers to as a “Value Element Assessment” which is designed to identify the potential types of value that may be created by the Deep Retrofit. The four key elements of added value are:

  1. Retrofit Development Costs: As noted in the capital budgeting process in our article on the Capital Budgeting Analysis of a Sustainability Project, any direct and indirect savings are measured against the capital cost to be incurred. The Retrofit Capital Cost Equation is as follows: Gross capital cost less avoided capital costs less cost savings through design less cost subsidies, rebates and incentives equals Retrofit Capital Costs
  2. Energy and Non-Energy Operating Costs: The first financial benefit from a Deep Retrofit will appear in the utility bills as both the wattage consumed and the amount of peak-demand billing that is avoided will result in an immediate reduction in the electric and gas bills as well as the water bill. Non-energy operating cost savings are realized from new technology, improved performance information and operating savings from reduced maintenance requirements, and, including resiliency measures in the Deep Retrofit is anticipated to result in reduced property, flood and hazard insurance expenses. Also, a Deep Retrofit will enable a building owner to comply with current and future regulatory reporting requirements due to automated benchmarking data collection.
  3. Rental Revenues: According to a primer for building owners and developers published by the Appraisal Institute in conjunction with The Institute for Market Transformation, Deep Retrofits have the potential to improve tenant-based revenues which are those revenues generated when building owners are able to monetize enhanced demand resulting from the Deep Retrofit.
    • “In many markets, rental premiums are emerging in green buildings as many of today’s best tenants are increasingly willing to pay a premium for green spaces… 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 recent studies, the premium can range from 2% to 17%).
    • “Occupancy premiums can lead the case for green investments. If it can be determined that the green features will result in higher occupancy (through market research) than an otherwise similar building, a significant argument can be built for increases in value (from a reduced vacancy factor). Further, a LEED-certified building will attract demand from governmental agencies, Fortune 500 companies, major banks and insurance companies and other tenants who have corporate sustainability guidelines.
    • “Savings may be experienced as a result of tenant retention and the corresponding reduction in lost rents, reduced retrofit costs upon releasing spacer, lower vacancy at turnover and improved lease terms.
    • “Along with this improved occupancy premium, quicker absorption may be experienced in new properties or those that have been repositioned as green.”

While the calculation of the increased income is the same as for a traditional building investment analysis, the determination of the key assumptions requires extensive market research to support the assumptions which are input into a discounted cash flow model, like ARGUS® Valuation DCF.

  1. Sales Revenue Premium: Increased property values are realized from the higher net operating income realized due to reduced expenses and increased tenant revenues, lower capitalization and discount rates which result from risk-mitigating protections sustainable and resilient buildings provide property owners and banks, higher quality tenants, and increased investor demand. Recent surveys show that green commercial buildings trade at a premium ranging from 6% to 35% depending on the certification and the market. Studies have shown that capitalization rates for Energy Star and LEED-certified buildings are between 50 and 100 basis points lower than those for brown buildings.

Since the analysis is to determine the premium due to sustainability and resiliency improvements made to a commercial building. To complete this analysis, it requires the creation of a Cash flow projection under two scenarios:

  1. Baseline: A baseline projection is prepared based on the property in its current operating condition and market position; and
  2. Post-retrofit: This projection incorporates the retrofit development costs, the reduced operating expenses, the premium rental revenue and the any anticipated reduction in cap rate.

The difference in net operating income and the reversionary value is discounted based on the risk profile of the property and the investment to determine the value add from completing the Deep Retrofit.

The benefits of a Deep Retrofit can be significant!

With over 30 years of experience in acquisition due diligence, property valuation and cash flow forecasting as well as the ability to conduct the diagnostic assessment and create a Deep Retrofit program and budget, Emerald Skyline is uniquely qualified to be your advocate in planning, analyzing and executing your sustainable and resilient retrofit project.

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

Posted on by abrahamwien18

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.

The Alphabet Soup of Transparency Tools

Posted on by abrahamwien18

How do EPDs, HPDs, and PTDs fit into LCA?

By Christopher Curtland , Buidlings, 3/17/2014
View the original article here

Green certification shouldn’t feel like a game of Scrabble, but if you pursue certain tools, you’ll score a bonus in sustainability.

There are a growing number of acronyms in the industry, so it’s important you don’t get them jumbled. Learn how Environmental Product Declarations (EPDs), Product Transparency Declarations (PTDs), and Health Product Declarations (HPDs) differ.

Lifecycle assessment (LCA) is factored into all three, and they could help you achieve LEED status or other designations.

 

Declarations of Disclosure


EPDs, HPDs, and PTDs were developed by SCS Global Services to effectively promote transparency, accuracy, scientific credibility, and comparability across several interior products.

While there is some overlap among the tools in terms of ingredient disclosure, they vary in how they report the impact of those ingredients on lifecycle, occupant health, and other criteria.

EPDs are summary reports of product-related environmental impacts based on a cradle-to-grave lifecycle assessment. HPDs are disclosures of product content and potential health hazards from chemicals of concern.

“There are two types of EPDs – basic for those seeking LEED v4 credits, and ‘full transparency’ EPDs that provide more comprehensive information based on advanced LCA,” says Stowe Beam, managing director of SCS’s division of environmental certification services. “HPDs enable companies to communicate the safety of potentially hazardous chemicals.”

PTDs are for products that undergo a health hazard assessment. They go a step beyond HPDs by disclosing intentionally added ingredients, including heavy metals. They acknowledge materials on six authoritative lists (see below) and indicate whether the ingredient level triggers an exposure warning notification based on the content.

“It’s a marriage between ingredient and exposure disclosure,” says Dean Thomson, president of the Resilient Floor Covering Institute. “PTDs also detail recycled content and VOC emissions.”

 

How to Use Them to Your Advantage


Think of these tools as nutritional labels for interiors products. They are all voluntary, so if a manufacturer has pursued them, you can feel confident in their commitment to sustainability.

Instead of using these designations as the basis for an apples-to-oranges comparison, they’re more apt for comparing Red Delicious to Granny Smith. The tools may seem the same at first glance, but their differences outweigh the similarities.

 

Ingredients and Health Risks

 

  • PTDs reference several hazardous materials identified by these six authorities:
  • International Agency on the Research of Cancer Terminology
  • National Toxicology Program
  • Occupational Safety and Health Administration
  • California Proposition 65
  • EPA’s Toxic Release Inventory
  • REACH Substances of Very High Concern

 

After digesting the alphabet soup of disclosure, ask yourself three key questions:

How is the product being sourced and delivered? Shipping a sustainable product overseas likely defeats its purpose.

 

How will the product be used? Cleaning solutions, wear and tear, room temperature, and moisture can significantly affect a product’s performance.

 

What happens at end-of-life? If a manufacturer offers recycling and disposal services, that’s a bonus. You don’t want the product to end up in a landfill.

And remember, these tools are meant to make your life easier, not harder.

“EPDs, PTDs, and HPDs present a product’s ecological impact in a way that is

easy to comprehend,” explains Dave Kitts, vice president of environment at flooring manufacturer Mannington. “Lifecycle assessments are very detailed and granular. They have a scientific feel and are hard to understand. These tools standardize environmental information for an average reader.”

 

Chris Curtland is assistant editor of BUILDINGS.

‘Green’ Federal Facilities Save $42M

Posted on by abrahamwien18

Environmental Leader, 05/27/2014

More than 400 federal facilities achieved $42 million in cost savings and environmental benefits last year as part of the Federal Green Challenge (FGC).

A national effort under the EPA’s Sustainable Materials Management Program, the FGC allows federal offices or facilities to pledge participation in reducing the federal government’s environmental impact and recognizes outstanding efforts that go beyond regulatory compliance and strive for annual improvements in selected target areas (waste, electronics, purchasing, water, energy and/or transportation).

Within these areas, additional accomplishments by participants included: diverting more than 500,000 tons of municipal solid waste and construction and demolition waste from landfills, and reducing fleet distance traveled by 16.5 million miles.

Data collected from the challenge show that FGC participants sent 1,765 tons of end-of-life electronics to third-party certified recyclers, minimizing environmental impacts — including water and energy use, releases to air and water, greenhouse gas emissions, and land use impacts.

The US General Services Administration’s new standards for its federal buildings, published in March, focuses more on outcomes, or performance, and less on technology.

The Facilities Standards for the Public Buildings Service, also known as the P100, is a mandatory standard that outlines how facilities will be managed, designed and built to achieve higher performance levels and save energy in the 9,200 buildings the GSA owns and leases across the country. The P100 applies to all new construction projects including additions to existing facilities.

Incentives Aim to Green Up New York, Reduce Operating Costs for Building Owners

Posted on by abrahamwien18

By Joshua Ayers, Senior Editor, 5/20/2014
View the original article here

New York—A recent study found that 75 percent of greenhouse gasses in New York City are being generated by buildings, a majority of which are multifamily residential buildings. The alarming figures have prompted an assortment of companies and organizations, ranging from major utility companies to the mayor’s office, to develop programs that incentivize green upgrades in an effort to entice multifamily building owners to curb emissions.

A panel of industry experts explored the fiscal perks of these programs at FirstService Residential’s Third Annual Green Expo & Symposium May 15 in New York, stressing the importance of participating in the programs before they are no longer available.

“What’s packaged inside of this is not only trying to operate your building more efficiently, cleaner, greener, but also as a major opportunity to save money,” said FirstService Residential President Dan Wurtzel as he opened up the discussion. “Ultimately if at the end of the day that’s where we end up then we’re all in a better place. We save money, we’re contributing to a greener environment and probably our property values are going to go up because of the reputation of the building. So it’s a win-win all the way around.”

One of the largest incentive programs currently available to New York building owners is NYSERDA’s flagship program, the Multifamily Performance Program (MPP), which allots building owners $500 to $1000 per unit to help reduce energy usage by 15 percent. To qualify, owners must work with one of about 90 NYSERDA-approved partners, which include engineering firms, energy consultants and non-profit organizations. That chosen partner then assess and recommend improvements that will help them achieve the reduction. Owners become eligible for an additional $300 per-unit bonus if they are able to meet the criteria.

“The good news is that the way that all this is calculated and the way that electricity rates work, 15 percent energy reduction is about a 15 percent cost reduction,” says Michael Colgrove, director of NYSERDA’s New York City office, who directly oversees the multifamily programs. “If you know how much you spend annually on energy usage, you take 15 percent off of that, and that’s about what the program [can do to] assist you.”

Colgrove said that most buildings in the program end up reducing usage by 20 to 25 percent and that there have been some buildings that have cut energy use by as much as 40 percent. In addition to the initial incentives, owners can qualify for an additional $300 per unit if they are able to reduce usage.

But the panelists stressed the importance of taking advantage of these programs, as most of them do have set term limits.

For example, Con Edison has created a new program aimed at curbing peak summer demand energy uses. The program, called the Demand Management Program, provides a certain amount of money for every kilowatt of energy saved via a variety of methods such as lighting upgrades, While owners can potentially save thousands of dollars through these incentives, the program will end promptly in June 2016.

Con Edison also has other programs that reward energy reduction such as the four-year Commercial and Industrial Program, which features components that provides rebates for energy efficient equipment and other incentives that can help fund up to 50 percent of a green capital improvement project.

“Some programs have quadrupled the amount of programs and funding available,” said panelist John Skipper, business development for Energy Efficiency & demand response, Con Edison

While these incentive programs allow for building owners to save thousands of dollars in operating costs and give buildings a greener footprint, proper research in rare cases can lead to an additional source of income.

Panelist William C. Ragals, Jr., board president of The Strand Condominium in Manhattan says his board took advantage of now-expired NYSERDA and Con Edison oil-to-gas conversion incentives to help fund the installation of a Combined Heat and Power (CHP) that has allows the building to produce energy at below Con Edison rates.

“With the money that they gave us and the efficiencies that we received in operating expenses by switching from oil to gas, the balance of our out-of-pocket was recovered by us in about five months,” Ragals said.

Despite all of the available programs, qualifying for incentives does not come without a set of challenges. Ragals says that researching the program and educating board members or property managers is the first step to addressing these challenges.

“I had to educate my board and that is something you have to face,” he says.

Another key step to reeling in incentive money is to identify what upgrades need to made and which ones will have the best effect on operating costs.

This can be determined several ways. One way is to utilize information collected through annual benchmarking reports (a requirement of Local Law 84) to identify how much energy a building uses and how that figure compares to other similar buildings in order to determine whether an upgrade is warranted. The second involves conducting an Energy Efficiency Report, something that is already required every 10 years for larger building thanks in part to Greener, Greater Buildings Plan efforts, specifically Local Law 87, which that mandates such an inspection for “covered buildings” with 50,000 or more gross square feet.

“Basically you have a qualified contractor come in and analyze the system that’s in your building and tell you where you can save energy,” said Jenna Tatum, NYC Carbon Challenge Director, New York City Mayor’s Office of Long-Term Planning and Sustainability.

Tatum says that the building owners can get credit for the audits up to four years in advance of the 10 year deadline, and that while the audit does cost money, there are no requirements necessary to commit to any projects.
Colgrove clarified, however, that work has to already have started before NYSERDA incentives will be paid out.
“NYSERDA won’t actually give you an incentive until you’ve installed at least 50 percent of that work,” he said, adding that “NYSERDA’s MPP program has a clause in it that says ‘we will recognize any work that a building has done up to a year of applying to the program,’ and that can qualify toward your 15 percent target.”