Green building advantages that shouldn't be dismissed

October 22, 2015

Real estate development worldwide continues to shift in greener, more sustainable directions. According to this year's GRESB, an annual sustainability analysis of real estate sectors across the globe, a 50 percent increase in on-site renewable generation was reported among assets of over 700 of the world's largest property and private equity firms since 2014. This surge in renewable deployment was accompanied by a 3 percent reduction in greenhouse emissions by the same properties.

This data reinforces the notion that green practices have evolved far beyond just being alternatives and are becoming a major factor for real estate development in every hemisphere. The U.S. Green Building Council pointed out that the 2015 GRESB also noted that, as a trend, North American companies are planning for potential climate complications and energy resilience issues when making investment decisions and committing to new projects.

By recognizing the forward momentum behind this developing trend, building designers have an opportunity to expand their potential client bases and identify new ways to reduce long-term operating costs for their clients by integrating green building techniques and technologies into their designs,. Beyond reducing waste and attracting sustainably minded clientele, here are just a few of the proven incentives for builders to further invest in sustainable solutions.

Multiple studies show links between green building and productivity
One aspect of green building that should not be overlooked, especially by contractors and architects interested in distinguishing their services from the competition and keeping pace with greener rivals, is how green building practices can contribute to employee success in the workplace.

For example, the Effects of Green Buildings on Employee Health and Productivity study performed by Michigan State University found that on average, employees working in green buildings were less affected by asthma, allergies, emotional anxiety and depression, said FacilitiesNet. Likewise, findings gathered by multiple psychology professionals suggest a positive correlation between naturalized, comfortable workspaces and the mood of employees in the workplace, according to the American Psychology Association. Professionals capable of mastering and marketing green building expertise will be able to leverage these productivity-boosting capabilities of sustainable construction when competing for bids or reaching out to new clients.

Green building improves life cycle value through energy cost savings
Energy costs is a major concern for building owners, facility managers and energy managers and for good reason. According to the Committee on Climate Change, business energy costs are predicted to rise by a third by 2030. However, several factors are making investments in green building considerably more cost-effective and appealing to implement. One of those factors, incentives provided by the federal government, is back in the spotlight following the September announcement of President Obama's finalized Clean Power Plan, said Lexology.

In the final version of the proposed legislation, over $1 billion in loan guarantees were set aside for commercial projects that incorporate sustainable applications, like renewable generation and energy storage. By taking advantage of these incentives, facilities can more readily change how they consume and utilize  energy resources.

Even without incentives, facilities that incorporate solutions like CALMAC's IceBank energy storage tanks are capable of saving money by generating ice during off-peak periods. This ice can later be used to cool the building, allowing the company to reduce or eliminate the operation of chillers during the day when energy costs are at their highest and subsequently reduce their electricity bills.

Community optimization when private sector green projects share common interests with public sector
Another advantage of green building that contractors and architects should be aware of is the opportunity to create new relationships across public and private sector boundaries. For example, Denver's Union Station, is a public investment with plenty of private sector activity. There are rail, bus and bike paths plus new offices, retail shops, restaurants and a hotel. The USGBC Colorado Chapter sponsored the 2015 Commercial Real Estate Forum, which provided even more opportunities for public and private sector real estate experts to share best practices and collaborate on new potential sustainable design projects.