The Environmental and Economic Impact of LEED Certified Buildings

The Environmental and Economic Impact of LEED Certified Buildings The Growth of Receiving a Gold LEED rating in September 2011, the Empire State Building is the tallest and largest LEED certified building in the US LEED Buildings in the United States Market Impact LEED has more than 2 Billion Square Feet 44,000 of building space are LEED Certified commercial projects listed participatants comprising over 8 Billion Square Feet of construction space in all 50 states and 120 countries as of June 2012 Sq. ft. of space to earn LEED-certification in 2011 Per capita District of Columbia 18,954,022 31.50 Colorado 13,803,113 2.74 Illinois 34,567,585 2.69 TOP 10 STATES Virginia Washington Maryland 19,358,193 2.42 14,667,558 2.18 for LEED Green 11,970,869 13,087,625 50,001,476 2.07 Building 2011 Massachusetts 2.00 Texas 1.99 California 71,551,296 1.92 36,538,981 9,591,445 New York 1.89 Minnesota 1.81 LEED is becoming increasingly international and 40% of all projects pursuing LEED are located outside of the United States Energy Impact LEED Buildings: •Consume 25% Less Energy Buildings represent 73% of US US buildings •Consume 11% Less Water electricity consumption account for • 19% Lower Maintenance Costs 38% of all • 275 Higher Occupant Satisfaction • 34% Lower Greenhouse Gas Emissions CO2 emissions • Avoided .35% of total US CO2 emissions (2011) •4.9% estimated CO2 emissions avoidance (2030) • Diverted over 80 Million tons of waste from landfills (2011) • 540 million tons estimated waste diversion (2030) What is Driving the Green Building Market Economy Mandates and Policies LEED Incentive Programs Direct Rental Rates $48.00 Automatic 100% real property tax exemption (newly constructed or rehabilitated commercial or residential properties) - Cincinnati, Ohio $46.00 $44.00 $42.00 Construction materials for a qualifying LEED building are exempt from local taxes - Nevada $30.00 The High Performance Building Act in 2008 requires all new public constructions and renovations of buildings greater than 7,500 square feet to meet at least LEED Silver standard or two Green Globes - Maryland Q3 Q4 Q4 Q1 Q2 2005 2006 Q2 Q3 Q4 Q1 2007 Q1 2008 LEED O Non-LEED Together the higher occupancy rates, higher rents and lower operating expenses logically translate to higher values LEED certification which includes a rigorous third party commissioning process offers compelling proof to you, your clients, your peers and the public at large that you have reached your environmental goals and your building is performing as designed The Benefits of LEED Certification Extra Costs in Percentage to Build Green Extra Costs to Go Green Vary by Region Market Platinum Gold Silver San Francisco 7.80% 2.70% 1.00% 4 Merced 10.30% 5.30% 3.70% Denver 7.60% 2.80% 1.20% Boston 8.80% 4.20% 2.60% Houston 9.10% 6.30% 1.70% Only minor efforts are required to hit LEED certification at the minimum level once the developer or owner become familiar with the process Certified Silver Gold Platinum Certified Buildings Significantly Achieve an initial upfront investment of 2% extra will yield over ten times the initial investment in the life cycle of the building • Higher rents • Sales prices • Occupancy rates (lower capitalization rates reflecting lower investment risks) LEED certified buildings are intended to use resources more efficiently when compared to conventional buildings simply built to code VIATechnik References: Does Green Pay Off? By Norm Miller, Jay Spivey and Andy Florance http://www.usgbc.org/Docs/News/Top%2010%620States_lan2012_FINAL.pdf http://www.nrdc.org/buildinggreen/leed.asp engineers developers consultants viatechnik.com