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The Greening of America from Business Facilities

Cities large and small are racing to mandate sustainable building practices, while developers and property owners are discovering that “going green” makes good business sense.

John Madden Co. expects its 15-story Palazzo Verdi office building in Denver, set to open in June, to receive LEED gold certification. (Credit: IM Flash Technologies)

Washington D.C., through its Green Building Act of 2006, was the first major U.S. city to mandate green construction for all privately owned real estate, requiring that all new development in the city conform to the standards of the United States Green Building Council’s (USGBC) rating system, known as LEED (Leader in Energy and Environmental Design).

Washington is expanding this mandate in 2008 to include all publicly financed buildings, and construction of private buildings of at least 50,000 square feet, starting in 2012. The city has since 2006 offered an array of incentives, including expedited permit reviews, grants, and technical assistance for green buildings.

Numerous other jurisdictions, big and small, across the country have jumped on board the green building movement, crafting a diverse array of laws designed to lessen their communities’ impact on global warming by reducing greenhouse gas emissions.

GREEN BUILDING IS NOW THE NORM >>>

According to Brooks Rainwater, director of local relations for the American Institute of Architects (AIA)

“From 2003 to 2007, the number of cities with green building programs grew by 418%, from 22 to 92. Another 36 cities, as of last summer, were in the process of developing green building programs. The future for green design looks bright, as we move toward a sustainable build environment that would not be possible without local leadership and strong citizen involvement,” he adds.

“Going green” is no longer the wave of the future—it increasingly has become a central feature of today’s building practices. Developers and corporate executives have recognized that sustainable, energy-efficient buildings may come with a cost premium, but can also bring immediate and long-term financial rewards. Green development increasingly has become a prime agenda item in boardrooms when new construction is being discussed. For a developer, returns can come in the form of higher sales and rents; tenants can save on energy and utility costs.

21st CENTURY ZONING >>>

Measures enacted in Boston are “a concrete example of how a large American city can move its zoning code into the 21st century.” In the “Local Leaders” study, Rainwater noted that the regulations had an immediate impact on building in Boston:

“The inclusion of green building standards directly into the code dramatically [increased] the number of green buildings constructed, as the number of permits issued by the city for green buildings in the first half of 2007 far outstripped the number of all green buildings constructed [in the previous year]. This also [speeds] the momentum as the remaining cost differential between green and standard buildings diminishes.”

New York City, which has required LEED standards for public buildings for several years, now offers incentives for private green building practices, with grants for “green” roofs and brownfield redevelopment. The city also has adopted strict codes for energy consumption. Mayor Michael R. Bloomberg’s wide-ranging PlaNYC proposal calls for a 30% reduction in carbon dioxide emissions in the city by 2030.

“The business case for building green is growing stronger,” he says. “Many building owners do not want to build a building that will be seen as out-of-date and not a true Class A property five years from now. If [they] aren’t building green, then this is a real possibility.”

Click the image to download a copy of the LEED Certification Checklist.

USGBC “LEEDS” THE WAY

The U.S. Green Building Council was founded in 1993 as a nonprofit group whose members include corporations, builders, universities, government agencies and other organizations. It established the third-party LEED certification program to encourage sustainable green building and development practices.

Research indicates that LEED buildings cost an average of 2% more to construct, though location and other factors play a significant role. New buildings certified under LEED perform an average of 25 to 30% better than other buildings in energy use, according to the New Buildings Institute. And a study completed in March by the real estate service CoStar Group says that LEED buildings command rent premiums of $11.33 per square foot more than non-LEED facilities, and have a 4.1% higher occupancy. Projects seeking certification can be registered online at the LEED Web site, www.leedbuilding.org.

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