Monday, January 24, 2005
Studies on LEED Buildings
Study 1:... An analysis of 33 green buildings conducted for the State of California by Greg Kats of Capital E found a range of zero to two percent incremental first cost, and handsome ROI from lower operating costs, but- and this is key - essentially no correlation between greenness and cost. The most significant correlates, in our experience, are whether greening - and stakeholder inclusion - are integrated into the project from the very beginning, or whether they're added in (or slapped on) later. ...
Thanks to WorldChanging for this link.
This figure correlates to what The Economist recently published: green buildings can be constructed at only an additional cost of 2% of a similar normal building. This additional cost is often recouped in less than 2 years due to the energy savings of 30%, compared to similar standard buildings.
Emphasis added.
Study 2:
In another report, this by Steven Winter Associates, Inc. on behalf of the US General Services Administration, the GSA was interested in learning about how LEED will affect the costs of two typical buildings that they have a great need for in the near future: new federal courthouse buildings and renovations to federal office buildings.
They outlined and modeled two different approaches for each of the three rankings: Certified, Silver, Gold. One approach was a high cost, and the other was a low cost, giving 6 different models for each building to compare.
New building, federal courthouse:
Low Cost, Certified - -0.4%
High Cost, Certified - +1.0%
Low Cost, Silver - -0.03% (negligable)
High Cost, Silver - +4.4%
Low Cost, Gold - +1.4%
High Cost, Gold - +8.1%
Renovated building, federal office building:
Low Cost, Certified - +1.4%
High Cost, Certified - +2.1%
Low Cost, Silver - +3.1%
High Cost, Silver - +4.2%
Low Cost, Gold - +8.2%
High Cost, Gold - +7.8% (yes, the high cost is less than the low cost)
The features that all of their modeled buildings would include are: LEED commissioning, energy efficiency, underfloor air delivery system, dedicated ventilation air system, recycled content materials, HCFC refrigerants, and green power purchasing.
As a result of this study,
... GSA requires all new construction and major modernization projects to be certified through the LEED program, with an emphasis on obtaining Silver ratings. Individual client agencies may also work with GSA to persue even higher levels of LEED certification. Using the results of the LEED Cost Study, the GSA intends to refine the amount of "sustainability" funding provided for future projects (prior to the Cost Study, GSA has allocated a 2.5% budget increase for green building construction costs). The new budget allocation will be enough to ensure that projects can achieve LEED Certified ratings; however, project teams will be encouraged to achieve the highest level of LEED rating that is practical within the overall budget. With revised budget allotments (which will likely vary between 2.5% and 4.0%, depending on the project), the study indicates that many Silver rated buildings should be possible, as well as an occasional Gold rated project. ...
This report is significant, in that it is probably the first one to estimate future costs of renovating buildings to the LEED standard. The GSA has a backlog of projects from which it can compare and extrapolate costs. They also seem to know which buildings are due for renovations. Most renovations, however, are risky. There can be many unknowns in a building that can cause tremendous cost overruns. With all the past experience of the GSA though, it seems that they are in a good position to be able to do a good estimate.
Thanks Craig for the link.
Related Article 1:
In Green-Building Benefits Outstrip Extra Costs, Sheila Muto of the Real Estate Journal
Related Article 2:
In Public Sector Spurs "Green" Building, Muto talks about the advantages that localities are finding in green buildings:
... More than 30 federal agencies, and state and local governments have adopted the energy-efficient and environmental-friendly standards established by the U.S. Green Building Council, which certifies buildings as green under its three-year-old Leadership in Energy and Environmental Design -- or LEED -- program. ...
"A number of jurisdictions are realizing this is a prudent tool in protecting taxpayer investment in their facilities," says Christine Ervin, the U.S. Green Building Council's chief executive. Moreover, they are discovering these building standards "contribute to other missions," such as energy and water conservation, waste-disposal reductions and storm-water management. ...
Among these 30 are Seattle, Chicago and San Francisco. Portland and Santa Monica both have taken steps to encourage green building.
Throughout the articles and reports that I've read, there are several consistent themes:
- Green building can cost between 0-2% of a normal building's cost.
- Because of the decreased utility costs of the buildings, the original investment is recouped within 2 years.
- Total design coordination should begin at the very beginning of the design process to achieve the lowest first cost and highest energy savings.
- Studies show that green buildings have higher rates of worker productivity and lower rates of absences in both offices and schools.
Previous posts:
Green Building Heading More Mainstream
Cost to Build Green
Green Sounds Great, but is it Affordable?
Buyers Want Homes to be Eco-Friendly
Green Technology Can Reduce Building Costs