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Jerry YudelsonYudelson Associates

April 2010

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Take-Aways

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Green Building Important for Carbon Reduction

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Life-Cycle-Cost Positive Solution

Buildings are the only Life Cycle Cost-positive solution

25% of total carbon solution can come from buildings, including homes, stores, offices, hotels, institutional buildings and other structuresChoosing GreenChoosing Green

Choosing Choosing GreenGreen

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Triple Bottom Line

Profit Financial return

Marketing & PR

Higher Productivity

Planet

Less carbon, waste and energy and water use

People

Job satisfaction

Healthy work environment

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Range of Proven Benefits

Absenteeism

Carbon Emissions

Energy Costs

Hospital Stays

WasteManagement Costs

Water UsagePerformance on School Tests

Retail SalesPer Square Foot

FactoryProductivity

Office Productivity

Occupancy Rates

Rental Rates

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Importance of Building Green

In the year 2035, 75% of U.S. buildings will be either new or renovated, vs. 2005.

For the Middle East the percentage is even higher.

McDonalds Corp. HQ

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Green Building Is Growing Rapidly

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Green Building Statistics

USGBC: 18,000+ corporate members

25,000 LEED registered projects (Jan. 2010)

4,000 LEED certified projects (Jan. 2010)

140,000+ LEED Accredited Professionals

OREGON

HEALTH & SCIENCEUNIVERSITY

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LEED Growth - Project Registrations

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Green Buildings Make Money Sense

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Business Case for Green

Financial/Economic Return

Risk management

Marketing and public relations

Productivity/health gains

Recruitment and retention

Sustainability concerns

Policy directives

Omnicom Media GroupDubai Media City

LEED

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Study Results

Energy Star Buildings vs. Peers

$26/m2 rent premium 3.6% higher occupancy Selling for $66/m2

LEED Certified Buildings vs. Peers

$122/m2 rent premium 4.1% higher occupancy Selling for $1870/m2

more!

Clinton Presidential Clinton Presidential LibraryLibraryArkansasArkansas, , LEEDLEED

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Marketing and Public Relations

QSAS, Emirates LEED

Ideal tool

500 GCC projects registered under US LEED

Save energy, water, waste disposal costs

Create green brand

Low-cost options availablePacific Controls, Dubai

1st LEED Platinum Building

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Most costs are “people costs”

Studies show 3-7% gain in workplace productivity

A 1% gain in productivity pays all the energy bills

A 10% gain in productivity pays for the entire building (or the technology)!

Productivity Counts

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Green Branding

LEED-CI ideal tool

Certify interior fit-out

Save energy, water, waste costs

Example: ABN AMRO, LEED Gold, Dubai

Payback possible within one year!

Low-cost green option

LEED-CI Gold Office, Dubai

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Greening Existing Buildings: The Next Big Challenge

Over 4,100 LEED-EB buildings registered

2,100 in 2009 alone!

Also major renovations

Hines Postquartier Stuttgart, Germany

26,000 sq. meters

9,800 sq.m. retail

Hines, Stuttgart, LEED Core and Shell Gold Pre-

certification

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What Does This Mean Here?

Green certifications add value

Large global companies want green office space

Save on energy, water, costs

Payback within 1-2 years

Prevent value erosion

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Urban Water Use

• Urban water concerns are likely to increase

• Good design & practice can reduce water use +50% in buildings

• Retrofits can reduce water use 35% to 75%

• Australia is the case study, the testing ground– 150 liters/capita/day– U.S: 150 gallons/cap/day!

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Water Design Standards

• Control irrigation/cooling tower water use

• Look at entire water cycle– Match quality with use– Gray water for cooling

• U.S. good practice– 600 l/m2/year

• Australian best practices:– 400 l/m2/a

• No cooling tower

• German averages:– 200 l/m2/a

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The Future is Green, But…

If you want to score, run to where the ball is headed, not to where it is.

Ask yourself: how green will the built environment be in 2015? What will be the New Normal?

Non-performing green buildings will pay a penalty in that market!

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Jerry YudelsonYudelson Associates

April 2010

THANK YOU!