“Green Apples and Apples” - Appraisal Institute · “Green Apples and Apples” ... 7...

“Green Apples and Apples”Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, MRICS

And

Sandra K. Adomatis, SRA, LEED Green Assoc., NAR Green

“Are you comparing your “Green Apple” to red, golden, or rotten apples?"

®Copyright 2018 – Sandra K. Adomatis, SRA 2

Learning Objectives

Identify a true “Green Apple”

01Select a true comparable

02List tools and resources that assist in the valuation of energy efficient and green buildings

03


Identify a true “Green Apple”

5

What is the dividing line between a “Green Apple” and a “Red Apple?”


Building Code RequirementsNon-Green Apple

Six Elements of Green Building

Site Compaction, drainage, slope, Exceeds Code-Builds to maximize site characteristics

Water Efficiency Low Flow plumbing fixtures Exceeds Code

Energy Efficiency Minimum Eff. Rating Exceeds Code Efficiency Rating – Hi Eff Mechanicals – Solar/Geo

Indoor Air Quality Max. Envelope Rating Exceeds Code

Materials Little requirements for materials in Code

Low VOC and Efficient materials priority

Operations and Maintenance

Little attention to O & M Requirements and education to minimize O & M

Midwest U.S. Geothermal vs. Traditional HVAC

®Copyright 2018 – Sandra K. Adomatis, SRA 8Source: https://coldcraft.com/geothermal-vs-traditional-hvac/

https://coldcraft.com/geothermal-vs-traditional-hvac/

What is behind the drywall?


This tells what is behind the walls and compliments appraisal standard requirements!


Sales Price Premiums Per Builder Survey


Test of Reasonableness – Cost Over Code


Majority say between 1% &

10%

Property to be appraised – 1,437 SF – 1-Car Attached Garage


For Sale

Case Study

Green Certifications


AI Residential Green & Energy Efficient Addendum – 820.05

®Copyright 2018 – Sandra K. Adomatis, SRA 15http://www.appraisalinstitute.org/assets/1/7/ResidentialGreenandEnergyEfficientAddendum.pdf

http://www.appraisalinstitute.org/assets/1/7/ResidentialGreenandEnergyEfficientAddendum.pdf

AI Residential Green & Energy Efficient Addendum – 820.05




Sold 6 months ago -1,437 SF – 2-Car Garage


Sold 3 months ago – 1,437 Sq. Ft. – 2-Car Garage


Sales within a mile and all are code-built – none with Energy Upgrades or Certifications


# Close Date Legal Subdivision NameSq Ft

HeatedCurrent

Price SP/SqFt Beds Baths Year Built Pool1 6/23/2017 PORT CHARLOTTE SUB 36 1,348 $170,650 $126.59 3 2 2017 None2 8/12/2016 PORT CHARLOTTE SUB 19 1,540 $171,150 $111.14 3 2 2016 None3 8/10/2016 PORT CHARLOTTE SUB 17 R 1,437 $174,900 $121.71 3 2 2016 None4 3/17/2017 PORT CHARLOTTE SUB 29 1,227 $178,900 $145.80 3 2 2017 None5 9/24/2016 PORT CHARLOTTE SUB 29 1,540 $178,150 $115.68 3 2 2016 None6 8/15/2016 PORT CHARLOTTE SUB 11 1,437 $181,900 $126.58 3 2 2016 None7 8/19/2016 PORT CHARLOTTE SUB 11 1,437 $182,900 $127.28 3 2 2016 None8 4/24/2017 PORT CHARLOTTE SUB 19 1,437 $186,900 $130.06 3 2 2017 None9 12/2/2016 PORT CHARLOTTE SUB 11 1,415 $187,000 $132.16 3 2 2016 None

10 9/24/2016 PORT CHARLOTTE SUB 11 1,540 $190,250 $123.54 3 2 2016 None11 6/5/2017 PORT CHARLOTTE SUB 26 1,437 $191,900 $133.54 3 2 2017 None12 5/26/2017 PORT CHARLOTTE SUB 26 1,437 $191,900 $133.54 3 2 2017 None13 4/18/2017 PORT CHARLOTTE SUB 11 1,540 $194,750 $126.46 3 2 2016 None14 4/21/2017 PORT CHARLOTTE SUB 19 1,546 $198,500 $128.40 3 2 2017 None15 1/18/2017 PORT CHARLOTTE SUB 19 1,437 $203,000 $141.27 3 2 2016 None16 1/30/2017 PORT CHARLOTTE SUB 17 1,437 $226,000 $157.27 3 2 2016 Yes

Mean 1,450 $188,047 $130.06Median 1,437 $186,950 $127.84


Appraised value on the green house with 5 Certifications was $5,000 less than the lowest priced Code-Built Home within 1 mile because appraiser said the Green Home was lower quality than a code-built home.

Illinois Farm House built

in 1906Now Green


Can you see Green here?



http://newsroom.usgbc.org/us-green-building-council-releases-annual-top-10-states-for-leed-green-building-per-capita/

2017 Top 10 States for LEED Certified Buildings Per Capita

List

The Appraisal Institute Commercial Green Registry must be heavily populated in these states.

http://newsroom.usgbc.org/us-green-building-council-releases-annual-top-10-states-for-leed-green-building-per-capita/


https://www.buildingrating.org/graphic/us-commercial-building-policy-comparison-matrix

U.S. Commercial Building Energy Benchmarking and Transparency Policies

A Resource that might hint toward an “apples- to-apples” comparison.


What is a “cost-effective building?”• Is it the lowest first-cost structure that meets the

program?• Is it the design with the lowest operating and

maintenance costs?• Is it the building with the longest life span?• Is it the facility in which users are most productive?• Is it the building that offers the greatest return on

investment?


Source: http://www.wbdg.org/design-objectives/cost-effective

http://www.wbdg.org/facilities-operations-maintenance

http://www.wbdg.org/design-objectives/functional-operational

http://www.wbdg.org/design-objectives/productive

http://www.wbdg.org/design-objectives/cost-effective

Cost-Effective Building Design is…


A building design is deemed to be cost-effective if it results in • benefits equal to those of alternative designs and• has a lower whole life cost, or total cost of ownership.

For example, the HVAC system alternative that satisfies the heating and cooling requirements of a building at the minimum whole life cost, is the cost-effective HVAC system of choice.



Cost-Effective Building Design is…


Components of the whole life cost include

• Initial design and construction cost, • On-going operations and maintenance, • Parts replacement, • Disposal cost or salvage value, • The useful life of the system or building.



Commercial-Industrial Heating-Cooling Systems


Heating, ventilating, and air-conditioning (HVAC systems) account for 39% of the energy used in commercial buildings in the United States. Consequently, almost any business or government agency has the potential to realize significant savings by improving its control of HVAC operations and improving the efficiency of the system it uses.

https://www.wbdg.org/resources/high-performance-hvac




• The use of high performance HVAC equipment can result in considerable energy, emissions, and cost savings (10%–40%).

• Whole building design coupled with an "extended comfort zone" can produce much greater savings (40%–70%).

• Extended comfort includes employing concepts such as providing warmer, but drier air using desiccant dehumidification in summer, or cooler air with warmer windows and warmer walls in winter.





• In addition, high-performance HVAC can provide increased user thermal comfort, and contribute to improved indoor environmental quality (IEQ).


https://www.wbdg.org/design-objectives/productive/provide-comfortable-environments

https://www.wbdg.org/design-objectives/sustainable/enhance-indoor-environmental-quality


Indoor Air Affects Health of Employees


Influenza Virus Type A

Is 10 times more viable in dryer air.

The germs spread farther in dryer air.

Source: (www.welloinc.com/wp-content/uploads/2014/.../Our-Health-and-Indoor-Weather.pdf » Humidity Impacts Infection Spread and Susceptibility

Humidity Impacts Infection Spread and Susceptibility

Humidity Impacts Infection Spread and Susceptibility

Humidity Level % of Flu Virus Particles

Can Simulate how long after cough?

23% 70-77% 1 hour

43% 14% 15 minutes

“The virus just falls apart within 15 minutes when in high humidity levels.” said study researcher John Noti, of CDC.

Source: (https://www.livescience.com/27533-flu-transmission=humidity.html )

http://www.welloinc.com/wp-content/uploads/2014/.../Our-Health-and-Indoor-Weather.pdf

https://www.livescience.com/27533-flu-transmission=humidity.html

Case Study – Mixed Use- Office and Retail – Rosslyn, VA


Commercial Case Study


• 1525 Wilson Blvd, Rosslyn, VA• 12-Story Building (Mixture of Office and Retail

with three-level underground parking)• 313,337 Sq Ft Building – Mid-Class Building

before Retrofit• 100% Tenant Occupied• All Electric• Built 1987 – Deep Green Retrofit in 2010

Source: https://newbuildings.org/hubs/deep-energy-retrofits/#research

https://newbuildings.org/hubs/deep-energy-retrofits/#research

Energy Retrofits Included…


• Replaced HVAC System• Replaced Lighting -Energy efficient lighting retrofit to

T8s, CFLs and LEDs• Engaged Tenants through education of energy features• Includes a monitoring system to gage performance• Result – 35% Energy Savings in Year 1 after the retrofit• Energy Savings was $250,000 Year 1



Energy Use Intensity Comparison


An Energy Use Intensity (EUI) is the total energy (gas and electric) used in thousands (k) of British thermal units (Btu) divided by the square feet (sf) of the space –resulting in a commonly used metric of kBtu/sf.

Air Distribution & HVAC Compressor Findings


HVAC: was estimated to impact 50-60% of the building’s energy use. During the retrofit, existing VAV boxes were found in the ceiling that were not connected, maintained or documented, resulting in entire zones of the building disconnected.

A comprehensive upgrade to the whole building VAV system, including the retrofit of 90% of compressors and sensors. The system framework is open source to allow expansion of additional capabilities to accommodate next-generation technology.

Indoor air quality was a major focus of the project and a key factor in tenant satisfaction. CO2 monitors were added to ensure adequate ventilation of occupied spaces and reduce ventilation rates when empty.



Cost Of Improvements


• $1,100,000 Energy Upgrades or $3.50/SF• Annual Energy Savings $283,000 at 7.5 Cents/kWh• $75,000 Savings in annual maintenance costs

$283,000+$75,000 Annual Savings = $358,000$1,100,000/$358,000 = 3.07 years to recoup

investment



Comparable Selection for Wilson Blvd.


• How easy will it be to comp this building?

• Is the EUI available on all sales?


Need photograph of Similar non green Commercial Building

Select A True Comparable


Exceeds Code

Meets Code

Are the code-built really comparables?


Identifying a “Green” Comparable


Feature Green Non Green

Insulation Continuous Insulation

Minimum Code

Envelope Tighter than Code Meets Code

Mechanicals High Efficiency Meets Code

Appliances High Efficiency Meets Code

Windows/Doors Double/Triple/Insulated

Meets Code

Materials Low VOC-Durable-Recyclable

Meets Code

Air Quality Improved –Mechanical Air Exchange

Meets Code

Smart Technology Maybe Not required

Energy Efficiency Exceeds Code Meets Code


Market Reaction to Green

List tools and resources that assist in the valuation of energy efficient and green buildings


A drone can inspect roofs

and solar photovoltaics

®Copyright 2018 –Sandra K. Adomatis,

SRA

48


Drone Photography by Appraiser in Puerto Rico

Commercial Addendum is a resource - checklist



RESNET’s Appraisal Portal Includes Confirmed Ratings Only


Free-Ei Value – Ipad or Tablet Application

Solar Valuation

Identify incentives,

rebates, laws by

state

http://www.dsireusa.org/

http://www.dsireusa.org/


https://www.appraisalinstitute.org/store/books-and-ebooks/environmental/

https://www.appraisalinstitute.org/store/books-and-ebooks/environmental/


Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, MRICS

E-mail: [email protected]

Sandra K. Adomatis, SRA, LEED Green Assoc., NAR Green

E-mail: [email protected]

mailto:[email protected]

mailto:[email protected]

“Green Apples and Apples” - Appraisal Institute · “Green Apples and Apples” ... 7...

Documents

Transcript of “Green Apples and Apples” - Appraisal Institute · “Green Apples and Apples” ... 7...