Colliers Latam Green Report December 2010

GREEN REPORTLATIN AMERICA | DECEMBER 2010

Accelerating success.

TRANSOCEANICA BUSINESS PARK | PHOTOS BY GUY WENBORNE

TABLE OF CONTENTSGREEN REPORT | LATINAMERICA | DECEMBER 2010

INTRODUCTION

www.colliers.com

1

INDEX | COLLIERS INTERNATIONAL

WHAT IS A SUSTAINABLE OR GREEN BUILDING?

- Green buildings consider 6 di�erent categories

- Average Savings – Green Buildings USA

BENEFITS OF SUSTAINABLE CONSTRUCTIONS:

- Bene�ts achieved.

- Environmental bene�ts.

- Economic bene�ts.

- Health and Community bene�ts.

HOW TO START A SUSTAINABLE PROJECT:

- Councils established in Latin America.

- Future Councils in Latin America.

4 LEVELS OF LEED® SUSTAINABLE CERTIFICATION

- How much more expensive is a sustainable construction?

- Cost comparison of sustainable constructions

- How to achieve sustainability?

- Case study

WORLD GREEN BUILDING COUNCILS

TYPE OF PROJECTS

WHAT IS THE LEED RATING SYSTEM?

- Total LEED projects by rating system

WHO IS A LEED AP®?

- LEED profesionals by specializaton in Latin America.

2

3

4

5

6

7

9

10

More than 40% of gas emissions

associated to the green house e�ect

result from the ine�ciency in the

use of building resources and

communities around the world.

INTRODUCTION

17%

25%

33%

30 - 40%

40 - 50%

Nowadays is common to hear architects, interior designers, engineers and even

real estate professionals talk about concepts such as the Kyoto protocol, carbon

neutral, sustainable construction, bioconstruction and other theories or tools

recently developed from the need to generate global social awareness about the

environmental crisis we face. Many of these “green” tools assist professionals

for instance by indicating the chemical composition of materials or measuring

the emissions produced by an operating building – this with the purpose of

assisting in reducing, stopping or eliminating the environmental impact caused

by the construction industry, o�ering at the same time environmental and

socioeconomic advantages.

We expect the construction sector to adopt the “green” concept not only as a

trend, but as an important attribute of new commercial developments. For

many developers adopting these green initiatives in their commercial projects

can bring many bene�ts such as recognition as an environmental champion,

assistance in meeting local environmental regulations, decrease operating

costs, diminish sta� rotation of current tenants, allow for better use of human

capital and other resources and increase space e�ciency among others.

That is why several Latin American countries have joined global organizations

such as the World Green Building Council in order to create awareness about

this type of construction in their local markets. For example, Argentina, Brazil,

Colombia and Mexico have already established Green Building Councils and

Chile, Costa Rica, Guatemala, Panama, Peru and Uruguay are currently in the

process. Ecuador, Paraguay, Dominican Republic and Venezuela are only a few

of the 16 other countries interested in creating their own Green Building

Councils.

With the objective of accelerating our clients understanding of these new

sustainability concepts and ideas, Colliers International has gathered regional

information from our Latin American specialists to better assist in the

understanding of this topic. Colliers International Latin America remains

committed to delivering the best real estate market advice available and as

always we welcome your comments and questions.

FROM USINGDRINKABLE WATER

FROM CONSUMINGNATIVE WOOD

FROM CO2EMISSIONS

FROMENERGY USE

FROM PRIMEMATERIALS USE

ENERGY

24%- 50%

CARBONEMISSIONS

33% - 39%

WATER

30%-50%

SOLIDWASTE

50%-90%

WHAT IS A SUSTAINABLE ORGREEN BUILDING?

ENERGIAThese are some of the �gures

gathered by the USA Green

Building Council about average

savings achieved by green

buildings.

*Source: USGBC

Sustainable constructions or Green buildings as they are usually known are

structures speci�cally designed to reduce the negative impact on human beings

and the environment. Their objectives are:

- E�cient use of energy, water, land and materials.

- Protect the well being of its occupiers and improve the productivity of

employees.

- Reduce waste and contamination generated by the building.

Green Buildings are designed to achieve a high level of productivity during their

complete life cycle – from site selection, through their designing process all the

way to the end or demolition.

Sustainable constructions are signi�cantly better than standard buildings. They

use less energy, save money in the long run, improve comfort levels for their

occupiers and are environmentally friendly.

In order to obtain the maximum amount of bene�ts from sustainable buildings,

the whole process has to integrate all di�erent disciplines – i.e. designers,

architects, construction process, etc.

GREEN BUILDINGS ENCOMPASSES6 DIFFERENT CATEGORIES

GREEN REPORT | LATINAMERICA | DECEMBER 2010

AVERAGE SAVINGS – GREEN BUILDINGS USA

Sustainable Sites

Water E�ciency

Energy and Atmosphere

Indoor EnvironmentalQuality

Materials and Resources

Innovation in Design

COLLIERS INTERNATIONAL LATIN AMERICA | P.2

Sustainable construction has multiple bene�ts, given that it is based on 3

fundamental principles called “The Triple Bottom Line” consisting of Economic

Prosperity, Social Responsibility and Environmental Management.

ENVIRONMENTAL BENEFITS:Improves and protects ecosystems and biodiversity.

Improves the quality of both air and water.

Reduces solid waste.

Sustains natural resources.

ECONOMIC BENEFITS:Reduces Operating Costs.

Increases the value and bene�ts of company assets.

Improves the productivity and satisfaction level of employees.

Optimizes the economic performance during its complete life cycle.

HEALTH AND COMMUNITY BENEFITS:Improves heating, acoustics and air quality.

Increases the level of comfort and health of occupiers.

Relieves local infrastructure stress levels.

Improves overall quality of life.


ECONOMICPROSPERITY

ENVIRONMENTAL

STEWARDSHIP

SOCI

ALRE

SPON

SIBI

LITY

THE TRIPLEBOTTOM

LINE

BENEFITS ACHIEVED

- 8% - 9% in operational costs savings. (*)

- 7.5% increase in property value. (*)

- 6.6% improvement in return on investment (ROI). (*)

- 3.5% increase in building occupancy levels. (*)

- 3% increase in lease rates. (**)

- 40% savings in water usage. (***)

- 24% - 50% savings in energy consumption throughout the entire building life cycle. (***)

- 22% - 16% increase in productivity of workers and students. (****)

- 13% savings in maintenance costs. (****)

- 27% increase in occupancy satisfaction levels. (****)

- 20% improvement in the perfor-mance of students in exams. (*****)

- 2.5 days ahead in discharge rates from hospitals. (****)

(*) Source: Mc‐Graw‐Hill Construction, Key Trends in the European and U.S. Construction Marketplace SmartMarket Report 2008.

(**) Source: Mc‐Graw‐Hill Construction, Greening of Corporate America SmarMarket Report 2007.

(***) Source: Kats, G (2003). The Costs and Financial Bene�ts of Green Building: A report to California’s Sustainable Building Task Force.

(****) Source: USGBC

BENEFITS OF SUSTAINABLECONSTRUCTIONS:

-

-

-

-

-

-

-

-

-

-

-

-


The �rst step in the process is fundamental - it consists of de�ning the

sustainability level of the project. There are several sustainable construction

certi�cations such as BREEAM , Green Star , CASBEE , GSBC and LEED

among others and they all have di�erent levels of sustainability (see table). The

World Green Building Council -WorldGBC - promotes the adoption of all

the di�erent systems of sustainable construction certi�cation – the WorldGBC

is an organization that has as a main objective facilitating the exchange of

information regarding the environmental performance of sustainable buildings

in the di�erent green building councils in each country.

The LEED (Leadership in Energy and Environmental Design) Certi�cation was

created by the US Green Building Council and it is actually the most widely

used certi�cation in America and one of the most utilized around the globe

(more than 120 countries).

Once a sustainability level has been decided, it is important to integrate each

one of the resources and disciplines in the design, construction and operation

process. These are the teams in charge of design, construction, subcontractors,

users and building operators. This has to be done to ensure that all the di�erent

groups work as a team to achieve better synergy and achieve the sustainability

goals set at the beginning of the process.

The integrated design is one of the most important factors in the development

of sustainable buildings and a key element to avoid going over budget.

BREEAM Green Star CASBEE GSBC LEED

Pass One Star C Bronze Certi�cate

Good Tow Stars B Silver Silver

Very good Three Stars B Gold Gold

Excellent Four Star A Platinum

Five Stars S

Six Stars

Note: The levels are not comparable in between, that means, a star Green Star is not equivalent to the LEED Certi�ed

WORLD GREEN BUILDING COUNCIL

FOUNDING GLOBAL MEMBER WGBC

EXISTING COUNCILS INLATIN AMERICA:

FUTURE COUNCILS INLATIN AMERICA:

HOW TO START ASUSTAINABLE PROJECT:


Argentina Green Building Council (AGBC)

Colombia Green Building Council (CCCS)

Mexico Green Building Council (CMES)

Green Building Council Brazil (GBC Brasil)

Guatemala Green Building Council (GGBC)

Costa Rica Green Building Council. (CRGBC)

Peru Green Building Council (PGBC)

Panama Green Building Council. (Panama GBC)

Uruguay Green Building Council. (UYGBC)

Chile Green Building Council. (Chile GBC)

*Source: World GBC & GBCs Website.

® ® ® ®

®

®

®

® ® ® ® ®


HOW MUCH MORE EXPENSIVE IS A SUSTAINABLE CONSTRUCTION?

Generally, most people think sustainable construction is costly but in reality it is

not more expensive and in some cases it can even be cheaper than

conventional construction. The most commonly made error that makes a

sustainable project more expensive is to decide or modify after the design

process the desired level of sustainability - this is what results in many of the

additional costs. Another mistake is to work individually without any

interaction among the di�erent teams and professionals working on the project.

This increases the cost of hiring professionals because of the many extra hours

needed to �x errors that could have been avoided.

4 LEVELS OF SUSTAINABLE LEED® CERTIFICATION:

Leadership inEnergy andEnvironmentalDesign

LEED V3Platinum

80 – 110 Pts.

Gold

60 – 79 Pts.

Silver

50 – 59 Pts.

Certi�cate

40 – 49 Pts.

COST COMPARISON OF SUSTAINABLE CONSTRUCTIONS

As mentioned before it is necessary to determine the level of sustainability

desired for the project and then decide how many “points” to achieve given that

there some more expensive than others but that in the end translate into more

savings in the operation of the project. Nevertheless, these costs can be greatly

reduced or even eliminated if sustainability objectives are clearly de�ned in the

pre-design stage.

Platinum

Gold

Silver

Certi�cate

6.8%

2.2%

1.9%

0.66%

How to achieve sustainability?

1. Determine the level of sustainability.

2. Integrate the costs of design and construction.

3. Evaluate the cost-bene�t of the points wished to obtain.

Study Case

Case Study: Homecenter Sodimac – �rst retail LEED Certi�cate store in Latin America.

LEED CERTIFICATE , Silver Category, Points: 34/69�SUSTAINABLE SITE: WATER EFFICIENCY: ENERGY & ATMOSPHERE: MATERIALS & RESOURCES: INDOOR ENVIRONMENTAL QUALITY:INNOVATION & DESIGN PROCESS: REGIONAL PRIORITY:

WATER SAVING:higher than 24%ELECTRICITY SAVINGhigher than 350,000 kwh per year.


10/15 Pts.3/5 Pts.

6/14 Pts.2/11 Pts.11/11 Pts.2/5 Pts.

®

*Source USGBC

®

®


ESTABLISHED: Argentina – www.argentinagbc.org.arBrazil - www.gbcbrazil.org.brColombia - www.cccs.org.coMexico - www.mexicogbc.org

EMERGING: Chile – www.chilegbc.clCosta Rica – www.crgbc.orgGuatemala - www.guatemalagbc.orgPanama – www.panamagbc.orgPeru – www.perugbc.org.peUruguay – www.uygbc.org

PROSPECTS: Ecuador - www.ecuadorgbc.orgParaguayDominican Republic – www.drgbc.orgVenezuela

GLOBAL34,618 projects registered.6,495 certi�ed projects.28,123 certi�ed projects in process. 124 countries.137,223 accredited profesionals.

LATIN AMERICA523 projects registered.33 project certi�ed buildings. 490 certi�ed projects in process. 25 countries.467 accredited profesionals .

WORLD GREEN BUILDING COUNCILS


20 Established 6 Emerging 25 Prospective 25 Associated Groups

*Source - WorldGBC

*Source - WorldGBC

*Source - USGBC

*Source:: World GBC - October 1st, 2010



4

5

2

13

7

9

21

13

18

26

12

20

31

27

35

47

73

94

134

52

68

158

1

1

1

1

2

2

2

3

4

8

12

14

17

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1 T 2010

2° T 2010

BRIT

ISH

VIR

GIN

ISLA

NDS

URU

GUAY

PERU

PAN

AMA

COST

A RI

CACO

LOM

BIA

ARGE

NTI

NA

CHIL

EM

EXIC

OBR

AZIL

2

2

2

2

2

1

4

1

4

2

2

4

1

5

2

5

4° T 20091° T 20102° T 20104° T 20091° T 20102° T 20104° T 20091° T 20102° T 20104° T 20091° T 20102° T 20104° T 20091° T 20102° T 20104° T 20091° T 20102° T 20104° T 20091° T 20102° T 2010

CUBA

GUAT

EMAL

AEL

SA

LVAD

OR

CAYM

AN

ISLA

NDBE

RMUD

ARE

PUBL

IC

DOM

INIC

AN

1

1

1

1

1

1

1

1

1

1

1

2

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

4° T 2009

1° T 2010

2° T 2010

JAM

AIC

AFA

LKLA

ND

ISLA

NDS

PUER

TO

RICO

TRIN

IDA

D Y

TOBA

GOSA

NTA

LUCI

APA

RAGU

AY

ECUA

DOR


3

5

3

3

175

82

64

142

98

76

49

37

29

14

8

4

5

Projects In Process Certi�ed Projects

TOTAL LEED® CERTIFIED PROJECTS AND IN PROCESS

NETH

ERLA

NDS

ANTI

LLES

On average green building projects take 2 years from the time they are registered to their �nal certi�cation. However, it is important to mention the exponential increase in registered projects between 1st and 2nd semester of 2010 in Brazil and a twofold increase in certi�ed projects during the same period in Mexico.

Regarding Argentina, Chile, Colombia, Costa Rica and Panama an important increase in the short term is expected, given the tendency in new sustainable projects.

In the short term it is even possible to experience an increase in this trend given the level of importance some governments currently give to green initiatives.

Currently, more than 46% of all green projects are related to o�ce and retail projects followed by residential and hotel/resorts projects.

On the other hand it is important to notice the big gap that still exists between Latin America and the rest of the world regarding public infrastructure projects.


35.01%

0.40%

0.40%

1.01%

1.21%

0.00%

0.40%

1.01%

0.40%

3.22%

7.85%

2.82%

0.80%

0.40%

3.02%

8.85%

8.05%

11.47%

2.41%

2.21%

0.80%

0.60%

0.20%

0.00%

0.20%

6.84%

4.28%

1.50%

4.68%

0.39%

3.21%

5.88%

0.33%

1.99%

1.07%

1.96%

3.28%

2.92%

24.69%

2.03%

1.12%

2.75%

4.19%

9.02%

2.80%

2.64%

1.25%

1.14%

0.44%

0.14%

0.55%

6.87%

Latin America Projects

Global Projects

0.40%

3.13%

MILITARY INSTALLATIONS

LIBRARY

CAMPUS

COMMUNITY CENTERS

ANIMAL PROTECTION INSTALLATIONS

SCHOOLS

UNIVERSITY/COLLEGE

STADIUM/SPORT ARENAS

FINANCES & COMMUNICATIONS

DAYCARE

HOTEL/RESORT

INDUSTRIAL

LABORATORIES

OFFICE SPACE

PUBLIC SAFETY

PARKS

RECREATION

MULTI-UNIT RESIDENTIAL

RESTAURANT

RETAIL

MEETING ROOMS

HEALTH

THEATRES

TRANSPORTATION

SINGLE FAMILY DETACHED HOUSING

LOW INCOME HOUSING

SPECIAL NEEDS HOUSING

OTHERS

TOTAL LEED® PROJECTS BY TYPE

5.76%


The LEED Rating systems are the di�erent certi�cations available to projects.

In this way a new project can chose to obtain from 1 to 3 certi�cations: LEED

for Core & Shell, LEED for Commercial Interiors and LEED for Existing

Buildings: Operations & Maintenance. It is important to mention that the LEED

for Existing Buildings: Operations & Maintenance certi�cation is for both

buildings LEED certi�ed or not and it is the only one requiring renewal. On the

other hand the LEED for Core & Shell certi�cation is the only one allowing for

pre-certi�cation. The complete and o�cial names of the LEED 2009 rating

systems are:

WHAT IS THE LEED RATING SYSTEM?

TOTAL LEED PROJECTS BYRATING SYSTEM


26

171

243

7

43

8

7

17

1

LEED FOR NEWCONSTRUCTIONS

TOTAL LEED® PROJECTS INLATIN AMERICA BY RATING SYSTEM

*Statistics October 12, 2010.-It was not possible to obtain the total number for Homes.-Neighbourhood Developments and Retail are only available in the US. -Health is currently on its approval process.

NEWCONSTRUCTIONS

BUILDING LIFE CYCLE

HOMES

NEIGHBOURHOOD DEVELOPMENTS

CORE & SHELL

NEW CONSTRUCTIONS

SCHOOLS, RETAIL AND HEALTHCARE

EXISTINGBUILDINGSOPERATIONS &MAINTENANCE

DESIGN CONSTRUCTION OPERATION

LEED FORNEIGHBOURHOOD

DEVELOPMENTS

LEED FORCORE & SHELL

LEED FORSCHOOLS

LEED FORRETAIL

LEED FOREXISTING

BUILDINGS:OPERATIONS &MAINTENANCE

LEED FORCOMMERCIAL

INTERIORS

LEED FORNEIGHBOURHOODDEVELOPMENTS

LEED FORCORE & SHELL

LEED FORSCHOOLS

LEED FORRETAIL

LEED FOREXISTING

BUILDINGSOPERATIONS &MAINTENANCE

LEED FORCOMMERCIAL

INTERIORS

Projects In Process

Certi�ed Projects

34

178

260

44

*Source GBCI™: Green Building Certication Institute - Statistics October 12, 2010. COLLIERS INTERNATIONAL LATINOAMÉRICA | P.9

139

2920 2920

16,133

1209143

49

1327574

3,496

66242

19,629

3,4944,247

188 12,75385

5,400

GBCI™: Green Building Certi�cation Institute

Projects In Process

Certi�ed Projects

Total Projects

COMMERCIAL INTERIORS

Since May 2009 a LEED Specialist is an accredited professional with all the

knowledge and experience in sustainable construction. Any obtained

credentials need to be renewed every two years through continuing education,

practical experience or submitting the exam again. The �rst tier exam is called

LEED Green Associate. The second tier exam is called LEED Accredited

Professional with specialty and has �ve separate exams to allow for individual

specialization.

WHO IS A LEED AP?

Source GBCI, Professionals Credentials


3

3

2

3

2

5

1

3

2

4

0

0

0

0

0

0

0

0

0

VENEZUELA

URUGUAY

TRINIDAD & TOBAGO

SURINAM

SANTA LUCÍA

DOMINICAN REPUBLIC

PUERTO RICO

PERU

PARAGUAY

PANAMA

NICARAGUA

MEXICO

JAMAICA

BRITISH VIRGIN ISLANDS

MALVINASISLAND

CAYMAN ISLAND

BERMUDA ISLAND

HONDURAS

FRENCH GUIANA

GUAYANA

GUATEMALA

EL SALVADOR

ECUADOR

CUBA

COSTA RICA

COLOMBIA

CHILE

BRASIL

BOLIVIA

BELICE

BAHAMAS

ARGENTINA

NETHERLANDS ANTILLES

TOTAL LEED AP® & LEED GREEN ASSOCIATE.

46

68

36

32

128

54

9

6

6

7

LEED PROFESSIONALS BY SPECIALIZATON IN LATIN AMERICA

70

127

039 0

LEED GreenAssociate

LEED AP LEED APBuildingDesign +

Construction

LEED APOperations +Mantenance

LEED APHome

LEED APNeighbourhoodDevelopment

LEED APInteriorDesign +

Cosntruction

258

LEEDGREENASSOCIATE

ID+C HOMES 0+M ND BD+C

LEED LEED LEED LEED LEEDAP AP AP AP AP

COLLIERS INTERNATIONAL LATINOAMÉRICA | P.10*Source - GBCI™: Green Building Certi�cation Institute - Statistics October 12, 2010.

17

8

7

15

LATIN AMERICA

Mario RiveraMarket Research Director

One Queen St. East, Suite 2200Toronto, OM MSC 2Z2Phone: (416) 777 [email protected]

Colliers Latam Green Report December 2010

Documents

Transcript of Colliers Latam Green Report December 2010