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Green Building and Value Engineering

Jerry Yudelson

Yudelson Associates

2011

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Green Building Growth - 33x!

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Trends favoring Green Building

• U.S.: Obama Admin. Focus: energy efficiency/green jobs

• European Union: Energy Performance Labeling

• Global: Corporate social responsibility concerns

• U.S.: Green building momentum since 2000– 30,000 projects in LEED system– Over 5 billion sq.ft.

• UK: More than 200,000 BREEAM Buildings

• Global: Green Building Councils in over 70 countries!

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Importance of Building Green

In the year 2040, 75% of the U.S. built environment will be either new or renovated (300 billion sq.ft.), compared with today.

We can transform our energy consumption and CO2 production by constructing and renovating these buildings to green standards.

Source: AIA Research Corporation

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The Good News

• It is still possible to halt CO2

concentration at 450 ppm (vs. 380 now) by 2040 with concerted effort (and at less than €40 per metric ton)– No new technologies!

• Buildings are the only Life Cycle Cost-positive solution– Issue is finance, not

economics

• 25% of total carbon solution can come from buildings, including homes

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Business Case for Green Buildings

• Financial/economic return

• Risk mitigation

• Ease of financing

• Marketing & PR

• Productivity/health gains

• Recruitment/retention

• Corporate sustainability

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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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Perceived Business Benefits

• 8% to 9% operating cost reduction

• 7.5% building value increases

• 6.6% improved return on investment

• 3.5% increase in occupancy ratio

• 3.0% increase in rent

Source: McGraw-Hill Smart

Market Reports, 2007 & 2008 Bentley Prince Street carpet mfg. plant,

L.A.

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Genzyme Center

• Biotech company

• Cambridge, MA

• 900 employees

• LEED Platinum, 2004

• Turnover reduced 5%/year– Value: $2 to $5 million

Per Year• $6 - $11/sq.ft.

– Cost @ 5%: $7.50/sq.ft.

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Issue: Early Intervention Adds Value

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Solution: The Integrated Design Team

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Method: Cost Transfer Away from MEP

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Result: Evolutionary Path of Green Building

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With VE, Lean Becomes Green

• Lean Themes– Reduce carbon footprint– Eliminate waste– Build in resiliency

• Going Beyond Green– Grid independence

(mission-critical)– Net zero energy use– Net zero water supply

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The Future is Green, But…

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

Ask yourself: how green will buildings and cities be in 2015?

How can SAVE members participate in the green building revolution? Spain Wins FIFA World Cup 2010

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THANK YOU!