The Business case for Green Buildings
The Business case for Green Buildings
Green buildings deliver a suite of financial benefits above and beyond conventional buildings. Extensive financial performance data has been compiled and published from numerous U.S. and Australian green buildings. The South African market is on a similar trajectory with projects already showing similar results. However, at present, there is not the same depth of project data, though the same trends are appearing indicating the following benefits:
Benefits for Tenants
Lower Operating Costs
With leases typically structured so that tenants pay for their own operating costs like electricity and water expenses, reduced consumption becomes a critical benefit to tenants of green buildings.
Increased productivity
Numerous studies have linked improved indoor environments to greater productivity, including increases in the amount of work accomplished, better cognitive performance, improved worker retention, and reduced absenteeism.
With salaries constituting a significant expense to a company, a small improvement in productivity can have significant impacts on profitability.
Competitive edge in attracting talent
With employees’ growing heightened awareness of options available, an office building’s superior environment may contribute towards a competitive edge in attracting talent and keeping employees satisfied.
Benefits for Owners & Managers
Lower Operating Costs
With leases typically structured so that tenants pay for their own operating costs like electricity and water expenses, reduced consumption becomes a critical benefit to tenants of green buildings.
Increased Property Values
With decreased operating costs, potential lease premiums and more competitive, future-proofed buildings, valuation premiums of 11%-12% have been empirically proven in the US and Australian markets.
Enhanced marketability
A green building, viewed as technologically advanced and socially responsible, creates a differentiated product in the market and contributes positively to company image of owner and tenants
Reduced liability and risk
Green buildings will better withstand potential market disruptions such as increases in utility costs, energy and water supply problems, tightening legislation, carbon taxes, the impact of mandatory energy efficiency disclosure, technical obsolescence, and employee health-related liabilities
Ability to attract and retain quality tenants
Secure tenants more quickly, shorter vacancy, and fewer turnovers. In particular, large multi-nationals and high-profile companies are typically looking for buildings that align with their image and corporate values – environmentally, socially, and with regards to their employees.
Green Building Features at Cecilia Square
A green building is one that incorporates design, construction and operational practices that significantly reduce or eliminate the negative impact of development on the environment and occupants with strategies for addressing:
• Energy efficiency;
• Greenhouse gas emission abatement;
• Water conservation;
• Waste avoidance reuse and recycling;
• Pollution prevention – noise, water, air, soil & light;
• Enhanced biodiversity;
• Reduced natural resources consumption;
• Productive and healthy environments; and
• Flexible and adaptable spaces.
Responsible use of the site includes:
• Reducing the storm water run-off to less than pre-development levels
• Reusing biologically valuable topsoil on site
• Eliminating night-time light pollution
• Landscaping with indigenous species
Reductions in potable water will be achieved through:
• Rainwater harvesting for toilet / urinal flushing and landscape irrigation.
• Water efficient fittings for taps, urinals and toilets.
• Landscaping with local indigenous plants with reduced irrigation requirements
Occupants can partake of amenities:
• Cyclist parking with shower & changing facilities
• Preferential parking for fuel-efficient vehicles
• Located close to shopping, errand and dining facilities
• Recycling infrastructure
Interventions aimed at reducing energy use include:
• A building design that takes advantage of natural daylight through orientation and footprint.
• Lighting that uses a combination of daylight sensor-controlled dimmers, efficient fittings, and occupancy sensors.
• Exposed building structure that acts as a thermal mass to cool the spaces during the day which gets re-cooled by cool night flush air reducing the requirements for air-conditioning.
• Monitoring of energy consumption to more effectively manage and reduce its use; and providing tenant access to this information
Healthy working environments are provided, including:
• Natural daylight within the office spaces
• Visual access and views of the natural environment
• Use of non-toxic and low-emitting finish materials
• Increased ventilation of fresh air
• Spaces designed for occupant thermal comfort
Information supplied by Michelle Ludwig of PJ Carew Consulting
For more information about Cecilia Square go to: www.ceciliasquare.co.za
For Sales and Letting enquiries go to: http://www.shepherd.co.za/