Savannah Business Report & Journal
Green Buildings Can Save Money as Well as the Planet
May 26, 2008

Green buildings don’t necessarily call for builders and buyers to put their principles ahead of their pocketbooks.

It’s not just Hollywood actors like Ed Begley, Jr. – even major corporations and stuffy federal bureaucrats are on board with green building. The cost difference is slim to none. It’s just good sense, really – make smart choices in the design, building or renovation phases and then enjoy the continuing benefits, such as lower utility bills. Who wants to spend more on the electric bill?  

Other benefits include increased productivity. Green buildings are also increasingly better investments than non-green buildings – two recent studies show that green certified buildings outperform peers in occupancy rates, sale price and rental rates. Green buildings can add up to huge environmental changes, since energy use by buildings makes up more than a third of the energy consumed in the United States. 

Savannah is well-equipped to cash in on the trend.  With more than 100 green-accredited professionals in Savannah, you can find someone who knows how to make it happen.

“Green buildings make good business sense – it’s a smart, cost-effective choice,” said Rhoda Brown, Property Manager for Savannah based sustainable real estate development company Melaver, Inc. “It’s also the smart choice for the environment and the world our kids will inherit. It’s a win-win situation – you do the right thing for your business, and it’s the right thing for the environment and our future, too. Green building is going to be standard, the routine approach to design and construction, in the not so distant future, because once people understand the benefits, they won’t want the alternative.” 

Consider:  the average LEED-certified (Leadership in Energy and Environmental Design)  building use 32 percent less energy and 36 percent less total energy than regular new buildings, with energy savings in the highest level LEED buildings approaching 50 percent. Water usage in LEED-certified buildings is 30 percent less than non-LEED buildings. Leadership in Energy and Environmental Design certification is the internationally-recognized standard for high performance, low water and energy use buildings awarded by the U.S. Green Building Council. With rising energy prices and interstate fights over water, green building looks like an even smarter choice for the future. 

Despite the mainstream embrace of green building, some consumers and businesses are still discovering green building, so here’s a look at the myths and facts about green building.

MYTH: only tree-hugging, tie-dye wearing, Grateful Dead-listening hippies are into this stuff. 

Fact:  Federal, state and local governments, educational institutions and non-profit organizations are developing green buildings.

Fact: The following list is a mere sampling of the major corporations that have built one or more LEED certified buildings: Adobe Systems, Bank of America, Delta Airlines, Gap, Inc., Home Depot, IBM, JP Morgan, Microsoft, Starbucks, Nike, REI, Sony, Target, U.S. Steel, and Wachovia. Plus an obscure Arkansas company called Wal-Mart. Various LEED initiatives including legislation, executive orders, resolutions, ordinances, policies, and incentives are found in 77 cities, 24 counties, 19 towns, 28 states, 12 federal agencies, 12 public school jurisdictions and 36 institutions of higher education across the United States. Over 40 percent of Real Estate Investment Trusts in the United States are actively pursuing energy efficiency and green building upgrades with another 30 percent planning to do so. 

“Tie-die t-shirts, holey jeans and noodle dancing at Widespread Panic concerts are not indicators of environmental awareness by any means,” said Melaver, Inc. Sustainability Associate Michael Frey.  “Today, advocates for sustainability are found across all walks of life – even in even the most conservative of places, jobs and organizations.” 

MYTH: Green buildings cost more.

Fact:  Study after study has shown a slim to non-existent cost premium for building high performance green buildings. 

In 2003, Gregory Kats, of Capital E energy consultants, released a study showing that the average construction premium for a sample of 33 LEED buildings across the country was 1.84 percent. 

In 2004, the U.S. General Services Administration (the agency that builds or leases millions of square feet for federal offices, courthouses and special facilities) reported that the anticipated construction premium for new federal courthouses would range from a negative 0.4 percent for a “low-cost” LEED-Certified facility, to a high of 8.1 percent for a “high cost” LEED-Gold facility.

In 2007, PNC Financial Group began a major green bank branch construction program. Their LEED-Certified branches cost PNC $100,000 less to build and take 45 days less to construct than comparable conventional bank branches. 

Savings in energy costs of 20 to 50 percent are common through integrated design and planning, site orientation, energy-saving technologies, light reflective materials, on-site renewable energy production, natural daylight and ventilation. 

INCREASED PRODUCTIVITYThe Environmental Protection Agency estimates the nationwide value of improved office worker productivity from indoor environmental improvements (such as high quality indoor air, access to views and natural light) to be $20 billion to $160 billion.

Lockheed Martin’s 600,000 square-foot high performance facility in Sunnyvale, CA reported a 15 percent drop in employee absenteeism – a savings that paid for the incremental costs of the new facility in the first year alone. 

MYTH: Finding someone with green building expertise is too difficult.

Fact: In Savannah alone, there are well over 100 LEED Accredited Professionals.  LEED AP’s have a thorough understanding of high performance green building practices and principles as well as the LEED rating system and its application.  Local LEED APs include architects, engineers, general contractors, consultants, interior designers, planners and even a couple of commercial real estate agents.

Nationwide over 40,000 people have become LEED APs since USGBC launched the accreditation program in 2001.

There are approximately 30 LEED certified and registered projects in the Savannah area.  Projects include single family residences, condos, lofts, industrial buildings, office buildings an entire shopping center and an entire neighborhood. 

To receive LEED certification, a project team applies to the USGBC and documents the building’s compliance with LEED goals.  All projects must meet a set of prerequisites, to which, depending on the nature and use of the building, numerous credits (in each of the above areas) are added.  Innovation credits are awarded for strategies utilized that surpass LEED goals and criteria.