Home / Archive / Designing for Dividends
Thursday, May 17, 2012
Special Report: May 2006
Designing for Dividends
Green means profit and productivity in the building industry
Story by Michael P. Scott
For years, the term “green building” conjured up perceptions of an environmentalist-led movement with little in the way of broad appeal. Many early green projects focused exclusively on energy efficiency, often through the use of those infamous green roofs — rooftop gardens that help buildings retain heat in the winter and stay cool in the summer.
But today, green building principles are going mainstream and can be seen in many airport, government, school, hospital, library and private projects.
Gov. Schwarzenegger has been a trailblazer in the California green building movement. He signed an executive order requiring a 20 percent energy reduction in state-owned facilities by 2015. A number of California mayors have also enacted their own resolutions regarding green building standards for their city structures.
One of the other major drivers of the sustainability movement is the U.S. Green Building Council. Composed of leaders working to promote buildings that are environmentally responsible, profitable and healthy places to live and work, the group has championed the Leadership in Energy and Environmental Design program.
LEED offers various levels of certification for new construction, major renovation, commercial interior, new home and other types of construction and design projects. The certification levels — silver, gold and platinum — are achieved by meeting increasingly higher requirements as designated by the coalition.
“LEED represents a very good model and common language for the industry and serves as a catalyst for future advancements in the field,” says Jack Paddon of Williams + Paddon Architects + Planners of Roseville.
Green, or sustainable, buildings are structures that are designed, constructed, renovated, operated and reused in an ecological and resource-efficient manner. While most of the emphasis to date has focused on their ability to yield significant energy savings, there is a growing body of evidence that suggests they can protect occupant health and enhance employee productivity.
“The benefits of a healthy environment on workplace
productivity cannot be overlooked.”
— Craig Greenough, director of sustainable construction, DPR Construction
“There has been quite a bit of talk these days not only about better operating efficiencies, but [also about] soft costs savings tied to improvements in the work environment that enhance employee productivity, health and retention,” says Craig Greenough, director of sustainable construction for DPR Construction.
Recent studies suggest that buildings made with environmentally sound products can reduce the rates of respiratory disease, allergies, asthma and other “sick building” maladies while enhancing worker performance.
“The benefits of a healthy environment on workplace productivity cannot be overlooked when calculating the return on investment of a construction project,” says Greenough.
Many of these benefits are achieved through sophisticated energy- and water-efficiency systems integrated into the construction and design process. There has also been a push to utilize recycled building materials. Recycled content has received major attention in part because its diversion from California’s landfills has been mandated by the Integrated Waste Management Act.
The 25-story, 950,000-square-foot California Environmental Protection Agency building, completed in 2001 and located at 10th and I streets in downtown Sacramento, is one of the most recognized Capital Region models of energy efficiency and sustainability.
The building’s overhead lights dim on sunny days to enhance natural light in work areas, one of the keys to its energy efficiency. The building runs so well, it’s said to use two-thirds of the energy of a typical downtown office tower.
“I think that we’re moving towards a time when buildings like this will eventually become the norm,” says Craig Sheehy, director of property management for the Thomas Properties Group, which developed and now manages the EPA building. “Once we can demonstrate that the green concept works consistently from a return-on-investment standpoint, everyone will want to do this. It makes no sense to do otherwise.”
“Once we demonstrate that the green concept works from an ROI standpoint, everyone will want to do this.”
— Craig Sheehy, director of property management, Thomas Properties Group
In Natomas, DPR Construction is headquartered in a building designed by its neighbor, LPA Sacramento. The building is the first privately financed LEED-certified building in this region. It is among many projects that have successfully broken a green-construction myth — that upfront expenses are too pricey.
“While we were faced with high initial capital costs in the construction of our building, we reached our break-even point within two years,” says Greenough of DPR. “In any construction project of this type, it is important to look beyond the initial outlay of money and focus on the operating and other cost savings that accrue over the life of the building.”
Jack Paddon believes green design is rapidly moving toward the mainstream in all sectors of the building industry. “There has definitely been considerable talk about the green building and design movement, although there is sometimes more talk than substance,” notes Paddon. “I do believe, however, that we are quickly approaching the day when we’ll do away with the label of ‘green this’ and ‘green that’ and say that it is simply good design.”
