Green Buildings are the Places to Be

• 36% of total energy use
• 65% of electricity consumption
• 30% of greenhouse gas emissions
• 30% of raw materials use
• 30% of waste output (136 million tons annually)
• 12% of potable water consumption

As these figures suggest, we have passed the tipping point – being “green”, or energy efficient in office buildings is not just about conservation but about a higher standard for buildings.  In the near future, occupants will demand sustainability in their real estate to control costs, with environmental benefits being a secondary benefit. 

Businesses’ top two expenses frequently are human resources and energy (and if not the top two, real estate costs are another major expense).  Just as a poor location can have a negative impact on productivity, energy-efficient locations not only cut costs but can boost productivity.  Occupancy in a “green” building is good business practice by not just saving money but improving overall health and well-being for the inhabitants by providing natural air and light, fewer toxins and climate control

While slightly more expensive to build (an estimated <1%-4% additional for commercial buildings), environmental-friendly and energy efficient-systems can pay for themselves very quickly (11-36 months) as they are up to 20% less costly to operate.

Among the corporate adherents of the “green” building movement are institutions such as Adobe, Bank of America, Citigroup, Genzyme, IBM, Microsoft, PNC, Toyota, General Motors, Ford, Honda, Wal-Mart, Target and Home Depot.

Although New York City currently lags behind cities such as Seattle, Portland, Pittsburgh, Washington D.C. and Boston in adopting and implementing environmental standards in new construction, the following properties represent the “green” elite in New York City:

• One Bryant Place/Bank of America Building – 42nd Street & Sixth Avenue (Currently under construction)
• $115/rsf asking rent
• Tenants will include:
• Bank of America
• Marathon Asset Management
• Elie Tahari 
• 300 West 57^th Street/The Hearst Building – 57th Street & Eighth Avenue(Owned and fully-occupied by The Hearst Corporation)
• 7 World Trade Center – Vesey & Greenwich Streets
• $70/rsf asking rent
• Tenants include:
• Moody’s Corporation
• ABN/Amro
• Darby & Darby
• 4 Times Square - 42nd Street & Broadway
• Fully-leased to Conde Nast and Skadden Arps Slate Meagher & Flom

But if you’re unable to cough up triple-digit rents to get into a “green” building, what can the average midtown office tenant do to improve its carbon footprint before New York City suffers another blackout?  Here are suggestions for commercial tenants:

• For tenants in existing spaces with long-term commitments:
• Actively recycle paper, metal, glass
• Turn off the lights at night
• Purchase a scanner to conserve paper
• Stop printing emails (ditto)
• Purchase supplies locally
• Modify layout to take advantage of existing natural light
• Use mirrors to reflect existing lighting
• Open the windows
• Collect rainwater for plant irrigation
• Use cacti for landscape plants
• For tenants planning a relocation to a leased-facility:
• Hire a “green” architect
• Design a bright, open-plan layout
• Install motion sensors for any artificial lighting
• Install low-flow waterless or water-efficient bathroom fixtures
• Purchase refurbished and pre-owned furniture and workstations
• Use linoleum, not vinyl flooring
• Install LED-illuminated signage
• Use recyclable construction materials, such as:
• Recycled steel
• Recycled carpeting (carpet backing has 20,000 year landfill life)
• Recycled ceiling tiles
• Non-formaldehyde particle board
• Consider alternative insulation (Habitat for Humanity utilizes recycled blue jeans and Styrofoam)
• “Green” paint selection
• For tenants planning a relocation to an owned-facility
• Select site and design for sustainability
• Employ and enable reusable energy sources
• Install skylights
• Install roof garden or “green” roof
• Install sensors to monitor HVAC
• Install “green” refrigeration systems
• Use sustainable construction materials
• Reduce operation of parking garage exhaust fans
• Use porous paving materials in parking lots

By doing a portion of the above, tenants will see improvements in both operating costs and worker productivity that will outweigh the expense of implementation.