Articles - August, 2006

USGBC Notes 20% Increase in LEED APs

The number of LEED Accredited Professionals (LEED AP) has increased 20 percent year over year, bringing the total number of LEED APs to 25,000.  Accreditation is received from the USGBC, and the rapid increase in LEED APs is a sign of the trend towards sustainable design, construction, and architecture.

There is an extremely informative website/magazine called Building Design & Construction (BD&C), which audits the number of LEED APs in largest United States design and construction firms. They’ve posted a complete list of their results, and here are the top five.

1. Perkins + Will.
2. Gensler.
3. Hellmuth, Obata, Kassabaum (HOK).
4. Stantec.
5. DPR.

BD&C’s article lists LEED AP numbers for each of the top 100 giant design and construction firms. This information is helpful, especially for companies and developers making their first foray into the green business, because it demonstrates who has the knowledge and expertise to build green.

Green building and sustainable design is a major trend that anyone in the industry should start to realize: real estate agents, designers, engineers, architects, contractors, home builders, developers, owners, REITs, RE management companies, etc.

Adobe's San Jose Building Goes LEED-EB Platinum Green

Adobe_headquarters_leedeb As a person smitten with the entrepreneurial bug, I always love to read Business 2.0 magazine when it comes in the mail.  And it’s not that the magazine has ideas for me to start businesses, but it makes me think differently about trends and the future …it makes me come up with new business ideas.  Business 2.0’s September Magazine contains an article about Adobe’s retrofitted USGBC-certified, LEED Platinum building.    

This article is awesome because Jeff Nachtigal, the author, actually quantifies each retrofit and illustrates that going green makes economic sense. Some of my counterparts in the blogosphere are adamant that going green is about doing the right thing for our planet, and I respect that, but as a businessman and entrepreneur, going green must make economic sense. Generically speaking, public companies have a fiduciary duty to the shareholder to create value, so there should be some financial incentive to adopt green concepts into buildings. Now there is. 

Here are some of the eco-friendly renovations and the break even calculations:       

(1)  Waterless Urinals with Nontoxic chemicals:
Cost:                        $35,374
Annual Savings:        $14,896
Breakeven:               2.4 years

(2)  Automatic Faucets:
Cost:                        $110,000
Annual Savings:        $  24,000
Breakeven:                4.6 years

(3) Compact Fluorescent Lights:
Cost:                        $ 11,000
Annual Savings:        $105,000
Breakeven:                .11 years

(4) Automated Irrigation System:
Cost:                         $ 3,610
Annual Savings:         $10,000
Breakeven:                .36 years

(5) Timed Outages of Garage Exhaust Fans & Outdoor Lighting Systems:
Cost:                        $    150
Annual Savings:        $68,000
Breakeven:               .002 years (immediately!!)

These are hard, quantifiable savings. The payback on investments like these is relatively soon, the most attenuated being close to five years out. That's not a bad payback period at all! So these are rational, smart, responsible decisions, and other companies should take notice that Adobe has raised the bar for building operating efficiencies. It's time to hop on the train.

What’s more amazing is that Adobe has been able to foster the right business climate that allows employees to notice waste and make the right changes on a going forward basis. That’s where the real benefits will be realized…and further, employees buy into the benefits and go home making similar changes to their homes. Then they will tell their friends how they saved on their monthly utility bills because of some pragmatic, and economic, changes. Great article Business 2.0!

Good Links:
++Adobe's Announcement to Work with USGBC to Go LEED
++Press Release of Adobe's Receival of Platinum Certification
++Adobe's Environmental Committment
++GreenBiz Artice with CEO Comments

Differentiation Strategy: EcoBroker, GreenHomesForSale, Etc.

Hawaiiprefab Applications for building permits have slowed down, some projects have been tosssed, and interest rates are inching higher. Homes sales will be ugly, to use the headline of one news article. All the while, real estate agents are scampering, trying to drum up business and continue the high life. I’m not a real estate agent, but from what I understand, the good ones make real good money and the bad ones make good money, so it hasn’t been that bad of a market…until, the Fed started to cool things off. Enter: EcoBrokers, GreenHomesForSale.com, and differentiation.

I noticed two articles on the same day about EcoBrokers, one on USGBC website and the other on MarketWatch. Becoming an Ecobroker means differentiating yourself from hundreds of other run-of-the-mill real estate agents, and it’s smart business. According to the National Association of Home Builders, the 2005 green building market ($7.4 Billion) is expected to reach from $19 to $38 billion by 2010. The tipping point, or the point where more green homes are built than non-green homes, is supposed to be in around 2007.

According to the MarketWatch article, buyers are interested more in the energy-saving, cost-cutting, sustainable features than the "save the earth" rhetoric (go figure!). And while features can vary from home to home (read: there will be a green standards war just like the current standards war between HD-DVD and Blu-Ray), these EcoBrokers are going to have a leg up in explaining to purchasers and sellers the best ways to market homes. Certification for EcoBrokers will cover topics such as energy-efficiency ratings, asbestos, VOCs and lead paint, and indoor air quality.

Even more interesting, at the website, www.ecobroker.com, there is a designation guarantee that says the following: "Earn the EcoBroker designation, and apply the marketing and sales skills you learn. During the first year of your designation, you will increase your personal commission income, or we will refund 100% of your designation fee." From what I understand, the costs are $395, so that should be money well spent. The market is heading that direction (as the NAHB quote urges), so it’s smart to get in early.

Hawaiiprefab2 Another website is www.greenhomesforsale.com. I like the concept; it’s kind of a DIY-type place, and looks like it can be an attractive place for home listing as the listings increase. I looked at some of the listings and they can hardly be considered green (McKinney, Texas home), but it’s a good start. I found a prefab in Hawaii, that I know I’m gonna dream about tonight–if only money was sustainable on my backyard tree!

What I don’t understand about this website, however, is why they don’t invest some money in design and get rid of all those convoluted google ads, etc., sticking up all over the place like a bunch of weeds. It’s hard to take a website serious with all those cheap pay-per-click ads all over the place…my recommendation: pick a strategy for cash generation and stick with it–drive that strategy home. Looks like it costs about $60 to list for 3 months, so stick it out while your making your way down the long tail of sales.

Overall, I digg the future of what’s going on in the green real estate industry. It would be a smart move for real estate agents to get on this and learn the jargon. As the demand for green homes increase, those that can’t speak the jargon will be left trying to catch up. And might I suggest, as a parting note, since buyers are interested in the cost-benefits of green, the jargon includes being able to calculate payback periods, breakevens, inflation, and discounted cash flows, etc.

Page 2 of 4«1234»


Popular Topics on Jetson Green