Definitely, say those in the field. “I recently lost a 20,000-square-foot office tenant to a Silver LEED [Lead-ership in Energy and Environmental Design] certified building that was $2.12 more per square foot than our building,” says Doug Webster, an office leasing specialist with Grubb & Ellis./Furman in Greenville, S.C. “The tenant’s broker said they preferred our location, layout, and lower rate, but the fact that the [building] owners were not willing to institute a formal
sustainability program caused this national engineering firm to select the LEED location.
National rental rate differences for Energy Star buildings vs. their peers have increased from $2.32 psf in 2005 to $4.73 psf in 2009. If only LEED-certified buildings are compared to non-certified buildings, the rental rate gulf is $9.06 psf. These are serious incentives for landlords to upgrade their office buildings. Landlords are quickly realizing that besides being environmentally minded, they must make energy-saving improvements simply to compete for tenants — especially in a down market.
Sealing the Envelope
What retrofitting measures offer the most return on the investment when either selling the building or attracting tenants and achieving higher rental and occupancy rates?
Energy savings is the obvious place to start. Te larger wastes are in lighting, heating, ventilation, and air conditioning systems, and the thermal envelope of the building. More than 70 percent of existing buildings have not upgraded lighting, HVAC, insulation, or windows, according to engineering research reports. Yet a 2006 U.S. Green Building Council survey found that building owners save 90 cents psf annually by retrofitting their properties, and earn back their investment in two to 2.5 years.
Before making any changes, find out where and how much energy is currently being used. Many utility companies will do a free or inexpensive energy audit to discover a building’s unique energy deficiencies and potential for improvement, says Timothy Buckley, LEEDAP,
an architect with Greenstone Architecture in Vancouver, Wash. “Based on the energy audit findings, you can then assess upgrade needs, estimate first costs and returns on the investments, and begin establishing priorities for upgrades,” Buckley says.
Lighting the Way
“If considering a wholesale lighting replacement, look at reducing lighting power budgets and using high-efficiency low-mercury fluorescent systems, or even LED,”
Lighting system upgrades range from simple changes to a complete replacement. Easy changes include reducing excessive or unneeded lighting. For example, on a small scale, one lamp can be removed from existing three-tube fl uorescent systems, and for larger areas, occupancy sensors and time clocks can automatically reduce hours of lighting. A Portland, Ore., building owner
replaced the 24-hour, seven-days-a-week fluorescent lighting in a four-acre parking garage with motion-activated lights that dim by 90 percent when no one is around. The same approach can be used in interior restrooms, storage areas, hallways, and other infrequently used common areas.
“If considering a wholesale lighting replacement, look at reducing lighting power budgets and using high-efficiency low-mercury fluorescent systems, or even LED,” Buckley says. “The initial cost of LED technology is still pretty steep; however, the energy savings over time are significant — up to 70 percent, according to some universities that have made the switch. And it may make it worthwhile when considering LED’s incredibly long life. The reduced maintenance and
costs savings associated with not having to re-lamp other systems can be a huge factor.”
Deregulated purchasing of electricity at lower rates is another area for great cost savings. Grubb & Ellis manages facilities-related purchasing for United Stationers at 80 locations across the U.S. It purchased electricity at lower rates in deregulated states for a savings of $865,000.
The owner of New York’s Sony Building also chose Grubb & Ellis to manage the building, including reducing energy and operating expenses. Solutions included making recommendations for electricity purchasing and including the Sony Building in a pooled bid. G&E also reduced peak rate charges by reviewing electrical charges and time-of-day usage records to determine spike usage. After isolating the cause and changing procedures, G&E reduced the building’s electrical costs by $1 million per year. A lighting retrofit resulted in additional energy savings and a local tax rebate of $400,000.
Full article available at www.cire.com
Lighting Retrofit Expertise
Value Energy Solutions is an Atlanta based lighting retrofit company that helps owners, managers and engineers reduce their energy costs. Value Energy Solutions has more than 30 years experience providing creative and effective lighting solutions that improve the illumination for building users and reduce electrical bills. Their expertise, wide selection and value pricing cannot be beat. For more information please call (678) 501-4880 or visit our lighting retrofit website- www.valueenergysolutions.com
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