Combines best global evidence into one definitive resource Targets the decision-makers: developers, investors and owners, and major tenants Looks specifically at the financial bottom line

Design and Construction Costs Asset Value Operating Costs Workplace Productivity and Health Risk Mitigation

Business benefits are received by different stakeholders at each stage of the building life cycle.

Building green does not necessarily need to cost more. There is an overall trend in the reduction of design and build costs as markets mature. Upfront costs are often offset by a decrease in long-term life cycle costs.

To effectively reduce the construction cost of green buildings: Adopt green strategies and include them in the budget from an early stage, to avoid more expensive bolt-on strategies Hire experienced design and construction teams Use an Integrated Design Process (IDP), from pre- design phase through to post- occupancy, where all stakeholders are engaged from the very beginning Yarze -Target BREEAM Very Good Dar EL Aytam School IC School– LEED Gold

Where does the gap come from? - Inability to forget historical data – lack of awareness that costs are coming down - Showcase buildings that may have additional costly finish upgrades not related to green & - buildings featuring highly visible but non viable green tech (integrated PV, Wind, …)

How Do Green Buildings Influence Value? They attract tenants more easily (higher occupancy rates) command higher rents and sale prices. have lower operating expenses have lower yields In markets where green is more mainstream, brown discounts are emerging.

Asset Value Effects on Sales Price Yarze -Target BREEAM Very Good

Asset Value - Effects on Rental

Asset Value Effects on Occupancy Rates

Green buildings can save money through reduced energy and water consumption and lower long-term operations and maintenance costs. Energy savings typically exceed any build cost premiums within a reasonable payback period.

Operating Cost - Energy Saving Yarze -Target BREEAM Very Good IC School– LEED Gold Residence Batroun

Operating Cost - Overall Operational Cost Savings (2003) based on a life cycle of 20 years for 33 LEED-rated projects in the United States

Evidence shows that green design attributes can improve occupant productivity, health and well-being. Investing in better indoor environments can lead to better returns on one of every companys greatest assets - its employees.

Workplace Productivity & Health- Impacts of Indoor Environments Cost Savings

Sustainability risk factors can significantly affect rental income and the future value of real estate assets, in turn affecting their ROI Changing tenant preferences and investor risk screening may translate into risk of obsolescence for inefficient buildings

Facts from GBC Australia: YearBdgs CeritfiedBdgs RegisteredGreen Cost Premium Yes No Romilly Madew – CEO GBCA Can we wish the same? What do we need to do? Facts from Lebanon: YearBdgs CeritfiedBdgs RegisteredGreen Cost Premium Yes 2014???

Download the Report: #GBBusinessCase Ziad Haddad MBA, MME, BE, LEED® GA MEP / Sustainability Consultant Board Member - LGBC Thank You