SIOR Goes Green Triple Bottom Line Benefits of Green Buildings

Triple Green Building Bottom Line Benefits Reduced Environmental Impact. Peak Efficiency. Improved Capitalization Rates. Increased Marketability. Higher Lease Rates. Improved Productivity. Reduced Absenteeism. ENVIRONMENT ECONOMICS PEOPLE

Green Buildings are: Environmentally Responsible Smart Site Selection Sustainable Building Components Profitable Reduces Operating Expenses Reduces Energy usage and cost Reduces Water & Sewer usage and cost Reduces Waste Disposal usage and cost Healthy Places to Live and Work Enhances Profitability Improves Productivity Reduces Absenteeism

Successful Green Projects Alcoa World Headquarters, Pittsburgh PA Bank of America Headquarters, New York NY Duracell Corporate Headquarters, Bethel CT Reebok World Headquarters, Anton, MA Toyota Motor Sales USA – South Campus, Torrance CA Wal-Mart Supercenter, McKinney TX San Jose Civic Center, San Jose CA San Mateo County Crime Lab, San Mateo CA Emery University Winship Cancer Institute, Atlanta GA Pentagon Athletic Center, Arlington VA The Dalles Middle School, Dalles OR City of Seattle Police Support Facility, Seattle WA Wells Fargo Financed two Green Buildings for $64 Million Royal Caribbean Cruises, Springfield OR Banner Bank Building, Boise ID

United States Building Impacts: 12% Water Use 30% Greenhouse Gas Emissions 70% Electricity Consumption 65% Waste Output

Increased Productivity in Green Buildings Schools: 20% Better Test Performance Hospitals: Earlier Discharge Retail: Increase in Sales per Square Foot Factories: Increased Production Offices: 2-16% Productivity Increase 20% BETTER TEST PERFORMANCE SCHOOLS EARLIER DISCHARGE HOSPITALS 2-16% PRODUCTIVITY INCREASE OFFICES

Selection of team members knowledgeable of sustainable green practices is critical These Team members include: Commission Agents (VIP) General Contractors Architects Engineers, etc.

Smart Site Selection for Green Buildings Smart Site Location: Proximity to Existing Infrastructure Protecting Environmental Resources Proximity to Services, New Construction Make Use of Passive Solar Heating/Cooling Grayfield, Brownfield or Adaptive Reuse Site Compact Development Walkable: Connections to Surroundings Transportation Oriented: Mass Transit Public Transportation Mixed-use (recreation, employment, shopping and living)

Green Broker Building Checklist: High efficiency building envelope Efficient lighting & window specifications Efficient HVAC specifications Low flow bathroom fixtures Efficient Roof Insulation Efficient windows Architect experienced with Green building technologies Contractor experienced with Green building technologies Current Recycling program Building Orientation Electrical Requirements (Watts / SF): 2 vs 5

Green Broker Building Checklist: cont. Construction Waste Management: Develop and implement a construction waste management plan to reduce the amount of material sent to the landfill. Recycled Content Material: Use materials with recycled content. Use Certified, Salvaged and Engineered Building Materials. Use Water-Permeable Walkways and Parking Areas. Reduce Heat-Island Effect for Roofing and Paving Sustainable Property Management

Green Broker Building Checklist: cont. Low / Zero Volatile Organic Compounds (VOC) Paints, Primers and Sealants Formaldehyde-free Composite Green label Certified Floor Covering Exhaust Fans- Bathrooms & Kitchens Proper Ventilation HVAC Sizing Water Heaters: Mold Prevention

Green Broker Building Checklist: cont. Cold Water Pipe Insulation Materials in Wet Areas Basements and Concrete Slabs: Vapor Barrier Water Drainage Integrated Pest Management

Green Operations by the Occupants Monitoring Behavior Lighting Bathroom Storage Areas (Sensors) Stairwells (Sensors) Unoccupied Areas (Sensors) Water Electrical Computer and Office Equipment Energy Star Phantom Energy Green Cleaning Products Recycling

Average Savings of Green Buildings Source: Capital E ENERGY SAVINGS 30% CARBON SAVINGS 35% WATER USE SAVINGS 30-50% WASTE COST SAVINGS 50-90%

VALUATION & BRAND APPRECIATION INSURANCE EMPLOYMENT EQUITY SECURITY REDUCED PUBLIC INFRASTRUCTURE COSTS Green Building Owner Benefits

Green Building Economic Benefits A $4 investment per square foot in building green nets a $58 benefit per square foot over 20 years $0.50 WATER SAVINGS $1.20 EMISSIONS SAVINGS $5.80 ENERGY SAVINGS $8.50 OPERATIONS & MAINTENANCE SAVINGS $46.00 EST. HEALTH & PRODUCTIVITY BENEFITS COST $4.00 PSF BENEFIT $62.00 PSF Total Benefits

Green Building Operational Benefits Enhanced Productivity: Reduced Absenteeism Enhanced Recruitment Improved Employee Morale Average Productivity Gains High-Performance Lighting Enhances Productivity by 6.7% Individual Temperature Control Enhances Productivity by 3.6%

Employees Perceive Value Working in Green Buildings Overall Environmental Benefit Reduced Energy Consumption Lower Operating Costs Health Benefit Positive Marketing and Promotion Increased Productivity

Green Building Community Benefits Maximizes existing infrastructure Reduces environmental impact Reduces Sprawl Reduces Air Pollution Reduces Water pollution Conserves Raw Materials Reduces demand on Services: Water, Sewer and Solid Waste Increases tax base: schools, fire, police, etc. Revitalizes communities

Green Building Cost vs Conventional New buildings are easier and cheaper to make green Existing building components Shell building High efficiency building envelop Commercial Interiors Multi tenant buildings require phasing as each lease expires

Federal Tax Deductions for Green Buildings: A federal tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard * Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, *See The Energy Policy Act of 2005

Green Building Challenges First cost vs life cycle cost Credibility of benefits Changing habits

Green Building Financing and Insurance Benefits The United Kingdom recently required all building as of 2007 to be green. European investment community anticipates 15% higher rents in green building. Existing buildings not easily converted to green experience a considerable reduction in value. Higher cap rates for green building due to: Mitigation for increasing utility costs Healthier building equates to reduced liability (sick building) Healthier buildings enhance marketability Reduced reserves Disaster preparedness

Why Go Green? Improves the environment for our children 1450% return for employers Increased Productivity Decreased absenteeism Healthier employees Increased marketability Reduced Liability