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The Green Facts

From retrofitting buildings with LED lighting to deploying innovative demand/response technologies, Chicago’s commercial real estate community is striving to implement sustainable practices that benefit the environment – and the bottom line. The following “Green Facts” reinforce that the commercial real estate industry is going green – and that strategy is here to stay.


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NATIONWIDE GREEN CONSTRUCTION ENERGY CONSUMPTION CHICAGO’S EFFORTS WHY BUILD GREEN?
Nationwide
Fact 1
U.S. buildings account for 38 percent of all greenhouse gas emissions and 72 percent of U.S. energy consumption (source: Environmental Information Administration, 2008 EIA Annual Energy Outlook 2009).

Fact 2
Green building and LEED certification is growing rapidly. As of June 2008, almost 180 million square feet of space had been LEED certified in some 1,500 projects (source: RREEF Research – “How Green a Recession? Sustainability Prospects in the U.S. Real Estate Industry 2009”)

Fact 3
Energy represents the single largest controllable operating expense for office buildings, typically one-third of variable expenses (Source: Xcel Energy)

Fact 4
Buildings scoring in the bottom 10 percent on Energy Star benchmarking used 4 times as much energy as buildings scoring in the top 10 percent (Source: Energy Star)

Fact 5
By 2009, 82% of corporate America is expected to be greening at least 16% of their real estate portfolios; of these corporations, 18% will be greening more than 60% of their real estate portfolios (Source: McGraw Hill Construction (2007). Greening of Corporate America SmartMarket Report.)

Fact 6
If there was a 30 percent reduction in energy consumption within commercial real estate it would:
  • Save $72 billion
  • Remove 120 billion pounds of carbon dioxide emissions from the air
  • Be equivalent of removing 12 million cars from the roads
    (Source: Environmental Protection Agency)
Fact 7
Seven out of eight developers and building owners, or 87 percent, indicated that greening their portfolio is a priority, while almost half, 45 percent expect to increase their allocation to sustainability in 2009 (source: The 2008 Green Survey: Existing Buildings)

Green Construction
Fact 1
The value of green building construction is projected to increase to $60 billion by 2010 (Source: McGraw-Hill Construction: Key Trends in the European and U.S. Construction Marketplace – SmartMarket Report).

Fact 2
The three largest segments for nonresidential green building construction —office, education and health care—will account for more than 80 percent of total nonresidential green construction in 2008. Source: FMI (2008). U.S. Construction Overview

Fact 3
The construction market accounts for 13.4% of the $13.2 trillion U.S. GDP (Source: Department of Commerce (2008). Annual Value of Construction Put in Place.)

Fact 4
The Green Business Council forecasts that the market for green architecture and buildings will reach $60 billion by 2010, up from $7 billion in 2005.
Chicago’s Efforts
Fact 1
Since 2004, Chicago office buildings have retrofitted over 15 million square feet of office space, saving $6,000,000 on energy costs (source: City of Chicago Climate Action Plan).

Fact 2
Chicago’s Merchandise Mart is the world’s largest green building—receiving Silver Certification from USGBC in Leadership in Energy and Environmental Design for Existing Buildings (LEED-EB).

Fact 3
Chicago leans the nation in green roofs, with over 400 buildings comprising 4 million square feet completed or under construction.

Energy consumption
Fact 1 Water use
Buildings use 13.6% of all potable water, or 15 trillion gallons per year. Source: U.S. Geological Survey (2000). 2000 data

Fact 2 Materials use
Buildings use 40% of raw materials globally (3 billion tons annually). Source: Lenssen and Roodman (1995). Worldwatch Paper 124: A Building Revolution: How Ecology and Health Concerns are Transforming Construction. Worldwatch Institute.

Fact 3 Waste
The EPA estimates that 136 million tons of building-related construction and demolition (C&D) debris was generated in the U.S. in a single year. Source: U.S. Environmental Protection Agency (1997). U.S. EPA Characterization of Building-Related Construction and Demolition Debris in the United States.

Fact 4
Compare that to 209.7 million tons of municipal solid waste generated in the same year. Source: U.S. Environmental Protection Agency (1997). Characterization of Municipal Solid Waste in the United States. Report No. EPA 530/R-98-007.

Why Build Green?
Environmental benefits:
  • Enhance and protect ecosystems and biodiversity
  • Improve air and water qualityuivalent of removing 12 million cars from the roads
  • Reduce solid waste
  • Conserve natural resources
Economic benefits:
  • Reduce operating costs
  • Enhance asset value and profits
  • Improve employee productivity and satisfaction
  • Optimize life-cycle economic performance
Health and community benefits:
  • Improve air, thermal, and acoustic environments
  • Enhance occupant comfort and health
  • Minimize strain on local infrastructure
  • Contribute to overall quality of life
  • The built environment has a profound impact on our natural environment, economy, health, and productivity.
    (Source: USGBC)
 
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