Expert Article

The "High-Performance" Fit-Out: LEED-CI

At Markward Group, we’ve been looking for ways to apply this green approach to the real estate business. For almost a decade, the US Green Building Council (USGBC), a non-profit association of builders, architects and environmental groups, has been publishing green standards for new construction, existing buildings, homes and neighborhoods through a project called Leadership in Energy and Environmental Design, or LEED. More recently, LEED has also established standards for Commercial Interiors (LEED-CI), which applies to tenant fit-out in the real estate industry.

These days, it seems everyone is going green. Energy-efficiency, recycled content and environmental footprints are now everyday concepts familiar to most Americans. We look for ways to make our cars use less gas, reduce the amount of waste we put in landfills and harness renewable energy resources like wind, solar and hydro power. These green initiatives are notable because they aren’t just virtuous ways to protect the environment; they make good business sense because they reduce long-term costs.

According to statistics provided by the USGBC, each year 30% of the total energy consumed in the United States, and 60% of the nation’s electricity, is used by buildings. In addition, construction, refits and renovations contribute to the disappearance of open space and generate tons of solid waste that ends up in landfills.

Markward Group is beginning to see our clients paying more and more attention to their office environment. Tenants are looking for “high-performance buildings” that are environmentally responsible, economically profitable and healthy places for their employees to work. Owners are beginning to recognize that offering LEED-CI certified fit-outs or incorporating environmentally-friendly design features into a project help their properties stand out in the market. Green design features can also help reduce building operating costs and even minimize possible litigation stemming from indoor air quality issues.

In conjunction with several owners, Markward Group has been investigating the steps necessary for green fit-outs. A building does not need to be LEED certified in order for tenant fit-outs to meet LEED Commercial Interior standards. The USGBC’s Commercial Interiors Rating System awards points in several categories, with 21 points out of a possible 57 being sufficient to certify a space. Ideally, every green fit-out would be LEED-CI certified, but realistically sometimes the best that can be done is 10 points or 15 points, which is an improvement over not following these standards at all.

The LEED-CI criteria awards points in several areas: Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality and Innovation in Design. For example, the Sustainable Sites category promotes buildings with advanced stormwater management, using on-site renewable energy, near public transportation or situated in a brownfields redevelopment. Other criteria include reducing water usage; using energy efficient lighting, HVAC, equipment and appliances; reusing existing building components and minimizing construction waste by reusing or recycling materials; using locally produced or rapidly renewable materials; improving ventilation and internal air quality; using low-emitting materials for adhesives, sealants, paints, carpets and furniture; and using daylight to light spaces.

Some of these are really simple, easy changes that pay for themselves over time, such as installing motion-detectors to turn off lights after users have left the room or using low-flow toilets in restrooms. And according to the USGBC, “Studies of workers in green buildings reported productivity gains of up to 16%, including reductions in absenteeism and improved work quality,” so spending a little more for paint, carpeting and adhesives that don’t emit odors or irritating fumes can be recouped through productivity gains, even without considering other possible benefits such as higher employee retention rates and improved morale.

Another reason to seriously consider building green is to get ahead of the legislative trend that seems to be developing. Governments at various levels – local, state and Federal – have enacted or are contemplating a variety of energy-conservation laws. The City of San Francisco is contemplating a proposal to mandate all new buildings larger than 25,000 SF must be LEED certified by 2009. California is expected to take the state’s building codes green the next time they are revised. In Washington, the US Congress recently passed the Energy Independence and Security Act. This bill is best known for tightening vehicle fuel economy regulations, but also establishes higher efficiency standards for lighting, appliances and HVAC systems in commercial buildings. It also includes a Zero-Net-Energy Commercial Buildings Initiative, which has the goal of making all commercial buildings in the US use zero net energy by 2050.

There are a few hurdles to clear before getting a space LEED-CI certified. Projects must be registered through the USGBC website and designs must be submitted for review by the USGBC, which also collects fees to cover their certification costs. Some buildings may not be suitable for achieving certification, so the pool of possible buildings may be smaller than the general market. And of course the initial costs for design, materials and installation will be higher as well, but usually no more than 5%.

Despite these challenges, the potential rewards are making more companies take a look at going green. For their employees, for their image, for their operating expenses and yes, for the planet, they’re changing the way they think about office space.

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