Facility Managers Reap Operational Savings

LEED® for Existing Buildings (LEED-EB) is the USGBC’s latest rating system which focuses on the sustainable operation of existing buildings. LEED-EB provides a road map to improve performance and minimize environmental impacts for both existing building operations and building upgrades spanning the life of the building. LEED-EB enables organizations of all sizes to manage their facilities more effectively to ensure they are getting the most out of their investment over time. Across the country, such organizations are committing themselves to LEED-EB and beginning to see the benefits of sustainable performance.

Who’s Committing to LEED-EB

LEED-EB was officially launched in October 2004. To date, already over 33 million square feet of building space has been registered. One such building is the Joe Serna Jr. California EPA Headquarters (Cal/EPA) Building in Sacramento, CA which was originally developed and is now managed by the Thomas Properties Group. The Cal/EPA Building was one of the first LEED-EB registered pilot projects, and in 2004, it earned the first LEED-EB Platinum Rating—the highest possible rating in the LEED-EB rating system.

Located in downtown Sacramento, Cal/EPA Building is the city’s largest high-rise real estate property. The 950,000 square foot building was constructed in 2000 and stands 25 stories tall. The building was initially constructed with a number of sustainable features in place, which were refined, expanded, and documented by Thomas Properties Group, LLC (Thomas Properties) following the building’s construction to support LEED-EB certification. The Cal/EPA Building was initially certified LEED-EB Gold in November 2003. By July 2004, further review of operating practices improved their rating; making the facility the first LEED-EB Platinum certified building.

The Cal/EPA Building was based on the latest green design and engineering principles to conserve energy and natural resources. Every aspect of its design and construction incorporates sustainable, yet economically competitive, technologies, materials, methods, and processes. As operators of this project, Thomas Properties has incorporated state of the art green building practices. All janitorial, maintenance, tenant improvements, and equipment replacements are carried out incorporating practices and materials that improve air quality, reduce energy usage, and maximize resource re-utilization, reduction, and recycling/recyclability.

Benefits of LEED-EBb

Lower Operational Costs
Operational costs of a LEED-EB building are significantly lower due to increased water and energy efficiency as well as improved indoor comfort levels that improve employee attendance and productivity. Much of the savings is attributable to the relatively well known energy efficiency improvements to major building systems such as high efficiency HVAC and lighting systems as well as a variable speed drive connected to the chiller. However, the building also utilizes a plate and frame heat exchanger to reduce on/off cycling of the chiller equipment, extend equipment life, and save energy by providing free night and wintertime cooling. All totaled, the Cal/EPA building operates 26% more efficiently than California’s 1998 energy code and has documented utility savings of $100,000 annually.

While many are familiar with these types of building improvements and their resulting energy savings, the Cal/EPA building has also seen significant operational savings from some unconventional sources. Craig Sheehy, Director of Property Management for Thomas Properties, initiated a vermicomposting program which has been very successful, diverting approximately 10 tons of waste from landfills and saving $10,000 annually. In fact, Mr. Sheehy is exploring selling the results of composting which he has termed “bureau-crap” back to the city of Sacramento for additional savings. Other non-traditional improvements include the elimination of garbage can liners and the use of reusable cloth bags in centrally located recycling bins which save $60,000 and $20,000 per year respectfully.

By switching the operating hours of the janitorial staff from night hours to more regular daytime hours, Thomas Properties was able to reduce janitorial staff turnover. It was also able to decrease the building’s energy use by 8% by reducing the need for after hours heating and lighting. This schedule shift also had the unforeseen benefit of reducing janitorial complaints by 70% as employees and janitorial staff were able to interact and forge amicable relationships.

Increased Asset Value
Improved operational performance, indoor systems, and management practices help to attract and retain tenants and increase asset value. The Cal/EPA Headquarters building calculates annual operational savings of $1.00 per square foot as compared to the downtown Sacramento average for Class A office buildings. Using a 10% capitalization rate, the annual cost savings have increased the asset value of the building by nearly $10 million.

Through significant reductions in operating expenses, I have determined that green building operation is not only good for the environment, it is good for the bottom line
—Craig Sheehy, Director of Property Management, Thomas Properties Group, LLC

Demonstrated Corporate Commitment to Sustainability
LEED-EB offers organizations the ability to align their workplace and building management portfolios with their goals. The Cal/EPA Headquarters was built with sustainability in mind and applying LEED-EB to this building was primarily a matter of fine tuning the operating practices and documenting what was already being done. LEED-EB certification provided third party verification of their sustainable principles.

As you consider LEED-EB for your own organization and building, keep in mind that LEED-EB is designed to be a flexible rating system that can be applied to the unique circumstances of individual buildings. Ultimately, the best information for guiding your project will come from your and others’ knowledge of your organization, building, and the LEED-EB Rating System.

How to Get Started with LEED-EB

  • Visit www.usgbc.org/LEED to learn more about LEED-EB, review the Rating System, and check out the FAQs.
  • Attend a LEED-EB Workshop. Workshops provide a detailed exploration of the Rating System, including typical ROI results and effective strategies for greening your building operations. A complete schedule of LEED workshops is available at www.usgbc.org/events.
  • Encourage your company to join the USGBC. Not only are Members recognized leaders in supporting a better built environment, they also receive a wide array of discounts on certifications, accreditation, workshops and resource materials.
  • Get involved with your local chapter. USGBC Chapters routinely host informative presentations and are a great way to connect with other professionals who have experience implementing LEED-EB. Find your local USGBC chapter at www.usgbc.org/chapters.

About Thomas Properties
Thomas Properties is a full service real estate operating and institutional investment management company focused on the development, acquisition, operation and ownership of commercial properties throughout the U.S. Their mission is to provide superior value to tenants, investors, partners, lenders and the firm, through superbly planned, executed and managed real estate property. Since its founding in 1996, Thomas Properties has developed, restructured or acquired properties in the West Coast and Mid-Atlantic regions of the United States with approximately 7.4 million rentable square feet of space.

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