By Ashley Katz
Communications Manage
USGBC
February 2009
We’ve been hearing so much lately about the current economy and its crushing impact on the real estate market, both for commercial and residential starts. However, a variety of recently released reports point to green building as a key solution to many of the challenges America faces today, from a faltering economy and unemployment to rising energy prices and dependence on foreign oil.
Green building has the potential to be a significant driver for economic recovery. McGraw-Hill Construction’s Green Outlook 2009 report “Trends Driving Change” shows that by 2013, the overall green building market is likely to more than double to $96-140 billion. Other studies have shown that the LEED© green building certification program has the potential to contribute billions to the economy. A Greener World media study reported that LEED certified projects are directly tied to more than $10 billion of green materials, which could easily reach more than $100 billion by 2020. The U.S. Green Building Council’s (USGBC) nationally recognized LEED program provides third-party review and certification of buildings’ design, construction and performance in five key areas of environmental and health concern, including energy efficiency, water efficiency, materials and resources use, sustainable site development and indoor air quality.
And economic hardship isn’t keeping commercial real estate executives from building green. A recent Turner Construction Company’s report “Green Building Barometer” found that 75% of those professionals — including developers, rental building owners, brokers, architects and engineers — would not let the credit crunch discourage them from building green. In fact, 83% said they would be “extremely” or “very” likely to seek LEED certification for buildings they are planning to build within the next three years.
Commercial buildings owners are continuing to allot funds to green initiatives. According to “2008 Green Survey: Existing Buildings,” a study funded by Incisive Media’s Real Estate Forum and GlobeSt.com, the Building Owners and Managers Association (BOMA) International and the U.S. Green Building Council (USGBC), more than 80% allocated these funds and 45% plan to increase sustainability investments in 2009. The same study showed that 60% of commercial building owners offer education programs to assist tenants in implementing green programs in their space, up 49.4% from last year, illustrating a growing understanding of the importance of environmental awareness among employees and customers in addition to the use of green materials and systems.
And while jobs continue to be cut and unemployment continues to rise, green building is able to generate new green jobs for Americans. The Center for American Progress and the Political Economy Research Institute at the University of Massachusetts Amherst found in a September 2008 study that a national green economic recovery program investing $100 billion over 10 years in six infrastructure areas would create 2 million new jobs! With a focus on green building retrofits and alternative energy sources, that investment could be paid for with proceeds from carbon permit auctions under a greenhouse gas cap-and-trade program. That’s roughly the same amount of investment as the tax rebate checks sent as part of the April 2008 economic stimulus plan but would create 300,000 more jobs.
Green buildings have the potential to help employers as well by helping companies cut costs and manage operating expenses. Rising energy costs are causing building owners and managers to tighten their belts, and the buildings they use day in and day out cost them millions in unnecessary operational costs. Respondents to Turner’s “Green Building Barometer” said their green buildings have resulted in lower energy costs, with 68% reporting lower overall operating costs. By investing in green technology in both new and existing buildings, building owners and managers are able to reap long-term operational and maintenance savings, all the while bettering the environment.
The national economic recovery package calls for green building-related initiatives that will fuel as many as two million green jobs in the next five years. Green school construction and renovation is also among the proposed package, helping not only to put American’s back to work but also to create healthier educational environments that are more conducive to learning.
In short, green building offers a practical solution and an opportunity for the building community to lend its weight to tackling challenges facing society today.
