The following post is by Kathleen O'Brien:
In early May, I traveled to Portland to the Cascadia Green Building Council's annual Living Future Conference. I enjoyed the conference a lot, and especially the very practical financial focus in several of the sessions.
Moving the needle on real estate investment was the topic of a Living Future panel including Jason Twill (Vulcan), David Baker (Earth Economics), Theddi Wright Chappell (Cushman & Wakefield), Stuart Cowan (Autopoiesis). They noted that investment in sustainable real estate seems to be "topping out" in the market at this time — at LEED Platinum. Their hope is to help the market cross that barrier into higher realms of sustainable achievement, such as the Living Building Challenge.
Jason, David, Stuart, and Theddi are coauthors of "Economics of Change: Catalyzing the Investment Shift Towards a Restorative Built Environment." The research study was funded by Bullitt Foundation, a long time supporter of environmental protection in the Northwest. The point of the study was to "provide evidence of monetized environmental and social benefits...currently not considered in conventional real estate model(s)." The authors hope to provide a defensible rationale for including these public and private benefits into investment models, appraiser methodologies, and supporting policies. This is especially important for U.S. real estate investments where ROI and IRR are the ultimate drivers of most transactions.
The report lays out the ABC's, if you will, of Ecosystem Goods and Services, the potential Ecosystem Services that Living Buildings might provide, and finally the opportunity to measure, monetize, and value those ecosystem services. The study takes a scholarly approach, a step up from the early days when we in the green building field had to rely more on reason and intuition, since we had little real data to base our assumptions on. (Not that reason and intuition is bad...it's what got us here, yes?).
The report also introduces the concept of integrated real estate investment modeling. From this layperson's view, it seems to build on the conventional model, rather than replace it — an approach that makes a good deal of sense. The methodology they propose will allow many environmental and social benefits currently valued at zero to be seen as economically valuable, and therefore marketable. In the next phase of their work, they plan to produce detailed calculations and case studies of the environmental and social benefits of Living Buildings, test the impact of these values of valuation models or appraisals, and create an open source prototype of the integrated real estate investment marketing tool to "demonstrate how environmental and social benefits can be embedded within a pro forma in an new building development context."
In addition to taking this tool out to the real estate development communities (appraisers and valuation specialists), they hope to provide a basis for changes in local, state, and federal policy that will acknowledge public benefits of Living Building development and incentivize it.
As Theddi noted, "right now investors are going for the low hanging fruit — energy efficiency — for example. We need to provide sufficient rationale if we want them to go beyond that."
Kathleen O'Brien is a long time advocate for green building and sustainable development since before it was "cool." She lives in a green home, and drives a hybrid when she drives at all. Having recently sold her firm, O'Brien & Company, she is now focused on leadership work with those "still in the trenches." For more info see www.emergeleadership.net
The following post is by Brad Kahn, president of Groundwork Strategies. He manages communications for the Bullitt Center project.
The roof of the Bullitt Center on East Madison Street is under construction now and all the structural elements are in place.
Today President Rosen Plevneliev from Bulgaria, who is a former real estate developer, will tour the Bullitt Center as part of a trade mission to Seattle.
After campaigning for president on a platform that included energy efficiency in buildings, Plevneliev will be in Seattle today before heading to the NATO summit in Chicago next week. His visit to Seattle is focused on international trade and economic development. In particular, he is interested in learning about green building and clean energy technology, which is why he is touring Bullitt Center, the world’s greenest office building.
In the next few weeks, we will begin outreach to brokers to begin marketing office space inside the Bullitt Center. It will be marketed at rates comparable to new class-A space in downtown.
The HVAC system is going into the building, including the six-story composting toilet system.
McGivra Place, the park next door, now has a final design direction and the process is moving forward, with re-development expected later this summer or early fall. The park project is the first to pursue the Living Building Challenge for landscapes.
Groundwork Strategies. He manages communications for the Bullitt Center project.
When the Bullitt Foundation began work on the Bullitt Center, Denis Hayes, the foundation's president and CEO, had a clear vision that the architecture should be regionally relevant. Noting that buildings in Seattle and Phoenix are too frequently designed in the same ways, Hayes set out to promote the idea of a "regional vernacular" in architecture that draws on the environment surrounding Seattle for guidance. And in the Pacific Northwest, there is no environmental feature more prominent than forests, making wood a logical building material.
Add in the fact that when it comes from a responsibly managed forest, wood is among the most environmentally friendly building materials, and it is only natural that the Bullitt Center is a heavy-timber framed structure.
As the first commercial building to pursue the Living Building Challenge, the Bullitt Center team is working hard to meet all 20 "imperatives," as the requirements are known. Included in this list is an imperative focused on "Responsible Industry," requiring that "all wood must be certified by the Forest Stewardship Council (FSC)" or from salvaged sources.
With construction well under way, wood framing for the Bullitt Center has begun.
And anyone who has passed the job site on 15th & Madison has likely noticed the glued, laminated timbers, or "glulams" as they are known in the industry. Manufactured by Calvert Glulams in Vancouver, Wash., the glulams offer several environmental benefits, in addition to being stronger than traditional sawn timbers. First, they are from forests certified to the standards set by the Forest Stewardship Council, which is widely recognized to be the most rigorous and prescriptive benchmark for forest management globally. All wood for the project comes from within a 1,000-kilometer radius, as required by the Living Building Challenge. In the case of the glulams, the wood came from FSC-certified Douglas fir forests in Idaho, so the project is helping support a regional economy for wood from responsibly managed forests. And because the glulams are manufactured by combining smaller dimensional lumber, they reduce pressure to harvest larger, older trees that historically were needed to mill large dimension timbers.
Over the next few weeks, expect to see the Bullitt Center take its full form, as the six stories rise from the construction site. The project is on track to be completed later this year.
In Fremont, a different kind of living building is in the works: it's being built by a private developer.Skanska USA’s first development effort in the Seattle market. (Talk about a way to come to the market with green guns-a-blazing!)
Brooks Sports is the anchor tenant and will take 80,000 square feet and move 300 employees into the space in late 2013. Skanska said it would lease the site from the owner, Fremont Dock Co. The site is at 3400 Stone Way N., next to the Burke Gilman Trail and near Lake Union.
This project is of course fascinating because it’s a living building, widely considered the toughest green building certification on the planet. But another thing that makes it stand out is who’s building it. All living buildings on this coast that I'm aware of are built by schools (University of British Columbia's CIRS project); nonprofits (the Bullitt Foundation's headquarters in Seattle); consortium's of city groups or donors (The Bertschi School Science Wing); or partnerships involving all of the above (the Oregon Sustainability Center in Portland). There's also a few home projects thrown in. These groups have various resources (tax credits, donors, endowments etc.) that a standard developer doesn't have access to.
Skanska's project in Fremont is the first I'm aware of to be built by a commercial developer on its own. Granted, it is being self-financed. But the fact that Skanska is building it means the company sees a future in living buildings. It's taking a chance! In the scale of things, it will be incredible to see how this project works out because it will inevitably be used as a living building test case for other developers.
Living buildings are fascinating creatures but they're not cheap. Generally, I'm hearing that developing a living building costs a third more than a standard project. Schools and nonprofits are willing to make that investment. But the formula gets more complex with private development. Adding to the complexity, Skanska is aiming for its project rents to be market rate.
Chris Rogers of Bullitt’s development partner Point32 says Bullitt's space will be market rate too, though it's being marketed towards environmentally-minded businesses and organizations. The Cascadia Green Building Council is one tenant. For these organizations, the environment is a critical part of what they do. For Skanska's more mainstream tenants, locating in a living building says they care. But Skanska's also got to do more convincing.
In this DJC article from last June, Peter Busby of Vancouver's Busby Perkins + Will said it cost his team $100,000 to go to living building status on two Vancouver projects. He said it generally costs $40,000 to have a project certified LEED gold. The Bullitt Center project is costing about $30 million, with Bullitt putting up half that amount and borrowing the rest from US Bank. Rogers of Point32 says a lot of the cost is a first-cost premium, because it’s the first time his team (or any team) is moving through a living building project of this size with the city. But there’s still a premium.
According to the International Living Future Institute, it costs $20,000 for living building certification of a building that is between 107,640 and 538,195 square feet.
Skanska’s project is also interesting because of what it could bring to the neighborhood. The end of Stone Way near Lake Union has a handful of stores but is kind of a dead zone. In a Seattle Times story, Ryan Gist, a neighbor called it "an odd, pseudo-industrial street that really doesn't do much for the neighborhood."
Once complete, the ground floor of this building will house Brooks' first ever retail concept shop. The goal is for the shop to act as a gathering place for the community and trail users.
There are some neighborhood concerns about the structure's height. Here's hoping a clean agreement can be made on that topic so this revolutionary project can move forward.
By the way, back in January, I wrote this post about the launch of Skanska's Seattle commercial development division. In it, I said:
"I'm curious to see what kind of projects they pursue, what kind of sustainable goals they target, and what kind of green technologies they might choose to pursue that others wouldn't be able to. Of course, they could simply go the LEED gold route. Or they could build something really innovative."
I don't want to say I told you so but it's fair to say this project falls to the later half of that spectrum. Now the question is to see how it plays out.
P.S. It's interesting to see the architecture firms with living buildings under their belts. This project is being designed by LMN. Bullitt's is designed by Miller Hull. The Bertschi project was designed by members of KMD Architects. I'm going to be waiting to see how long it takes for the area's other big green architecture firms to add a living building to their project list. At the current pace, I'd bet we'd see another two or three pop up.
This week, the Bullitt Foundation's Cascadia Center for Sustainable Design and Construction released a report detailing its energy performance metrics. For all you energy nerds out there, this is a pretty exciting development.
The document outlines how the six-story building will meet net-zero energy. The big
highlight is that it releases the planned EUI of the building, or Energy Use Intensity. An EUI score is expressed in units of thousands of BTUs per square foot of gross floor area. Based on 52,000 square feet of gross floor area, the project should have an EUI of 16. Based on 39,000 square feet treated floor area, a common European measurement, it would have an EUI of 21.
I was recently discussing EUI with members of a ZGF team. They told me the average EUI for an office building in the Pacific Norhtwest is 106.
The report also says the U.S. Department of Energy's Zero Energy Building database currently contains no comparable buildings.
The report includes a pie chart with sections for the center's different energy uses. The largest percentage at 23 percent will feed lights. The next highest amount of energy, at 10 percent are pumps. About 9 percent of the building's energy will feed monitors while 8 percent will feed workstations. Toilets will get .2 percent of the building's energy use.
To read the report, click here.
P.S. The Bullitt Foundation is hiring an administrative and grants assistant. The job description is here.
If you don't have a subscription to the DJC or don't click on our articles as they are locked, you might not know about our free special sections.
Special sections, written by people in a targeted industry for people in the industry, are free to read, meaning even you non-subscribers can access valuable information. Special sections come out about once a month and each section focuses on a different topic. This month's excellent topic is Building Green and I am thoroughly impressed with the breadth of this year's coverage.
In it, you'll find this excellent article by Michelle Rosenberger and Nancy Henderson of ArchEcology called "Watch out for 'greenwashing' by service providers." Among its interesting points, the article examines whether consultants can truly bring a LEED approach to a project without rigorous third party LEED certification. Interesting item to bring up.
There's this great article by Joel Sisolak of the Cascadia Green Building Council called "Two Seattle projects set 'net-zero' water goals," which looks at the region's water infrastructure and two living buildings (The Bertschi School's Science Wing and the Cascadia Center for Sustainable Design and Construction, both covered previously in this blog) that plan to go off the water grid and their challenges in doing so.
Then there's this article by Elizabeth Powers at O'Brien & Co. on whether green parking lots can be (gasp!) green. I'll let you read the article to learn more.
The section also has articles from representatives of Skanska USA Building, Mithun, MulvannyG2, GGLO, Scott Surdyke, Sandra Mallory of the city of Seattle and CollinsWoerman on topics ranging from the city's role in evolving practices to big box stores, student housing and public housing.
So go ahead, check it out and enjoy!
Recently, the Restorative Design Collective completed what will likely be the first living building in Washington State at the Bertschi School. Of course, we won't know whether it meets living building certification until it has operated for a year. But the project is designed to provide all its own energy, treat its own water and lay light on the land. It is called the science wing and will be a scientific learning area for students.
This is the first living building project to target the 2.0 version of the challenge (a tougher standard than the original), and the first project to be built in an urban area. The project was built largely through volunteer work, organized by a group called The Restorative Design Collective. The project cost about $1 million but members of the collective donated about $500,000 in pro bono time in addition to that.
Stacy Smedley, of KMD Architects and co-founder of the collective, said it is important to have a living building in the region where the challenge was born. Jason McLennan, CEO of the Cascadia Green Building Chapter, published the challenge at the end of 2006. Chris Hellstern, the other co-founder of the collective, is also at KMD.
The DJC story on the finished product is here, a story written last June details the founding of the collective and design plans here. If you don't have a DJC subsciption, this story is unlocked (meaning anyone can read it). It's a really interesting personal look at problem solving issues on the project. We also covered the installation of the building's SIPS panels on the Green Building Blog here.
For instance, the team focused heavily on water and has a system in place that would treat collected water to potable standards. But before it can do that, it must wait for state and local rules to change. A runnel, cut in the ground, will allow children to see flowing rainwater.
Bertschi will offer tours of the building, though it will usually be a science wing for students' education so tours must be pre-arranged. For more information, call Bertschi at 206-324-5476.
If you're interested in learning more about living buildings, check out the fifth annual Living Future (Un)Conference. This year it is in Vancouver, B.C. from April 27-29. As someone who has attended each of these conferences so far, I can say it is an incredible time.
Here are some pictures of the finished product. More pictures on my Facebook page here.