GOOD DESIGN BRINGS ENVIRONMENTAL AND ECONOMIC VALUE BY AIDAN STRETCH Miller/Hull Partnership A growing number of architecture, engineering and planning firms are starting to analyze how their work affects the environment with the goal of providing sustainable development solutions for the design and construction of new buildings and communities. Swales treat all runoff from Patagonia's distribution and office building in Reno. Efficient fixtures and daylighting put the building's energy use 60 percent below industry standards. Sustainable development can create both economic and environmental value. It is similar to the total quality management movement which proved that it is possible to improve quality and reduce costs, in other words, to achieve the seemingly impossible. These solutions extend our definition of quality to include social and environmental value and capitalize on increased efficiency and productivity. Green buildings are a good example of sustainable development practices at work. Through the design of a building's systems, choice of materials, waste stream and energy consumption, a green building minimizes its effect on the environment. Many green buildings cost significantly less to operate and maintain than conventional buildings, allowing financial resources to be reallocated. Businesses are fast realizing that this approach not only has environmental benefits but also improves their effectiveness and competitive advantage. However, this is only half the story. Recent studies by the Rocky Mountain Institute indicate that these operational savings are insignificant in comparison to the potential savings from Design of the Northwest Federal Credit Union headquarters maximizes ventilation and daylight with operable glazing and light shelves. Night flushing dilutes day time pollutants. increased productivity. Improving indoor air quality, occupant comfort, daylighting and energy efficiency has resulted in a 10-15 percent increase in productivity of employees and staff. Wages and salaries make up about 70 percent of an organization's operating costs, so providing a high quality work environment through green buildings is an easy choice. These productivity gains could have a significant impact on a company's bottomline. A rule of thumb suggests a factor 5 relationship, that is a 1 percent increase in productivity translates into a 5 percent increase in operating income for a company. Similarly, a 5 percent increase in productivity translates into a 25 percent increase in operating income. Other studies show similar results for sales in retail outlets. These facts explain why many nationally and internationally recognized businesses are embracing the concept of green buildings. AT&T, WalMart, Sony, Herman Miller, Bank of America and The Gap are just a sample from an ever increasing list. The challenge then for the design industry and related professions is to capture the value from green developments in the design, planning, engineering, construction, assessment and financing aspects of real estate. Clearly, each profession requires new tools to realize a competitive advantage. The Miller/Hull Partnership has recently completed two facilities which illustrate how this economic and environmental value is created through design, planning and engineering. Patagonia's energy efficient systems should pay back in one to three years. These green buildings are also an example of how enlightened clients can practice environmental stewardship and good business at the same time. The NW Federal Credit Union Branch & Office Headquarters is a 40,000-square-foot building located in Seattle. The site planning and organization allowed most of the existing trees to be retained. The building is narrow along the north-south direction and elongated in the east-west direction. This maximizes the opportunity for natural ventilation and daylight harvesting through extensive shaded operable glazing and light shelves at the north and south elevations. Lighting equipment is dimmed by photosensors to maximize the energy savings from daylighting. Ventilation also provides a night flushing cycle to cool the building's exposed thermal mass, and improve indoor air quality by diluting pollutants that build up during the day. The night flush cycle is 100 percent outside air. This daylighting and lighting strategy combined with an energy efficient mechanical system and naturally ventilated areas reduce energy consumption by 30 percent below the already stringent Washington State Energy Code. Interior and exterior material selections throughout were screened for environmental considerations, indoor air quality and life cycle costing considerations. The building was a market-priced commercial building ($4.6 million), which costs less to operate and is a healthier, more productive workplace. This project recently received a 1996 Architecture + Energy Award from the AIA and Bonneville Power Administration. Patagonia's Worldwide Distribution and Office facility is a 184,000-square-foot building in Reno. The site planning and organization orients the building to southern exposure focusing views towards the adjacent Truckee River. To the south of the building the river ecosystem is re-established up to the building edge and incorporates biofiltration swales which treat all site runoff before entering the river. The building envelope is designed to maximize daylight where appropriate in the warehouse and office areas. This is achieved through extensive shaded glazing, light shelves and skylighting provided by a combination of sun-tracking lights in the warehouse and north lights in the office areas. In combination with the building optimized daylight section, lighting systems were designed to be highly efficient. The combination of efficient lamps and fixtures with motion and daylight controls provided a 60 percent reduction in energy consumption below industry standard systems. The building is superinsulated to optimize heating and cooling loads and conditioned by hydronic radiant heating and cooling panels. This system provides an estimated 50 percent reduction in energy use over a conventional mechanical ventilation system. The system was complemented by a combination of displacement ventilation and mechanically assisted stack effect. Again, interior and exterior material selections throughout were screened for environmental considerations, indoor air quality and life cycle costing considerations. The project cost was $6 million and the range of energy efficient systems, technologies and measures are expected to payback within one to three years. These and many other projects show that green buildings really do make sense. They begin to bridge the gap between development and the environment that has existed for so long, by simultaneously creating both economic and environmental value in projects. This approach has implications for the real estate and development community, beyond the design and planning professions. Those in the industry that meet this challenge will be positioning themselves in the market through both cost and differentiation, providing a clear strategic competitive advantage.