Environmentally-sustainable, or “Green,” buildings continue to be firmly on the agenda for real estate owners, developers and corporate owner-occupants. Almost all respondents to the Turner 2010 Green Building Market Barometer expect to incorporate at least some Green features in their next construction project. The potential to reduce energy and operating expenses are the most common drivers for building Green, although many companies are also focused on a broader set of benefits such as increased health and well-being of occupants and the positive impact on brand and corporate reputation. Yet, concerns persist over perceived higher construction costs and the length of the payback period. In addition, respondents continue to look closely at the cost and perceived difficulty of LEED certification.
These are some of the key findings from The Turner Construction Company 2010 Green Building Market Barometer, which is the fifth assessment since 2004 of perceptions about sustainable construction. The 2010 survey gathered the views on Green buildings of 681 executives from a broad range of organizations involved with real estate, including real estate owners, developers and corporate space users, as well as architectural, engineering and construction firms.
The survey polled the participants on the likelihood of undertaking construction or renovation projects; the degree to which companies incorporate Green building features; how companies decide whether to incorporate Green features; and the role of the LEED Green Building Rating system. In addition, for the first time, the survey asked about the extent of commitment to sustainable practices, in general, across organizations.
Key Findings:
Many Companies Expect to Undertake Construction or Renovation Projects
- Among real estate owners, developers, and corporate owner-occupants, 46% of executives said it was extremely or very likely that they would undertake new construction over the next 12 months, while 58% anticipated undertaking a renovation project.
Most Anticipate Incorporating Green Features
- Almost 90% of those executives said it was extremely or very likely that they would incorporate energy efficiency improvements in their new construction or renovation project, while roughly 60% expected to incorporate improvements to water efficiency, indoor environmental quality, and Green materials.
Financial Considerations Most important
- The factors most often rated as extremely or very important when companies decide whether to incorporate Green features were energy efficiency (88%) and ongoing operations and maintenance costs (86%).
- Many companies also considered non-financial factors to be extremely or very important in their decisions to incorporate Green features such as indoor air quality (72%), health and well-being of occupants (72%), and the impact on brand/reputation (67%).
- A payback period of longer than five years for Green features was considered acceptable by 45% % of executives.
Long Payback Period and Higher Construction Costs Pose Obstacles
- Despite the fact that almost half the executives were willing to accept a payback period of longer than five years, roughly two thirds of executives considered the perceived length of the payback period to be an extremely or very significant obstacle to incorporating Green features.
- Roughly two thirds of executives also considered higher construction costs to be an important obstacle to the development of additional Green buildings.
- Half of the executives believed that Green buildings have higher operating and maintenance costs, which they identified as another extremely or very significant obstacle to Green construction.
Views of LEED Certification
- Fifty-three percent of the executives thought it was extremely or very likely that their companies would seek LEED certification if constructing a Green building.
- Executives from real estate owners and corporations with portfolios of one million square feet or more were more likely to seek LEED certification, with 64% saying it was extremely or very likely.
Broad Commitment to Sustainable Practices
- Ninety percent of executives said their companies were at least somewhat committed to following environmentally sustainable practices in areas beyond their real estate portfolios, including 56% of executives who said they were extremely or very committed.
- The reasons most often cited as extremely or very important for companies to commit to following sustainable practices were two financial factors—cost savings (64%) and customer requirements (59%)—and two non-financial factors—impact on brand/reputation (64%) and the belief that “it’s the right thing to do” (63%).
Almost all executives continue to consider incorporating Green features when they undertake a construction or renovation project. Energy efficiency measures were the features that executives would most frequently incorporate in their projects. Investments in improving energy efficiency in their buildings result in substantial savings through lower energy costs and reduced operations and maintenance costs. In addition, most executives would also include Green building features to improve water efficiency and indoor air quality and would employ the use of green materials in their projects. These Green building features provide a wide array of additional benefits that include more satisfied employees, improved health and well-being of occupants, and the positive impact on a company’s corporate brand and reputation.
Despite Economic Conditions, Many Owners Planning to Build
Turner’s 2010 Green Building Survey was conducted in an environment of continuing weakness in the economy, following the financial crisis and economic downturn that began in 2008. Despite these market conditions, when asked about their likelihood to undertake new construction or renovation projects over the next 12 months, many executives who worked for real estate owners, developers, or corporate owner-occupants indicated that they expected to do so. Among these executives, 46% thought it was extremely or very likely that their company would undertake new construction over the coming year, while 58% thought it was likely they would undertake a renovation project. Real estate owners and corporate owner-occupants with real estate portfolios of one million square feet or more were even more likely to anticipate undertaking projects over the next 12 months, with 52% saying they were extremely or very likely to undertake new construction and 73% saying the same about renovation projects.
Related Stories
Architects | Mar 8, 2024
98 architects elevated to AIA's College of Fellows in 2024
The American Institute of Architects (AIA) is elevating 96 member-architects and 2 non-member-architects to its College of Fellows, an honor awarded to architects who have made significant contributions to the profession. The fellowship program was developed to elevate architects who have achieved a standard of excellence in the profession and made a significant contribution to architecture and society on a national level.
Sports and Recreational Facilities | Mar 7, 2024
Bjarke Ingels’ design for the Oakland A’s new Las Vegas ballpark resembles ‘a spherical armadillo’
Designed by Bjarke Ingels Group (BIG) in collaboration with HNTB, the new ballpark for the Oakland Athletics Major League Baseball team will be located on the Las Vegas Strip and offer panoramic views of the city skyline. The 33,000-capacity covered, climate-controlled stadium will sit on nine acres on Las Vegas Boulevard.
Adaptive Reuse | Mar 7, 2024
3 key considerations when converting a warehouse to a laboratory
Does your warehouse facility fit the profile for a successful laboratory conversion that can demand higher rents and lower vacancy rates? Here are three important considerations to factor before proceeding.
Shopping Centers | Mar 7, 2024
How shopping centers can foster strong community connections
In today's retail landscape, shopping centers are evolving beyond mere shopping destinations to become vibrant hubs of community life. Here are three strategies from Nadel Architecture + Planning for creating strong local connections.
Market Data | Mar 6, 2024
Nonresidential construction spending slips 0.4% in January
National nonresidential construction spending decreased 0.4% in January, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.190 trillion.
MFPRO+ Special Reports | Mar 6, 2024
Top 10 trends in senior living facilities for 2024
The 65-and-over population is growing faster than any other age group. Architects, engineers, and contractors are coming up with creative senior housing solutions to better serve this burgeoning cohort.
Architects | Mar 5, 2024
Riken Yamamoto wins 2024 Pritzker Architecture Prize
The Pritzker Architecture Prize announces Riken Yamamoto, of Yokohama, Japan, as the 2024 Laureate of the Pritzker Architecture Prize, the award that is regarded internationally as architecture’s highest honor.
Office Buildings | Mar 5, 2024
Former McDonald’s headquarters transformed into modern office building for Ace Hardware
In Oak Brook, Ill., about 15 miles west of downtown Chicago, McDonald’s former corporate headquarters has been transformed into a modern office building for its new tenant, Ace Hardware. Now for the first time, Ace Hardware can bring 1,700 employees from three facilities under one roof.
Green | Mar 5, 2024
New York City’s Green Economy Action Plan aims for building decarbonization
New York City’s recently revealed Green Economy Action Plan includes the goals of the decarbonization of buildings and developing a renewable energy system. The ambitious plan includes enabling low-carbon alternatives in the transportation sector and boosting green industries, aiming to create more than 12,000 green economy apprenticeships by 2040.
Lighting | Mar 4, 2024
Illuminating your path to energy efficiency
Design Collaborative's Kelsey Rowe, PE, CLD, shares some tools, resources, and next steps to guide you through the process of lighting design.