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
Government Buildings | Aug 7, 2023
Nearly $1 billion earmarked for energy efficiency upgrades to federal buildings
The U.S. General Services Administration (GSA) recently announced plans to use $975 million in Inflation Reduction Act funding for energy efficiency and clean energy upgrades to federal buildings across the country. The investment will impact about 40 million sf, or about 20% of GSA’s federal buildings portfolio.
MFPRO+ New Projects | Aug 4, 2023
Nashville gets 'first-of-its-kind' residential tower
Global architecture firm Goettsch Partners announces the completion of Alcove, a new 356-unit residential tower in Nashville, Tenn., developed by Giarratana LLC.
Industrial Facilities | Aug 3, 2023
The state of battery manufacturing in the era of EV
One of the most significant changes seen in today’s battery plant is the full manufacturing process—from raw materials to the fully operational battery.
Government Buildings | Aug 2, 2023
A historic courthouse in Charlotte is updated and expanded by Robert A.M. Stern Architects
Robert A.M. Stern Architects’ design retains the original building’s look and presence.
Hotel Facilities | Aug 2, 2023
Top 5 markets for hotel construction
According to the United States Construction Pipeline Trend Report by Lodging Econometrics (LE) for Q2 2023, the five markets with the largest hotel construction pipelines are Dallas with a record-high 184 projects/21,501 rooms, Atlanta with 141 projects/17,993 rooms, Phoenix with 119 projects/16,107 rooms, Nashville with 116 projects/15,346 rooms, and Los Angeles with 112 projects/17,797 rooms.
Architects | Aug 1, 2023
Ware Malcomb announces hire of Jason Golub as Regional Director
In this role, Golub is responsible for the overall leadership and continued growth of the office.
Market Data | Aug 1, 2023
Nonresidential construction spending increases slightly in June
National nonresidential construction spending increased 0.1% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. Spending is up 18% over the past 12 months. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.07 trillion in June.
Healthcare Facilities | Aug 1, 2023
Top 10 healthcare design projects for 2023
The HKS-designed Allegheny Health Network Wexford (Pa.) Hospital and Flad Architects' Sarasota Memorial Hospital - Venice (Fla.) highlight 10 projects to win 2023 Healthcare Design Awards from the American Institute of Architects Academy of Architecture for Health.
Office Buildings | Aug 1, 2023
Creating a nurturing environment: The value of a mother’s room in the workplace
Since becoming an architect, Rebecca Martin of Design Collaborative has drawn a mother’s room into numerous projects. But it wasn't until she became a mom that she fully appreciated their importance in the workspace.
Digital Twin | Jul 31, 2023
Creating the foundation for a Digital Twin
Aligning the BIM model with the owner’s asset management system is the crucial first step in creating a Digital Twin. By following these guidelines, organizations can harness the power of Digital Twins to optimize facility management, maintenance planning, and decision-making throughout the building’s lifecycle.