Turner Construction Company, the leading general builder in the United States, today announced the results of a new Market Barometer survey that focused on environmentally-sustainable, or “Green,” building, and on sustainable practices in general. Key findings revealed that companies remain committed to constructing Green buildings, but fewer executives said their companies were likely to seek LEED certification when constructing a Green building, citing the cost and difficulty of the LEED certification process.
Brightening outlook for construction projects
Among real estate owners, developers, and corporate owner-occupants, 64% said they expect to undertake new construction projects over the next 12 months (up from 46% in the 2010 survey), and 71% said they expect to undertake renovation projects over the same period (up from 58% in the 2010 survey).
Widespread commitment to sustainable practices
Eighty-four percent of respondents said their companies were committed to environmentally-sustainable practices. Of that percentage, 56% of executives said their companies were extremely or very committed to following environmentally-sustainable practices in their operations, while an additional 33% said they were somewhat committed. In addition to citing financial reasons for this commitment, executives were most likely to cite broader considerations as extremely or very important including belief that it’s the ‘right thing to do,’ (68%), impact on brand/reputation (67%), and customer requirements (61%), along with cost savings (66%).
Reducing energy costs and operating expenses are the key drivers to green construction
Executives were most likely to cite financial factors as being important to their companies’ decisions on whether to incorporate Green features in a construction project. Respondents indicated that energy efficiency (84%) and ongoing operations and maintenance costs (84%) were extremely or very important to their decisions. However, more than two-thirds of executives also said that non-financial factors were extremely or very important including indoor air quality (74%), health and well-being of occupants (74%), and satisfaction of employees/occupants (69%). However, only 37% of executives said it was extremely or very important to their companies to minimize the carbon footprint of their buildings. This suggests that when environmental factors influence the decision to incorporate Green features, these are typically improvements to the indoor environment and its impact on the health and wellbeing of occupants and on the productivity of employees, rather than broader concerns about global environmental impacts. Respondents also indicated that impact on brand/reputation (67%) and employee productivity (67%) were important factors.
A large majority of executives said their companies would incorporate Green features if constructing or renovating a building. Eighty-one percent of executives said their companies would be extremely or very likely to invest in energy efficiency improvements if they were undertaking a construction project, while more than half said they would invest in improved indoor environmental quality (63%), improved water efficiency (57%), and Green materials (53%).
“Energy efficiency figures prominently in the decision-making process of green building primarily because of its large economic impact. Water efficiency in Green construction was seen as less important. This is in spite of a growing awareness that water is a finite resource, both in its operational use and its role in the production of goods and materials. While the direct economic impact of water efficiency is less than the savings on energy, its environmental impact is quite significant,” said Michael Deane, Vice President and Chief Sustainability Officer at Turner Construction.
Fewer companies plan to seek LEED certification
Although the vast majority of companies remain committed to Green buildings, the percentage of executives who thought it was extremely or very likely that their company would seek LEED certification if they constructed a Green building was only 48%, down from 53% in the 2010 survey and 61% in the 2008 survey. Among executives who said their companies were not likely to seek LEED certification, the most important reasons cited were the cost of the certification process (82%), staff time required (79%), time required for the process (75%), and the overall perceived difficulty of the process (74%). It is apparent that in the last four years many companies seem to have become more knowledgeable about the means and methods of designing and constructing Green buildings and are less reliant on LEED as a checklist or a scorecard, as indicated by 52% of executives saying that they prefer to rely on their company’s internal building standards. At the same time, 41% of executives thought it was at least somewhat likely that their companies would consider seeking certification under a rating system other than LEED if they constructed a Green building. Of those executives who indicated they would use another system, 63% said they would be extremely or very likely to consider seeking certification under ENERGY STAR, which again highlights the importance of energy efficiency. It should be noted that some owners may elect to certify under more than one rating system.
“We’ve seen from our own work and the continuing growth of the green building market that in spite of this reduction in enthusiasm for LEED certification, respondents are still building green,” said Deane. “While some respondents are relying on their own standards or are considering another rating system, LEED certification remains the best third party verification of achievement that is recognized by consumers and that can be used to market and promote a property.”
Concerns persist about construction costs and the length of the payback period
When asked what length of payback period would be acceptable when considering Green features, 44% of executives said they would accept five years and almost 80% of executives said they would accept a payback period of five years or longer. Despite the acceptance by most executives of an extended payback period, 61% of executives still felt that the length of the payback period was an extremely or very significant obstacle to the construction of Green buildings while 62% cited higher construction costs. +
Related Stories
Architects | Jun 6, 2023
Taking storytelling to a new level in building design, with Gensler's Bob Weis and Andy Cohen
Bob Weis, formerly the head of Disney Imagineering, was recently hired by Gensler as its Global Immersive Experience Design Leader. He joins the firm's co-CEO Andy Cohen to discuss how Gensler will focus on storytelling to connect people to its projects.
Codes and Standards | Jun 6, 2023
California’s new power grid modernization plan furthers ambitious climate goals
California’s new $7.3 billion grid modernization plan is a crucial step in furthering its ambitious climate goals. The board of governors for the California Independent System Operator (CAISO), the state’s grid operator, recently approved a strategy to build thousands of miles of new high-voltage transmission lines.
Mixed-Use | Jun 6, 2023
Public-private partnerships crucial to central business district revitalization
Central Business Districts are under pressure to keep themselves relevant as they face competition from new, vibrant mixed-use neighborhoods emerging across the world’s largest cities.
Multifamily Housing | Jun 6, 2023
Minnesota expected to adopt building code that would cut energy use by 80%
Minnesota Gov. Tim Walz is expected to soon sign a bill that would change the state’s commercial building code so that new structures would use 80% less energy when compared to a 2004 baseline standard. The legislation aims for full implementation of the new code by 2036.
Healthcare Facilities | Jun 5, 2023
Modernizing mental health care in emergency departments: Improving patient outcomes
In today’s mental health crisis, there is a widespread shortage of beds to handle certain populations. Patients may languish in the ED for hours or days before they can be linked to an appropriate inpatient program.
Student Housing | Jun 5, 2023
The power of student engagement: How on-campus student housing can increase enrollment
Studies have confirmed that students are more likely to graduate when they live on campus, particularly when the on-campus experience encourages student learning and engagement, writes Design Collaborative's Nathan Woods, AIA.
Engineers | Jun 5, 2023
How to properly assess structural wind damage
Properly assessing wind damage can identify vulnerabilities in a building's design or construction, which could lead to future damage or loss, writes Matt Wagner, SE, Principal and Managing Director with Walter P Moore.
Cladding and Facade Systems | Jun 5, 2023
27 important questions about façade leakage
Walter P Moore’s Darek Brandt discusses the key questions building owners and property managers should be asking to determine the health of their building's façade.
Retail Centers | Jun 2, 2023
David Adjaye-designed mass timber structure will be a business incubator for D.C.-area entrepreneurs
Construction was recently completed on The Retail Village at Sycamore & Oak, a 22,000-sf building that will serve as a business incubator for entrepreneurs, including emerging black businesses, in Washington, D.C. The facility, designed by Sir David Adjaye, the architect of the National Museum of African American History and Culture, is expected to attract retail and food concepts that originated in the community.
Mixed-Use | Jun 1, 2023
The Moore Building, a 16-story office and retail development, opens in Nashville’s Music Row district
Named after Elvis Presley’s onetime guitarist, The Moore Building, a 16-story office building with ground-floor retail space, has opened in Nashville’s Music Row district. Developed by Portman and Creed Investment Company and designed by Gresham Smith, The Moore Building offers 236,000 sf of office space and 8,500 sf of ground-floor retail.
