“Green Apples and Apples” - Appraisal Institute · “Green Apples and Apples” ... 7...
Transcript of “Green Apples and Apples” - Appraisal Institute · “Green Apples and Apples” ... 7...
“Green Apples and Apples”Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, MRICS
And
Sandra K. Adomatis, SRA, LEED Green Assoc., NAR Green
“Are you comparing your “Green Apple” to red, golden, or rotten apples?"
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Learning Objectives
Identify a true “Green Apple”
01Select a true comparable
02List tools and resources that assist in the valuation of energy efficient and green buildings
03
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Identify a true “Green Apple”
5
What is the dividing line between a “Green Apple” and a “Red Apple?”
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Building Code RequirementsNon-Green Apple
Six Elements of Green Building
Site Compaction, drainage, slope, Exceeds Code-Builds to maximize site characteristics
Water Efficiency Low Flow plumbing fixtures Exceeds Code
Energy Efficiency Minimum Eff. Rating Exceeds Code Efficiency Rating – Hi Eff Mechanicals – Solar/Geo
Indoor Air Quality Max. Envelope Rating Exceeds Code
Materials Little requirements for materials in Code
Low VOC and Efficient materials priority
Operations and Maintenance
Little attention to O & M Requirements and education to minimize O & M
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Midwest U.S. Geothermal vs. Traditional HVAC
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What is behind the drywall?
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This tells what is behind the walls and compliments appraisal standard requirements!
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Sales Price Premiums Per Builder Survey
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Test of Reasonableness – Cost Over Code
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Majority say between 1% &
10%
Property to be appraised – 1,437 SF – 1-Car Attached Garage
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For Sale
Case Study
Green Certifications
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AI Residential Green & Energy Efficient Addendum – 820.05
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AI Residential Green & Energy Efficient Addendum – 820.05
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http://www.appraisalinstitute.org/assets/1/7/ResidentialGreenandEnergyEfficientAddendum.pdf
Sold 6 months ago -1,437 SF – 2-Car Garage
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Sold 3 months ago – 1,437 Sq. Ft. – 2-Car Garage
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Sales within a mile and all are code-built – none with Energy Upgrades or Certifications
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# Close Date Legal Subdivision NameSq Ft
HeatedCurrent
Price SP/SqFt Beds Baths Year Built Pool1 6/23/2017 PORT CHARLOTTE SUB 36 1,348 $170,650 $126.59 3 2 2017 None2 8/12/2016 PORT CHARLOTTE SUB 19 1,540 $171,150 $111.14 3 2 2016 None3 8/10/2016 PORT CHARLOTTE SUB 17 R 1,437 $174,900 $121.71 3 2 2016 None4 3/17/2017 PORT CHARLOTTE SUB 29 1,227 $178,900 $145.80 3 2 2017 None5 9/24/2016 PORT CHARLOTTE SUB 29 1,540 $178,150 $115.68 3 2 2016 None6 8/15/2016 PORT CHARLOTTE SUB 11 1,437 $181,900 $126.58 3 2 2016 None7 8/19/2016 PORT CHARLOTTE SUB 11 1,437 $182,900 $127.28 3 2 2016 None8 4/24/2017 PORT CHARLOTTE SUB 19 1,437 $186,900 $130.06 3 2 2017 None9 12/2/2016 PORT CHARLOTTE SUB 11 1,415 $187,000 $132.16 3 2 2016 None
10 9/24/2016 PORT CHARLOTTE SUB 11 1,540 $190,250 $123.54 3 2 2016 None11 6/5/2017 PORT CHARLOTTE SUB 26 1,437 $191,900 $133.54 3 2 2017 None12 5/26/2017 PORT CHARLOTTE SUB 26 1,437 $191,900 $133.54 3 2 2017 None13 4/18/2017 PORT CHARLOTTE SUB 11 1,540 $194,750 $126.46 3 2 2016 None14 4/21/2017 PORT CHARLOTTE SUB 19 1,546 $198,500 $128.40 3 2 2017 None15 1/18/2017 PORT CHARLOTTE SUB 19 1,437 $203,000 $141.27 3 2 2016 None16 1/30/2017 PORT CHARLOTTE SUB 17 1,437 $226,000 $157.27 3 2 2016 Yes
Mean 1,450 $188,047 $130.06Median 1,437 $186,950 $127.84
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Appraised value on the green house with 5 Certifications was $5,000 less than the lowest priced Code-Built Home within 1 mile because appraiser said the Green Home was lower quality than a code-built home.
Illinois Farm House built
in 1906Now Green
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Can you see Green here?
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http://newsroom.usgbc.org/us-green-building-council-releases-annual-top-10-states-for-leed-green-building-per-capita/
2017 Top 10 States for LEED Certified Buildings Per Capita
List
The Appraisal Institute Commercial Green Registry must be heavily populated in these states.
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https://www.buildingrating.org/graphic/us-commercial-building-policy-comparison-matrix
U.S. Commercial Building Energy Benchmarking and Transparency Policies
A Resource that might hint toward an “apples- to-apples” comparison.
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https://www.buildingrating.org/graphic/us-commercial-building-policy-comparison-matrix
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https://www.buildingrating.org/graphic/us-commercial-building-policy-comparison-matrix
What is a “cost-effective building?”• Is it the lowest first-cost structure that meets the
program?• Is it the design with the lowest operating and
maintenance costs?• Is it the building with the longest life span?• Is it the facility in which users are most productive?• Is it the building that offers the greatest return on
investment?
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Source: http://www.wbdg.org/design-objectives/cost-effective
Cost-Effective Building Design is…
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A building design is deemed to be cost-effective if it results in • benefits equal to those of alternative designs and• has a lower whole life cost, or total cost of ownership.
For example, the HVAC system alternative that satisfies the heating and cooling requirements of a building at the minimum whole life cost, is the cost-effective HVAC system of choice.
Source: http://www.wbdg.org/design-objectives/cost-effective
Cost-Effective Building Design is…
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Components of the whole life cost include
• Initial design and construction cost, • On-going operations and maintenance, • Parts replacement, • Disposal cost or salvage value, • The useful life of the system or building.
Source: http://www.wbdg.org/design-objectives/cost-effective
Commercial-Industrial Heating-Cooling Systems
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Heating, ventilating, and air-conditioning (HVAC systems) account for 39% of the energy used in commercial buildings in the United States. Consequently, almost any business or government agency has the potential to realize significant savings by improving its control of HVAC operations and improving the efficiency of the system it uses.
https://www.wbdg.org/resources/high-performance-hvac
Commercial-Industrial Heating-Cooling Systems
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• The use of high performance HVAC equipment can result in considerable energy, emissions, and cost savings (10%–40%).
• Whole building design coupled with an "extended comfort zone" can produce much greater savings (40%–70%).
• Extended comfort includes employing concepts such as providing warmer, but drier air using desiccant dehumidification in summer, or cooler air with warmer windows and warmer walls in winter.
https://www.wbdg.org/resources/high-performance-hvac
Commercial-Industrial Heating-Cooling Systems
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• In addition, high-performance HVAC can provide increased user thermal comfort, and contribute to improved indoor environmental quality (IEQ).
https://www.wbdg.org/resources/high-performance-hvac
Indoor Air Affects Health of Employees
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Influenza Virus Type A
Is 10 times more viable in dryer air.
The germs spread farther in dryer air.
Source: (www.welloinc.com/wp-content/uploads/2014/.../Our-Health-and-Indoor-Weather.pdf » Humidity Impacts Infection Spread and Susceptibility
Humidity Impacts Infection Spread and Susceptibility
Humidity Impacts Infection Spread and Susceptibility
Humidity Level % of Flu Virus Particles
Can Simulate how long after cough?
23% 70-77% 1 hour
43% 14% 15 minutes
“The virus just falls apart within 15 minutes when in high humidity levels.” said study researcher John Noti, of CDC.
Source: (https://www.livescience.com/27533-flu-transmission=humidity.html )
Case Study – Mixed Use- Office and Retail – Rosslyn, VA
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Commercial Case Study
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• 1525 Wilson Blvd, Rosslyn, VA• 12-Story Building (Mixture of Office and Retail
with three-level underground parking)• 313,337 Sq Ft Building – Mid-Class Building
before Retrofit• 100% Tenant Occupied• All Electric• Built 1987 – Deep Green Retrofit in 2010
Source: https://newbuildings.org/hubs/deep-energy-retrofits/#research
Energy Retrofits Included…
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• Replaced HVAC System• Replaced Lighting -Energy efficient lighting retrofit to
T8s, CFLs and LEDs• Engaged Tenants through education of energy features• Includes a monitoring system to gage performance• Result – 35% Energy Savings in Year 1 after the retrofit• Energy Savings was $250,000 Year 1
Source: https://newbuildings.org/hubs/deep-energy-retrofits/#research
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Energy Use Intensity Comparison
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An Energy Use Intensity (EUI) is the total energy (gas and electric) used in thousands (k) of British thermal units (Btu) divided by the square feet (sf) of the space –resulting in a commonly used metric of kBtu/sf.
Air Distribution & HVAC Compressor Findings
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HVAC: was estimated to impact 50-60% of the building’s energy use. During the retrofit, existing VAV boxes were found in the ceiling that were not connected, maintained or documented, resulting in entire zones of the building disconnected.
A comprehensive upgrade to the whole building VAV system, including the retrofit of 90% of compressors and sensors. The system framework is open source to allow expansion of additional capabilities to accommodate next-generation technology.
Indoor air quality was a major focus of the project and a key factor in tenant satisfaction. CO2 monitors were added to ensure adequate ventilation of occupied spaces and reduce ventilation rates when empty.
Source: https://newbuildings.org/hubs/deep-energy-retrofits/#research
Cost Of Improvements
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• $1,100,000 Energy Upgrades or $3.50/SF• Annual Energy Savings $283,000 at 7.5 Cents/kWh• $75,000 Savings in annual maintenance costs
$283,000+$75,000 Annual Savings = $358,000$1,100,000/$358,000 = 3.07 years to recoup
investment
Source: https://newbuildings.org/hubs/deep-energy-retrofits/#research
Comparable Selection for Wilson Blvd.
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• How easy will it be to comp this building?
• Is the EUI available on all sales?
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Need photograph of Similar non green Commercial Building
Select A True Comparable
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Exceeds Code
Meets Code
Are the code-built really comparables?
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Identifying a “Green” Comparable
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Feature Green Non Green
Insulation Continuous Insulation
Minimum Code
Envelope Tighter than Code Meets Code
Mechanicals High Efficiency Meets Code
Appliances High Efficiency Meets Code
Windows/Doors Double/Triple/Insulated
Meets Code
Materials Low VOC-Durable-Recyclable
Meets Code
Air Quality Improved –Mechanical Air Exchange
Meets Code
Smart Technology Maybe Not required
Energy Efficiency Exceeds Code Meets Code
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Market Reaction to Green
List tools and resources that assist in the valuation of energy efficient and green buildings
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A drone can inspect roofs
and solar photovoltaics
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SRA
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Drone Photography by Appraiser in Puerto Rico
Commercial Addendum is a resource - checklist
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RESNET’s Appraisal Portal Includes Confirmed Ratings Only
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Free-Ei Value – Ipad or Tablet Application
Solar Valuation
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https://www.appraisalinstitute.org/store/books-and-ebooks/environmental/
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Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, MRICS
E-mail: [email protected]
Sandra K. Adomatis, SRA, LEED Green Assoc., NAR Green
E-mail: [email protected]