Geoexchange in Commercial Buildings – An Owners Perspective

Phillip Saieg, LEED AP O+MDirector of Sustainable Building

Agenda:

• Top reasons owner’s choose Geoexchange systems• The Market Trends for Green Buildings• Why Energy Efficiency and Green Matters to an Owner• Who makes what decisions in commercial buildings

Top Reasons owners choose Geoexchange

1. Low maintenance (total cost of ownership)

2. Long system life

3. Hedge against rising and volatile energy prices.

4. Geo is the best / lowest impact system for building owners wishing to be sustainable

5. Depending on the application Geoexchange is interesting to building owners because it can balance both heating and cooling loads.

However… Bottom line if an owner is just fixated on lowest first cost it is unlikely they will choose Geoexchange

• “As green buildings become more common, conventional buildings will rapidly lose value and become obsolete

- Charles Lockwood, Harvard Business Journal (2006)

• “Green will be measured by the business community, regulators, savvy consumers…stay on top of green or eat everyone’s dust. There will be differentiation over the long run, adapt or get crushed.”

- Urban Land Institute, Emerging Trends (2008)

Top 5 reasons business owners go green

1. Competitive differentiator

2. Mitigate risk

3. Attract tenants

4. Cost-effective

5. Increase rental rates

Top 5 business reasons tenants choose green

1. Happier employees and occupants

2. Public relations and community benefit

3. Lower operating costs

4. Immediate and measurable results

5. Save energy

WWW.SUSTAINABLECOLORADO.ORG

Building Address Square Feet Price Avg. $/SF

1428 15th St 11,360 $2,625,000 $231.07

1750 15th St 16,402 $3,650,000 $222.53

1800 15th St, Unit 106 1,933 $285,000 $147.44

1127 Auraria Pky, Unit 303 1,874 $435,000 $232.12

1940 Blake St 18,750 $235,000 $12.53

2300-2340 Blake St 43,750 $8,500,000 $194.29

2401 Larimer St 6,135 $1,200,000 $195.60

1444 Market St 7,267 $1,425,000 $196.09

1435 Wazee St, Unit 102 583 $440,600 $755.75

1425 Wewatta St 25,000 $3,500,000 $140.00

1610 Wynkoop St 29,202 $5,300,000 $181.49

Average: 14,751 $2,508,691 $228.08

Conventional Buildings sold in LoDo 2010-2012 CoStar data

Building Address Square Feet Price Avg. $/SF Value from Green*% of Total

Value

1755 Blake St 112,928 $40,600,000 $359.52 $4,636,823.68 11.42%

1645-1675 Larimer St 118,262 $17,500,000 $147.98 $4,855,837.72 27.75%

1800 Larimer St 495,518 $213,223,000 $430.30 $20,345,969.08 9.54%

1513-1530 Wynkoop St 306,791 $118,000,000 $384.63 $12,596,838.46 10.68%

1899 Wynkoop St 165,727 $52,700,000 $317.99 $6,804,750.62 12.91%

Average: 239,845 $88,404,600 $328.08 $9,848,043.91 11.14%

*Calculated as: $41.06 x building square feet      

      $/SF    

Difference in $/sf between green and conventional $100.00    

Percent difference     43.84%    

Average conventional building sale price $228.08    

Value of 18% premium on conventional sale price $41.06    

Green Buildings sold in LoDo 2010-2012, including estimates of the potential value from green of the sale price and that percent of the total value

“Energy upgrades are the new granite counter tops.”

Energy Efficiency as Investment

Non Energy Benefits

Non Energy Benefits

Thank You

Phillip Saieg LEED AP O+MAlliance Center Director

303.572.1536

All are welcome to tour the Alliance Center