Text: Gaye de Villiers.
Source: This article is taken from the August 2011 issue of Real Estate Investor.
In 2007 the independent organization called the Green Building Council of South Africa (GBCSA), under the umbrella of the World Building Council was established. Their intention was to release the rating system called the Green Star SA Rating Tool.
The fundamental purpose of the GBCSA is to independently assess the level of environmental design attributes of a building at the design stage and again at the built stage, once the development is completed.
Who benefits from green
Tenants
Improved IEQ = increased productivity.
Triple bottom line.
Lower operating costs = lower gross rental.
Developers
Enhanced lease potential.
Future proof the building.
Reduces utility connection fees.
Triple bottom line.
Increased Capital value of building.
Environmental responsibility.
Rising electricity tariffs coupled with increasing pressure locally and globally to reduce carbon emissions and conserve energy, are resulting in increasing interest among businesses regarding practical ways to implement energy saving measures in commercial buildings. There is a broad range of energy savings devices or interventions which can be implemented, which are categorised according to low to medium cost.
There are a broad range of energy saving interventions which can be implemented
These incorporate structural, mechanical and electrical savings – which can achieve savings up to 25 percent or more but generally seek to achieve on average about 11 percent, as well as human or managerial interventions such as behavioural changes – which can see savings of up to five percent.
Building Owners
If the business is an owner-occupier of an entire building then energy saving measures can easily be implemented. If the business is a tenant then in cases where the tenant occupies the entire building the business owner is in a better position to determine and manage the usage patterns and consumptions of the business operations within the building than if the tenant only occupies a portion of the building.
The tenant can either retro-fit the premises to improve on or comply with minimum savings criteria set out by supply authorities, or insist as part of the lease negotiation that the landlord implements these savings prior to occupation. Either way, anything is possible as more and more national and international tenants are insisting on energy efficient or ‘green’ buildings to meet international carbon footprint/emission targets set out according to global standards – or individual corporate strategies.
Partial occupation
Tenants occupying partial or limited spaces in buildings have fewer opportunities to make changes or impact on usage or consumptions in general. While such interventions are usually initiated and implemented by the landlord on their behalf, the tenant can make improvements to their installations during the initial tenant fit-out process.
Rolling blackouts experienced in recent years some landlords have invested in back-up generators in order to provide power to all or limited installations and systems within the building during power outages. In practice, running power supplies off generators is very costly to the users and negotiations with landlords and tenants are required to determine to what extent these generators need to supply power.
If in many instances tenants cannot afford downtimes or the nature of their business requires security of power supply for various purposes, then these requirements must be either met by the landlord’s generator supply or by installing an additional generator linked directly to the tenant’s premises and systems. The latter would then be a direct cost to the tenant for installation, operation and maintenance.
Green Building development is a team effort that requires everyone to be on the same page. The net extra cost is relative to the base build cost. The bigger the building GLA the lower the green cost/m2. Experience shows a cost premium between 2% to 6% above base build development cost is to be expected. The belief is that with increasing energy cost, non-green buildings are becoming functionally obsolete.
Fly me to the moon
The sky is the limit when it comes to implementing green energy methods, but don’t rush into implementing new energy saving methods until you have done your homework. Read up about the ‘Draft Energy Efficiency Strategy’ to be implemented in South Africa. Research energy efficiency partners that are not linked to specific technologies and/or brands, who can give you an objective holistic analysis and recommendation on which technology or approach to implement to best suit your needs.
Begin with an energy audit to determine the baseline of current energy demand and then ensure that the solutions proposed can make substantial and quantifiable improvements before making final commitments.
Resources
Zenprop
www.zenprop.co.za
JHI Properties
www.jhi.co.za
Zenprop, Umhlanga Ridge, KwaZulu Natal 7000m2 A+ Grade Office – 4 Star Accredited
Comments on this: editorial@reimag.co.za
Case study
What does Green cost?
- How long is a piece of string?
- Decide a base build cost – will the building be an A Grade; B Grade, C Grade?
- All green buildings are unique
- What expenditure, over the base build cost is required to obtain the green points?
- Get the tenants to buy in and share in the costs as well as in the upside! Green initiatives benefit all Perform sun angle analysis – understand where the heat gain is
- Look at orientation, shading to heat dominant facades, double glazing, reduce glazing where possible, south facing sky
- Don’t simply chase the green points, if the design is right the points will come
Green Initiatives
- Motion detection to lighting and high efficient light fittings
- Energy efficient lifts with destination control and solar heated water
- Grey water re-cycling – basins and showers; rain water harvesting; dual flush toilets; land irrigation.
Analysis
- The bigger the GLA the lower the green cost/m2
- Higher base build offer = lower eeconomic green cost
- The big spends = IEQ;
- Energy; Water; Management • Energy/ Water = tangible benefit
- IEQ = improvement in staff productivity How do you put a number to this – time will tell
- Water-cooled chillers, reverse cycle heating, pre-cool fresh air, occupancy sensing, increased air change rates
Lessons learnt
- Have a development brief from day 1
- Employ a green design consultant It needs to be a team effort
- Employ professionals only
- Check the design every step of the way
- Value engineer the key elements
- Spend the capital outlay wisely
- Make green work for you
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