Maximizing Triple Bottom Line Benefits of Green Buildings

1. SIOR Goes Green Triple Bottom Line Benefits of Green Buildings www.gradypridgen.com Not Just Another Pretty Place

2. Triple Green Building Bottom Line Benefits ENVIRONMENT Reduced Environmental Impact. Peak Efficiency. Improved Capitalization Rates. Increased Marketability. Higher Lease Rates. Improved Productivity. Reduced Absenteeism. PEOPLE ECONOMICS www.gradypridgen.com

3. Green Buildings are: • Environmentally Responsible • Smart Site Selection • Sustainable Building Components • Profitable • Reduces Operating Expenses • Reduces Energy usage and cost • Reduces Water & Sewer usage and cost • Reduces Waste Disposal usage and cost • Healthy Places to Live and Work • Enhances Profitability • Improves Productivity • Reduces Absenteeism www.gradypridgen.com

4. Successful Green Projects • Alcoa World Headquarters, Pittsburgh PA • Bank of America Headquarters, New York NY • Duracell Corporate Headquarters, Bethel CT • Reebok World Headquarters, Anton, MA • Toyota Motor Sales USA – South Campus, Torrance CA • Wal-Mart Supercenter, McKinney TX • San Jose Civic Center, San Jose CA • San Mateo County Crime Lab, San Mateo CA • Emery University Winship Cancer Institute, Atlanta GA • Pentagon Athletic Center, Arlington VA • The Dalles Middle School, Dalles OR • City of Seattle Police Support Facility, Seattle WA • Wells Fargo Financed two Green Buildings for $64 Million • Royal Caribbean Cruises, Springfield OR • Banner Bank Building, Boise ID www.gradypridgen.com

5. United States Building Impacts: 65% Waste Output 70% Electricity Consumption 30% Greenhouse Gas Emissions 12% Water Use www.gradypridgen.com

6. SCHOOLS HOSPITALS 20% BETTER TESTPERFORMANCE EARLIER DISCHARGE OFFICES 2-16% PRODUCTIVITYINCREASE Increased Productivity in Green Buildings • Schools: 20% Better Test Performance • Hospitals: Earlier Discharge • Retail: Increase in Sales per Square Foot • Factories: Increased Production • Offices: 2-16% Productivity Increase www.gradypridgen.com

7. Selection of team members knowledgeable of sustainable green practices is critical These Team members include: Commission Agents (VIP) General Contractors Architects Engineers, etc. www.gradypridgen.com

8. Smart Site Selection for Green Buildings • Smart Site Location: • Proximity to Existing Infrastructure • Protecting Environmental Resources • Proximity to Services, New Construction • Make Use of Passive Solar Heating/Cooling • Grayfield, Brownfield or Adaptive Reuse Site • Compact Development • Walkable: Connections to Surroundings • Transportation Oriented: Mass Transit Public Transportation • Mixed-use (recreation, employment, shopping and living) www.gradypridgen.com

9. Green Broker Building Checklist: • High efficiency building envelope • Efficient lighting & window specifications • Efficient HVAC specifications • Low flow bathroom fixtures • Efficient Roof Insulation • Efficient windows • Architect experienced with Green building technologies • Contractor experienced with Green building technologies • Current Recycling program • Building Orientation • Electrical Requirements (Watts / SF): 2 vs 5 www.gradypridgen.com

10. Green Broker Building Checklist: cont. • Construction Waste Management: Develop and implement a construction waste management plan to reduce the amount of material sent to the landfill. • Recycled Content Material: Use materials with recycled content. • Use Certified, Salvaged and Engineered Building Materials. • Use Water-Permeable Walkways and Parking Areas. • Reduce Heat-Island Effect for Roofing and Paving • Sustainable Property Management www.gradypridgen.com

11. Green Broker Building Checklist: cont. • Low / Zero Volatile Organic Compounds (VOC) Paints, Primers and Sealants • Formaldehyde-free Composite • Green label Certified Floor Covering • Exhaust Fans- Bathrooms & Kitchens • Proper Ventilation • HVAC Sizing • Water Heaters: Mold Prevention www.gradypridgen.com

12. Green Broker Building Checklist: cont. • Cold Water Pipe Insulation • Materials in Wet Areas • Basements and Concrete Slabs: Vapor Barrier • Water Drainage • Integrated Pest Management www.gradypridgen.com

13. Green Operations by the Occupants • Monitoring • Behavior • Lighting • Bathroom • Storage Areas (Sensors) • Stairwells (Sensors) • Unoccupied Areas (Sensors) • Water • Electrical • Computer and Office Equipment • Energy Star • Phantom Energy • Green Cleaning Products • Recycling www.gradypridgen.com

14. Average Savings of Green Buildings Average Savings of Green Buildings WASTE COST SAVINGS 50-90% WATER USE SAVINGS 30-50% CARBON SAVINGS 35% ENERGY SAVINGS 30% Source: Capital E www.gradypridgen.com

15. Green Building Owner Benefits INSURANCE VALUATION & BRAND APPRECIATION EMPLOYMENT REDUCED PUBLIC INFRASTRUCTURE COSTS EQUITY SECURITY SECURITY www.gradypridgen.com

16. Green Building Economic Benefits A $4 investment per square foot in building green nets a $58 benefit per square foot over 20 years $8.50 OPERATIONS & MAINTENANCE SAVINGS $1.20 EMISSIONS SAVINGS $5.80 ENERGY SAVINGS $46.00 EST. HEALTH & PRODUCTIVITY BENEFITS $0.50 WATER SAVINGS $4.00 PSF $62.00 PSF Total Benefits COST BENEFIT www.gradypridgen.com

17. Green Building Operational Benefits • Enhanced Productivity: • Reduced Absenteeism • Enhanced Recruitment • Improved Employee Morale • Average Productivity Gains • High-Performance Lighting Enhances Productivity by 6.7% • Individual Temperature Control • Enhances Productivity by 3.6% www.gradypridgen.com

18. Employees Perceive Value Working in Green Buildings • Overall Environmental Benefit • Reduced Energy Consumption • Lower Operating Costs • Health Benefit • Positive Marketing and Promotion • Increased Productivity www.gradypridgen.com

19. Green Building Community Benefits • Maximizes existing infrastructure • Reduces environmental impact • Reduces Sprawl • Reduces Air Pollution • Reduces Water pollution • Conserves Raw Materials • Reduces demand on Services: • Water, Sewer and Solid Waste • Increases tax base: schools, fire, police, etc. • Revitalizes communities www.gradypridgen.com

20. Green Building Cost vs Conventional • New buildings are easier and cheaper to make green • Existing building components • Shell building • High efficiency building envelop • Commercial Interiors • Multi tenant buildings require phasing as each lease expires www.gradypridgen.com

21. Federal Tax Deductions for Green Buildings: • A federal tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001.* • Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2008. *See The Energy Policy Act of 2005 www.gradypridgen.com

22. Green Building Challenges • First cost vs life cycle cost • Credibility of benefits • Changing habits www.gradypridgen.com

23. Green Building Financing and Insurance Benefits • The United Kingdom recently required all building as of 2007 to be green. • European investment community anticipates 15% higher rents in green building. • Existing buildings not easily converted to green experience a considerable reduction in value. • Higher cap rates for green building due to: • Mitigation for increasing utility costs • Healthier building equates to reduced liability (sick building) • Healthier buildings enhance marketability • Reduced reserves • Disaster preparedness www.gradypridgen.com

24. Why Go Green? • Improves the environment for our children • 1450% return for employers • Increased Productivity • Decreased absenteeism • Healthier employees • Increased marketability • Reduced Liability www.gradypridgen.com