Ecology on a budget

Existing office buildings actually do have the opportunity to lower their operating costs and attract more eco-conscious tenants. Such changes can be carried out in stages and without a green certificate

Mladen Petrov

It is never too late to change. The Getty Center, the famous art museum in Los Angeles designed by renowned American architect Richard Meier (turn to page 50 to read our interview with this architectural icon), was opened in 1997. Its rich programme of exhibitions and events has always generated a great deal of media copy. However, in 2005 it was the real estate press that was turning its lights onto the museum. This is when it became the first existing building in America to obtain a LEED ecological certificate. Three years later the museum gained a more advanced, silver certificate, as all the architect's efforts to make people focus on sustainable development finally bore fruit.

Shortcuts known to all
Developers are becoming more and more familiar with the ecological certification systems for new buildings, such as LEED or BREEAM. As a result, news about an application for a certificate confirming the eco-friendliness of a newly-built office facility is hardly likely to raise an eyebrow anymore. But adopting an ecological approach to office development is not just the flavour of the season. According to a study carried out by Pike Research, the value of the environmental certification market for buildings is to grow by as much as 780 pct by 2020. In 2010 app. 600 mln sqm of space in the world could boast a green certificate and the number is expected to grow to 5.3 bln sqm in nine years.
Despite appearances to the contrary, green certification is not the exclusive preserve of new construction projects. It is estimated that app. 60 pct of certified areas are located in already existing buildings that have been modernised in order to obtain the certificate. But could there be other reasons for applying for a certificate, apart from an apparent concern for the environment? There are, in fact, a number of financial benefits: between 25 and 50 pct lower energy consumption, a 40 pct reduction in water consumption, a 70 pct reduction in waste and app. 35 pct lower greenhouse gas emissions. Ultimately, all this makes the upkeep of a building much cheaper - and it is the prospect of such savings that should be music to tenants' ears.

Owner's toolkit
Not all the owners of older buildings can afford extensive modernisation work, but this does not mean that they cannot make improvements, even if they are not applying for one of the certificates. How? Owners of older buildings probably accept the need for energy-saving lighting. A similar case exists with recycling or providing bicycle parks. However, outside professionals will have to be brought in for any larger-scale work.
For a few years now every developed building, as well as all existing buildings that are subject to lease or sale, have had to hold a green certificate. "This document may be the starting point for considering whether an existing property may be subject to further certification, such as LEED-EB or BREEAM In-Use, since facilities with branded certificates enjoy greater interest from potential tenants. When preparing the work needed on a building and an investment budget for the next few years, one could ?green' a building in a step-by-step manner by following the recommendations of  an energy audit. In this case, if the certification option is rejected, e.g. because of a lack of financial resources for the complex modernisation work needed, one could still plan and carry out the some of the modernisation work in line with the Green Building concept," claims Leszek Sybura, one of Cushman & Wakefield's property managers. Michał Skaliński, the director of the consultancy's asset management department, agrees: "At this point, mandatory energy certificates for properties for lease or sale do not solve any problems. The document shows how much energy a building uses, but it does not contribute to any significant changes," he explains.

Cost inspection
In reality, companies intent on applying for such certificates concentrate on determining their building's demand for non-renewable primary energy. They rarely focus on the modernisation work required to reduce energy consumption, despite this being an obligatory condition of each certificate. Costs related to heating constitute app. 7-10 pct of a building's running costs, while water consumption and wastewater disposal account for another 1-2 pct. It should be borne in mind that up to 30 pct of the operating costs of a building are related to the consumption of energy, with 70 pct of these costs resulting from appliances such as lifts, air handling units, chilled water units, humidifiers, pumps and lighting. "The owners of existing buildings should concentrate on this 70 pct," insists Michał Skaliński.
A thorough modernisation of a 1990s building with an area of 10,000 sqm could cost its owner app. PLN 1.5 mln, but this is an investment that should pay for itself within ten years. However, such changes can be implemented in a number of stages. "We can take a look at the biggest energy absorbers, starting with the lifts. Existing commercial properties often have hydraulic or electric lifts with reducer drives. Complex modernisation work on a lift with a reducer drive can cost as much as PLN 100,000; whereas a new one, without an engine room and with an energy-saving non-reducer drive that does not require the use of oil, costs app. PLN 20,000 and uses up to 30 pct less electricity. So we try to convince owners that in the long run it is worth paying more," says Leszek Sybura.

It's good to talk
The range of available solutions is wide, but building owners and tenants must co-operate to implement them successfully. "Holding interviews with our tenants was a huge challenge. In the Warsaw Rondo 1 office building we have over 70 companies and institutions employing app. 5,500 people. Carrying out a relatively detailed survey of, for example, the means of transport they use to get to work, was a real challenge. However, it was possible to interview app. 90 people. Without their involvement or understanding their rôles, it would have never been possible to obtain the certificate," emphasises Karol Bartos, vice president of asset development management at MGPA. The 40-storey Rondo 1, which was completed in 2006 and now belongs to MGPA Europe Fund II, recently obtained a LEED Gold ecological certificate in the ?existing buildings' category. The certificate was applied for in October 2009, after which an audit took place last year and in February this year the certificate was finally granted. The number of bulbs containing mercury compounds was reduced and biodegradable cleaning products were introduced. In addition, 10 pct of the electricity consumed in the office building now comes from renewable sources (wind power from an RWE wind farm).
Hans van de Sanden, an accredited BREEAM assessor at engineering consultants Grontmij, points out that thanks to such certificates as BREEAM In-Use, building owners can decide what future work is needed themselves. "While answering 150 detailed questions, you can decide yourself what needs to be changed in a building," claims Mr van de Sanden. In the CEE region, the firm has now worked on the certification of seven existing buildings. "It's no surprise a 10-15 year old building needs a revamp. It provides a good opportunity to consider more serious changes and avoid a lot of energy waste at the same time. But, remember that when acting on your own initiative you may end up improvising," Mr van de Sanden warns.

Turn off the lights!
Modern technologies help to reduce energy consumption. They can help facility managers through the installation of more efficient systems, such as time-setting programmes for HVAC appliances (e.g. chilled water units and air handling units), twilight sensors for external lighting, temperature controllers and the integration of the control system with HVAC installations. Water meters are worth installing to encourage water saving, such as for the water used for watering plants. Additional savings can be obtained as a result of installing photocell taps with aerators, which results in a reduction in water consumption. "We have changed lighting to LED where possible, and this works very well in the lifts in the Rondo 1 office building. However, it is much harder to use in large spaces due to the limited power and spot lighting. We are wondering whether and how they could be used in the malls in our portfolio, such as Pogoria in Dąbrowa Grónicza and Karolinka in Opole," explains Karol Bartos of MGPA. The investor, which has now taken over these shopping centres built in 2008, is currently considering implementing similar solutions to those applied in Rondo 1 in the malls. The crowning achievement of this will be the obtaining of the certificate. So far not one shopping centre in Poland has such a certificate. It seems that the retail market has been the slowest to adapt to the shift towards green buildings. "Sometimes changes are really easy to implement, for example the use of tap aerators has enabled us to lower water consumption in Rondo 1 by 30 pct," explains Karol Bartos, who goes on to add that big changes in water consumption can be achieved in the café/restaurant zones of shopping centres. More changes are to come, but the investor is planning to draw up a list of required solutions this year, allowing the certification process for Pogoria and Karolinka to start as early as 2012.
Interestingly, facility managers have to keep an eye on the latest trends on the automotive industry. Michał Skaliński reveals that he is increasingly considering provide facilities for electric car charging. In addition, the installation of automatically opening roller blinds or doors at the entrances to car parks would reduce heat loss. "The operating costs of older and new buildings are two separate issues. It is worth remembering that a building after being modernised will not work in the same way as a modern commercial facility that has just been finished. Nevertheless, what counts most is the fact that we have lowered energy consumption and reduced operating costs and have contributed to the protection of the environment as a result," concludes Michał Skaliński.