Major developments on the green building front in 2008 hold the promise of even greater momentum in 2009. We take a year-end look at five general areas: the resilience of green building, the hot pursuit of energy efficiency and incentives, increased focus on the built environment, legal landscape and the path ahead.
Green Building Remains Buoyant
The resilience of green building through the economic turmoil of the past year was perhaps the greatest source of inspiration and relief to the industry. A raft of studies published in the fourth quarter reported that green building was on the upswing despite the down market.
Several studies affirmed the appeal of smart green buildings and their benefits. Among the more widely hailed was McGraw-Hill Construction's report in November saying that the potential for continued growth in the green building market is huge. The study projected a possible tripling in the value of eco-friendly construction starts to reach as much as $140 billion in the next five years.
Studies by the hospitality and restaurant industries released in Q4 also showed that eco-friendly built environments continued to hold their own despite tough times. The reports predicted that the green elements, in many cases coupled with perceived value, would persist as market differentiators in 2009 and beyond. Firms should jump on the opportunity to upgrade their environmental profiles now; those already pursuing green strategies are ahead of the game, should stick with their plans and expand them if possible, the studies suggested — advice that was echoed in reports across the green building industry.
More so than ever, the key for companies in the coming year is determining where true value lies — for the market as well as the business.
As Aaron Adelstein, the executive director of the Built Green Association of King and Snohomish Counties in Washington state, told an audience at West Coast Green: "It's important to know the difference between what can be merely a feature and what's a true benefit."
Although figures and reports on green building in the final quarter of the year could yet show a slowing of growth, green building proponents were generally heartened that the industry had not stalled.
Monitoring + Measuring = Money
For many firms, testing that equation proved to their advantage in 2008 as the pursuit of energy efficiency, cost savings and incentives ratcheted up while operating budgets tightened.
Increasingly businesses, institutions and public bodies looked for help in reducing their energy use and firms like Honeywell, Johnson Controls, Siemens, Site Controls, Telkonet and others stepped in to assist with programs that in many cases were effectively financed by energy cost savings
New technology from firms including Cemtrex and Tririga also contributed to the effort as facilities managers took more of a strategic approach to greening the properties they oversee.
In addition to growth in building control systems, the year also saw a rise participation in demand response programs, such as those overseen by Energy Curtailment Specialists Inc., and power purchase agreements.
Other firms continued to forge their own paths to energy efficiency — the math, for now, being too good for the companies to pass up. Among them were REI, which set a goal of installing solar power arrays at 11 stores (about 10 percent of their sites) in 2008, and NetApp, which reeled in a $1.4 million PG&E rebate.
Expect energy efficiency campaigns to drive more of the same activity in the coming year.
Existing Buildings
Experts also say to look for even greater focus on the built environment: infill development, particularly in former industrial areas, retrofits and adaptive reuse — the transformation of buildings from factories, for example, to commercial office space.
Although new construction often captures the headlines, more opportunities abound among existing buildings, says Steven E. Campbell, a senior vice president and director of environmental and development services for the AMB Property Corporation in San Francisco.
Campbell outlined the rationale in a podcast with GreenerBuildings this fall. The current economy is a huge consideration when comparing the cost of new construction to working with existing buildings or redevelopment sites. Even if that were not a factor, in most metro areas space availability and proximity to potential employees and supplies are important elements in favor of a focus on the built environment.
Other emerging trends that are expected to continue in the coming year are mixed-use projects, especially those emphasizing neighborhood and sustainable community developments, as the battered residential real estate market takes a cue from the green commercial buildings arena.
Examples of prominent mixed-use redevelopment projects that landed high LEED ratings in 2008 included the Dockside development along the Victoria harborfront in British Columbia. It set a record by attaining the highest score for a LEED-Platinum structure when it was awarded the designation earlier this year. The Canada Lands Company's redevelopment of the roughly 200-acre Currie Barracks, the last and largest swath of the Canadian Forces Base decommissioned 10 years ago, also won a high rating. It was certified at the LEED-Gold level.
Ventures like the Noisette Project in South Carolina, which serves as an icon for sustainable community redevelopment, and the award-winning new community of Serenbe in Chattahoochee Hills, Georgia, are good examples master planning that incorporates the triple bottom-line of environmental, economic and social responsibility.
Legal Landscape
Green building litigation emerged in 2008 as the relatively new industry began experiencing the challenges typically brought during the early years of business.
The case that brought some of the bigger gasps of the year was the lawsuit to block Albuquerque's green building code — and the ruling by a federal judge that put the regulations on ice. Greening building and legal experts alike were aghast at the filing as well as the major flaw that could have been avoided in crafting the regulations. A check of federal regs to make sure the local ones didn't preempt them could have short-circuited the suit.
Lawyers specializing in green building issues say the best way to minimize legal risk is for green builders to learn where the challenges lie. Getting a JD isn't necessary, they say, but being aware of potential legal pitfalls is.
It's a touchy issue in the green building industry, in which some contend the matter is best left to lawyers and others bristle at the suggestion of opposition to any green building measure.
Expect more news in the legal arena as other cases move through the system in 2009.
Looking Ahead
The Green Building Impact Report by Rob Watson, who also serves as executive editor for GreenerBuildings, provides the first measure of how eco-friendly construction has affected the environment. In doing so, the report also provides one of the best roadmaps on what to look for in coming years and possible paths expedite the green journey.
A podcast conversation between Watson and Greener World Media Chairman and Executive Editor Joel Makower supplements the report with Watson's outlook on future of green building.
Watson speaks of hope and opportunity, while acknowledging that "We've got a lot way to go ... I think that we will continue to see growth, or certainly less slowing in growth, in green and that this is a good thing."