The last ten years have seen significant growth in a new approach to the design, construction and operation of buildings that seek to enhance the overall environmental performance of buildings while simultaneously improving the bottom line. This approach, called "Green Building" also is known as Sustainable Design, Environmentally Conscious Design, Green Architecture or Healthy Design. The recent growth of green building can be partly attributed to greater public awareness and concern for environmental issues. However, it would be a mistake to view this trend as being driven primarily by a philosophical commitment to the environment. The business community is gradually accepting green building because it makes good business and economic sense.

The idea that building green can actually improve the financial performance of a building may seem new to some people. However, there is a growing list of successful companies that are consciously using a sustainable approach to business in which environmental and economic concerns mutually reinforce each other. Many of these companies have built green buildings and have received sizable returns on their capital investments. These companies include Patagonia, The Gap, Herman Miller, Interface, Sony, Wal-Mart, Duracell, HBO and S.C. Johnson. The Defense Department, the National Park Service and many local city governments also have adopted green building standards for the long-term economic value these standards add to public buildings.

In order to understand the economic benefits of building green, it is necessary to have a clear idea of exactly what "green building" entails. First, green building is not a particular aesthetic or architectural style. A green building does not have to look organic or "natural" to be green. It can be designed in almost any style, because the focus of a green building is environmental and economic performance. A green building is simply a building that is designed, constructed and operated utilizing an integrated design approach in order to enhance the overall environmental performance of a building and its site. A company does not have to build a wildly expensive, state-of-the-art green building to realize the economic benefits of this approach. Modest green building upgrades often will yield significant environmental and economic benefits.

The key to realizing the economic benefits of green building is to work with design and construction professionals who have experience with this approach to construction. Since no two building projects are alike, these professionals can work with clients to develop focused green building strategies that are cost effective and respond to the unique needs of a client's business. The need for knowledgeable professionals is particularly acute given the explosive growth of new materials, technologies and services that have come about in the last few years.

Although the array of possible green building strategies is almost limitless, most of these strategies fall into one of two broad categories: resource-conscious design strategies and healthy design strategies. Resource-conscious design strategies involve reducing a building's consumption of the earth's resources over the entire life of a building. These strategies include efficient land use, energy efficiency, storm water filtration, minimal habitat disruption, native landscaping, water efficiency, waste reduction and selection of building materials with minimal environmental impact. Healthy design strategies on the other hand, include enhancing all aspects of the interior environment that contribute to making building occupants more healthy and comfortable. These include enhanced indoor air quality, daylight access and quality, thermal comfort, acoustics and a greater connection to the outdoors.

Many building owners are surprised to learn that the cost to design and build a building is insignificant compared to the cost of owning and operating a building over its useful life. According to the Building Owners and Managers Association, only 2 percent of the total cost of building, owning and operating a typical office building over a 30 year period is for design fees and construction costs. Operations, maintenance, finance and employee costs account for the remaining 98% of the total costs.

Although some green building strategies can reduce the initial cost of a building, most of these strategies will cost slightly more than a conventional building. However, if these strategies are designed synergistically, the initial building cost can be minimized and significant savings can be realized over the life of a building.

The following economic benefits can be expected from a green building:

1. Reduced Operating Costs: It is possible to reduce building energy consumption by 20 to 30 percent within the constraints of most building budgets. This increased energy efficiency can reduce energy costs over the life of a building. Native landscaping can reduce landscape maintenance costs by $3,000 to $4,500 per acre per year as compared with conventional turf grass.
2. Reduced Waste Costs: Green buildings that are designed with raised computer floors and flexible open space can significantly reduce construction waste in facilities that undergo frequent remodeling. This can significantly reduce remodeling costs. Reusing an existing building can also significantly reduce new material usage and cost compared to building a brand new building.
3. Reduced Liability: Enhanced indoor air quality can reduce the risk of "sick building syndrome" and the associated legal costs that may be incurred if the problem cannot be easily remedied.
4. Enhanced Employee Productivity: Several case studies of completed green buildings have shown significant improvements in productivity because workers were breathing better quality air, had a connection to the outdoors and worked in spaces with natural day light.
5. Public Relations: Since green building is relatively new, we have found that many green building projects have received local and national media coverage even before ground breaking.
6. Streamlined Regulatory Approvals: Sustainable site design strategies often can build public trust and streamline regulatory approvals.
7. Niche Marketing Opportunities: Several retailers who sell green products have built green stores and corporate headquarters in order to enhance the marketing of their green product lines. Some hospitality companies have used selected green building strategies to differentiate their services in the marketplace and to obtain a higher price for these services.

Successful and economically rewarding green building projects are the result of working with an experienced design and construction team. If you would like more information about green building educational resources or local green building design and construction professionals, please contact connielindholm@wgba.org

Connie Lindholm
Wisconsin Green Building Alliance
759 N. Milwaukee Street, Suite 304
Milwaukee, WI 53202
Phone (414) 224-9422
Fax    (414) 224-1458

Matthew D. Tendler, AIA , is an architect and associate with Kahler Slater Architects with offices in Madison & Milwaukee, where he leads the firm's Sustainable Design Initiative. Matt can be reached at (414) 272-9037 or by e-mail at mtendler@kahlerslater.com. This article is exerpted from the May 31, 1999 Madison Business Journal.