The current financial crisis has arrived in full force and is making its presence felt. One of the sectors that have been hit the hardest by these economic woes is the commercial real estate sector. In times like these, people will rarely deviate from the norm, but sometimes, deviation is exactly what is needed. This article will evaluate the continuing health and viability of the green building movement against the backdrop of the financial crisis.

Many businesses are recognizing green building as a unique opportunity to thrive during economic hard times. In a recent article, National Real Estate Investor Online spoke with Al Skodowski and Rick Walker of the Transwestern Commercial Real Estate Company about how green building will be impacted by a down economy. The general sentiment expressed by Skodowski and Walker is clear: Not only is a down economy not likely to hurt green buildings, but chances are that it will actually help the growth of the movement. Their reasoning? In this time of economic uncertainty, the increased efficiencies and lower operating costs yielded by green buildings help to save money in the long run as well as provide a product capable of attracting and retaining tenants.

USGBC had a candid dialogue with Randy Gaines, Vice President of Engineering for Host Hotels and Resorts, and a Q&A session with Jessica Halvorsen and Lisa Shpritz, from Bank of America’s Corporate Workplace department, who direct Bank of America’s real estate sustainability efforts.

USGBC spoke with Mr. Gaines in an effort to gauge how the organizations that have shown a commitment to sustainability in the hospitality sector are responding to the financial downturn. When asked about whether or not the current economic climate was affecting Host’s commitment to sustainability generally and LEED specifically, Gaines said, “Host still sees value in LEED and is sticking to their commitment to having hotels pursue LEED-EB (LEED for Existing Buildings) certification. We are not backing out of those plans in response to the economic situation. We are still committed to the goal of being a greener company and still committed to green as part of our social responsibility.” Gaines further went on to discuss how Host Hotels has been able to capture a significant ROI through certain green initiatives, something that is of great benefit to the company during financially constricting times. Specifically, Gaines gave an example of how the rising cost of water and sewer treatment in Atlanta pushed them to replace 3.5-gallon toilets with 1.28-gallon toilets, a move that produced a two-year ROI.

The volatility of energy prices is another factor that has pushed Host to maintain its sustainability efforts, prompting Gaines to say, “Tight budgets have encouraged Host to pursue energy savings more aggressively: In today’s environment, Host is going to do a lot more retro-commissioning and we are going to keep fine-tuning our buildings. That’s straight shareholder value – they need every penny we can get out of these hotels. We want to do more retro-commissioning, and focus on operational efficiencies. We need to squeeze more efficiency out of those buildings.”

While generally positive, Gaines was also realistic about green initiatives and how Host decides which ones to pursue. “We are cutting back on some green initiatives. We are doing the ones that are cost-neutral but have to evaluate the ones that have a cost premium associated with them.” That evaluation consists of what kind of ROI they will be able to capture from any given initiative. While not elaborating on which initiatives might get left by the wayside, Gaines did point out that Host is taking a hard look at things like the cost of recycling carpet and vinyl.

Corporate Real Estate’s take on sustainability in these uncertain times

When asked how the current economic climate is affecting Bank of America’s green building initiatives, Lisa Shpritz had this to say: “Our commitment to LEED and sustainability remains strong. All of our commitments have been made with an eye to financial stability, so a lot of what we’ve done has been integrated into business as usual.” Both Shpritz and Halvorsen mentioned how the USGBC’s volume certification pilot process has come along at just the right time and that it “makes a lot of economic sense.” Along the same lines, when asked if Bank of America still sees value in LEED, Halvorsen replied: “Green building and sustainability make sense for Bank of America’s business. LEED contributes to the health of the overall community. If our communities and customers aren’t doing well then we aren’t going to be able to do well either.”

Has Bank of America changed the way it operates its building portfolio, and what, if any, low- or no-cost strategies have been implemented? Shpritz said, “For example, in our portfolio, we have continued to implement green cleaning, since it is a cost-neutral initiative. In this economic climate, the focus on LEED for Existing Buildings is that much more important. We have found that LEED-EB is a useful tool for improving the environmental performance of our existing portfolio. When looking at low- and no-cost pursuits, collaboration with vendors is essential. It’s vital to engage in dialogue with vendors and suppliers when trying to manage costs while integrating sustainability.”

Bank of America is following a common theme among corporations actively pursuing sustainable building initiatives. The more efficiently a building is run, the higher a return on investment one is likely to capture while lowering the environmental impact. According to Shpritz, green design and construction continue to serve as vital components of the company’s environmental commitment: “Our standard new construction prototype for banking centers has been pre-certified. Bank of America Tower at One Bryant Park in New York will be fully complete in 2009, and we’re pursuing LEED Core and Shell at the Platinum level. We have also recently received Platinum certification of a banking center in Southern California.”

So far, the sentiment seems to be consistent: Going green in this economic climate creates money-saving (and moneymaking) opportunities – and not the other way around – and is something that will be revisited in further editions of the Commercial Markets Update Newsletter.

Decorating with Fabric Contract has a tremendous selection of Solar Shade Fabrics. In fact it’s the largest in the New York Metropolitan area. “We have hundreds of choices!” says Neil Gordon owner of Decorating with Fabric Contract.

Solar Shade Fabrics are divided by what is known as its “Openess Percentage”. 0% being the tightest weave and least open, to 25% being the most open weave. The best way to select a solar shade fabric is to understand what issue needs to be addressed. Is it too much heat entering the room, or is it too much glare that the computer screens can’t be seen well?

The tighter the weave, or lower the percentage number, the fabric will perform better. There is also the issue of color. Lighter colors reflect more heat and darker colors reduce more glare.

Which ever problem there may be in a office, or a home, there is a solar shade fabric that will come to the rescue. To see the complete selection of Solar Shade Fabrics contact Decorating with Fabric Contract for an appointment. 845-352-5064

In these times when energy costs are going through the ceiling AND literally out the windows, I just HAVE TO TELL YOU about wonderful new EcoSmart Cellular ShadingsTM. These are not your everyday single-cell cellular SHADINGS that you’ve seen around for years… these amazing energy-savers are full DOUBLE CELL constructed, adding a full additional layer of air cushion between you and your windows that helps keep cool rooms cooler, and warm rooms warmer, just when you want them to.

Made from special sealed fabrics for additional thermal advantage, EcoSmart Cellular Shades come in a vast array of colors, fabrics and styles, and offer a compliment of options to make just about any window a money-saver, too. You can choose from translucent or room-darkening shades as well, so light control is still in your control. Add the Side Track option for even better savings and temperature control. Make them child safe, too, with a cordless option!

Based on where you live, EcoSmart Cellular Shades can pay for themselves in energy savings in less than five years. And with energy costs soaring, that’s no small savings! Check the chart to find a city near you, and see how the proven thermal qualities of EcoSmart’s double cellular technology can actually put you ahead of the energy curve. Then you’ll see why even expert window fashions professionals are installing them in THEIR OWN HOMES… beauty, energy-savings and comfort, all in an affordable double-cellular shade made by hand specifically for your windows.

Besides being able to fix just about any design or decor problem that comes up, there are some timely issues you can avoid just by calling me. I bring with me a wealth of ideas, products and experience no single store can match: and I bring it all right to you, in YOUR home, where you’ll be able to envision everything together, where it will be seen after professional installation. And since I come to you, you’ll save gallons of gas by just staying home and enjoying the ultimate in convenience-in-home shopping. I also always know what’s available at special prices, and will be glad to tell you about only the best values within your budget. Call me today and let’s start saving money right away: and be sure to ask me about EcoSmart Energy-Saving Cellular Shadings!

Windows are the weak link, thermally speaking, in most building envelopes. Modern windows are much better than old single-pane windows and store-fronts, but they still represent a compromise—we accept their mediocre thermal performance because we want the daylight, views, and ventilation they offer. It’s true that south-facing windows in a good passive-solar design can heat a space in winter, but even these have to be managed carefully to avoid losing more heat at night than they provide during the day or introducing too much solar gain when it isn’t wanted.

Windows and glazing systems allow unwanted heat flow in several ways. They tend to have cracks and gaps around their edges that allow air to leak in or out. They allow heat transfer via conduction across the glass and frames. And they allow heat to radiate through, both as visible light and as invisible, infrared radiation. This solar gain is the biggest source of cooling loads in buildings with large areas of glass.

In the 1950s and 1960s, designers began using tinted glass to reduce solar gain, but that approach reduces visible light transmittance, affects the appearance of the glass, and impairs views. The introduction of low-emissivity (low-e) coatings on glass in the 1980s was a big breakthrough because these “spectrally selective” coatings are more transparent to visible light than they are to invisible radiation, so they cut down on heat flow without affecting visibility as much. Low-e coatings work in two ways: they reflect certain wavelengths of radiation back towards the source and they prevent heat absorbed by glazing from re-radiating on the other side of the window. Newer generations of low-e coatings have gotten even better at distinguishing light from heat, and they can be specified to optimize their performance in relation to solar gain, visible light transmittance, and heat loss from indoors.

These coatings are especially effective when used in insulated glazing units (IGUs) with a low-conductivity gas such as argon or krypton instead of air between two, three, or more layers of glazing. Those with more than two panes often use one or more polyester films suspended between two panes of glass to provide the additional layers. Double-pane, low-e, argon-filled windows are commonly used in the U.S. today. These achieve a U-factor of about 0.3 (R-3), and reduce solar heat gain by 30% to 50%. Windows with U-factors as low as 0.2 (R-5) and solar heat gain reductions of 70% are readily available.

As the glazing systems themselves improve, heat gained or lost from conduction through the edges and frames and from air leakage become relatively more important. Special “warm-edge spacers” (in place of conventional, highly conductive, aluminum spacers) can help to reduce heat loss and prevent condensation around the edges of the windows. Insulated window frames significantly reduce heat flow compared with standard frames. And good gaskets, sealants, and weatherstripping are important in reducing air leakage, which is often a huge problem in older buildings.

Decorating with Fabric Contract & LEED

Detailed below we have identified a number of key areas where Decorating with Fabric Contract can assist architects/designers in accumulating LEED credits.  The process of documenting these credits requires technical data from Decorating with Fabric Contract and signed authority from the architect or engineer.  The template of this document can be found on the USGBC website (www.usgbc.org).

EA Credit 1 (Optimize Energy Performance)

• • The intent of this section is to achieve energy performance above the prerequisite standards to reduce environmental impacts associated with excessive energy use.
  • Credits: 1 – 10
  • Decorating with Fabric Contract offers contract products with thermal reduction characteristics such as GreenScreen® reflective fabrics, Duette® honeycomb fabrics, specific horizontal blind slats, etc.) which reduce the energy use of air conditioning systems.  Credits are available for as little as a 5% reduction in measurable energy usage.

MR Credit 4.2 (Recycled Content)

• • The idea here is to increase demand for building products that incorporate/have incorporated recycled content.
  • Credits: 1 – 2
  • Decorating with Fabric Contract through Hunter Douglas utilizes aluminum slats that are composed of 70% – 95% & 5% of plastic parts used in our products are Post-Industrial recycled content. The aluminum offal/process waste is gathered from other Hunter Douglas facilities worldwide and is melted down & reused for new slat material. Plastic is from process waste and is from runners or bad product.

MR Credit 5.1 (20% Manufactured Regionally)

• • The intent of this section is to increase demand for materials and products manufactured in the region. To receive credit 20% of the building materials must be manufactured within 500 miles of the project. Manufactured only implies final assembly, not raw materials.
  • Credits: 1
  • Manufacturing facility sites: Cumberland, MD 21502/ Pinellas Park, FL 33782/ Murray, UT 84123/ Renton, WA 98055/ San Jose, CA 95131/ Poway, CA 92064/ Broomfield, CO 80020/ Ft. Lauderdale, FL 33309/ Bessemer City, NC 28016

EQ Credit 4.2 (Low-Emitting Materials: Paints and Coatings)

• • The intent of this section is to reduce the quantity of indoor air contaminants.
  • Credits: 1
  • Decorating with Fabric Contract GreenScreen® PVC-free sun screen fabric contains no VOCs and requires no off gassing commonly associated with traditional roller shades. All paints used to coat aluminum and or steel components used in the manufacturing of our contract products are lead free as described by federal law.

EQ Credit 6.1 (Controllability of Systems: Perimeter Spaces)

• • The intent here is to provide a high level of thermal, ventilation and lighting system control by individual occupants or specific groups
  • Credits: 1

EQ Credit 7.1 (Thermal Comfort: Compliance with ASHRAE 55-1992)

• • Comply with thermal, humidity and air control standards outlined in ASHRAE 55 – 1992.
  • Credits: 1
  • This credit is available to buildings that regulate the above with 90% acceptability limits in both mechanically and naturally ventilated spaces.  Both internal and external shading/ window covering devices are potential solutions.

EQ Credit 8.1 (Daylight and Views: Daylight 75% of Spaces)

• • Provide the building occupants a connection between indoor spaces and outdoors through the introduction of daylight into the regularly occupied areas of the building.
  • Credits: 1
  • Both external and internal shading/ window covering devices are potential solutions.

ID Credit 1.1 – 1.4 (Innovation in Design)

• • Innovation credits are available to buildings that substantially exceed the requirements outlined in the LEED certification manual.
  • Credits: 4