Going green is
growing
Jan 3, 2006 - Houston Chronicle
Author(s): Nancy Sarnoff
Jan. 3--The architect's rendering for a west Houston three-story
office building doesn't look much different from other low-slung
structures with ample parking and modern designs.
But on the inside, this new project will be worlds apart.
When it's completed, the multitenant building will be "green,"
meaning it will be more environmentally friendly and energy- efficient
than others like it, according to its developers.
"We like green buildings because we think it's a good thing to do,"
said Steve Van Amburgh, CEO of Dallas-based Koll Development Co., which
is joining with Prudential Real Estate Services to construct more
buildings like these across the country.
Koll plans to apply for special green building certification from the
U.S. Green Building Council, which awards points to buildings based on
their water usage, energy efficiency, indoor air quality, use of
recycled materials and other sustainability factors. There are four
levels of certification.
While the green building phenomenon is still in its nascent stage in
Houston, Koll's new project signals a growing acceptance of the
movement.
The building breaks ground early this year on a speculative basis, or
with the hopes that tenants will lease space there once construction
begins.
The few certified green buildings here are occupied by the American
Heart Association, SpawGlass and Emerson Unitarian Church. Many of the
ones awaiting certification are also owner-occupied.
In the lobby of the heart association's building, cabinetry is made
from sunflower seeds, the lights in the conference rooms are on sensors
so they go off when the room is empty, and the bathrooms have low-flow
toilets and waterless urinals.
To be sure, it costs a little more to construct an eco-friendly
building.
Until recently, developers haven't been willing to spend extra to
build energy-efficient properties they plan to lease because these kinds
of buildings are often sold soon after they are constructed. If the
owners don't hold on to them for at least a few years, they likely won't
recoup the extra investment they spent on making them green.
"Most developers aren't going to go green because they're going to
flip them," said Craig Krawczyk, an architect with the Garrison Barrett
Group in Birmingham, Ala.
Plus, there hasn't been a certification program meant for these types
of properties. The current system is geared toward owner- occupied
buildings.
That's about to change.
The building council is creating a ratings system that will make it
easier to apply for green building certification -- also known as LEED,
or Leadership in Energy and Environmental Design.
"The ratings system worked great for corporate headquarters, but not
for spec buildings," said Jerry Lea, senior vice president for the Hines
real estate firm and chair of the council's committee on LEED for
speculative, multitenant buildings.
The system is being tested and could be in place by April.
Experts said the cost to make a building green doesn't have to be
excessive.
Dean Strombom, an architect with Gensler who was involved in the
design of Koll's new building, said a construction premium of 2 to 3
percent is not uncommon for a lower level of LEED certification.
While it costs a little more to develop a green building, "it's more
than offset by the energy savings," Van Amburgh said. He said the
electricity bill for the new building will be 50 cents to 75 cents per
square foot less on a yearly basis.
Hines is developing a multitenant building under the new guidelines
in Atlanta.
The additional construction cost was $150,000, Lea said.
The higher costs associated with green buildings can also be offset
by the higher rents they command.
If the building is green, "people will gravitate to it and will pay a
premium," Lea said.
Indeed, some developers see marketing value in a building that touts
lower energy costs and better air quality.
Koll is even branding its three-story, 150,000-square-foot line of
buildings as "Intellicenters."
"I think there's going to be a new benchmark for suburban office
buildings, where if you end up with a building that's not energy-
efficient, from a leasing and marketing perspective you could sort of
find yourself outdated," Strombom said.
The Houston Intellicenter will be built in Westway Park, a 150- acre
business park at Clay Road and the West Sam Houston Tollway.
While most green buildings typically don't show up in the suburbs,
this is the second in the west Houston business park.
According to David Hightower, executive vice president of Westway
Park developer Wolff Cos., another green building is in the works, but
he wouldn't say who it was for.
He said Westway Park has strict development guidelines, which attract
companies interested in green buildings.
For example, developers must plant a certain number of trees
throughout parking lots. Trees help absorb heat while improving the
appearance.
"We're big believers in trees," Hightower said.
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