By Amy Milshtein

Seatbelts and airbags; the auto industry once argued that these features would make a vehicle too costly. Now we can't imagine buying a car without them. Can the same be said for sustainable design?  We know that green features are more than just feel good add ons to a project but economic realities may send sustainable design components to our collective back burner. In fact the third annual Green Building Survey conducted by Allen Matkins Constructive Technologies Group in December of last year shows that while a super majority (93.4%) endorsed building green, only 66.2% (down from 76% in the 2007 survey) agreed that it was worth obtaining official LEED certification from the U.S. Green Building Council.

Other industry insiders report the same communal attitude. According to Emerging Trends in Real Estate 2009, a joint venture put out by the Urban Land Institute and Price Waterhouse Coopers, "Portfolio problems, the construction stall out, and increasing industry angst could distract from the push to reduce buildings' carbon footprints and install green technologies." The report continues to call into question whether green attributes translate into premium pricing. However, the current conditions make reasonable analysis difficult. "It's hard to understand green values since so few have traded," says an interviewee in the piece. "The economics haven't been proven; it's not a driver of rents yet."

Yet the report goes on to say that plenty of reasons for going green remain unchanged. Things like rising energy costs make efficiencies a no-brainer decision. In fact, enhancing energy efficiency in existing buildings can generate $160 billion in savings by 2030, according to a 2007 report by McKinsey and Company.

And then there are the less tangible benefits like the good PR of occupying environmentally correct space. Big tenants want that cache as it helps them attract and retain employees and in some cases clients. As such, some owners insist that LEED is critical. "Developers of Class A office buildings realize that LEED certification has become a competitive baseline to lure tenants out of non-green existing space. In higher-growth development-friendly markets, developers take risks by not spending an additional 3 to 5 percent of project costs for green technologies," according to the Emerging Trends report.

"The last thing a landlord wants is an obsolete building that gobbles resources and has poor indoor air quality," says Jason Hartke, director, advocacy and public policy, U.S. Green Building Council. "Building green makes its own financial case in any economic climate. It becomes even more pronounced now because of the lifetime of energy savings."

Turner Construction Company agrees with the importance of staying green. Their "Green Building Barometer" reports states that 75% of real estate executives including developers, rental building owners, brokers, architects, engineers and others – say the credit crunch will not discourage them from building green. In fact, 83% said they would be "extremely" or "very" likely to seek LEED certification for buildings they are planning to build within the next three years.
    
This mixed message could confuse clients and builders and muddy the push toward truly sustainable design. Yet economic stimulus incentives promise to clear the air. In February of this year President Obama signed into law a $787 billion economic recovery plan designated to put millions of Americans back to work. The American Recovery and Reinvestment Act of 2009 (ARRA) includes billions of dollars that may be used for green buildings, retrofitting, energy efficiency and renewable energy projects. "This Act promises to catapult the US into a leader in the Green Economy," predicts Hartke. "It will spur innovation and change how we approach Green building while putting money back into the economy and creating millions of new jobs."

The ARRA will distribute funds to various areas including: roughly $9 billion for state governors to address school modernization, renovation and repair consistent with recognized green building rating systems.  It will also add $4.5 billion for measures to make General Services Administration facilities high performance green buildings as defined by the 2007 energy law. It also includes several billion dollars for facility-related construction, renovation and repair projects in other federal agencies, including the Department of Defense. The Act also provides money towards home weatherization, public housing projects, and assisted housing retrofitting.

But what, if anything, does this infusion of cash mean for LEED certification? "LEED is a helpful and important metric of accountability," says Hartke. While he admits that awareness of the certification varies, in some key sectors the "LEED brand is very significant. Schools, public buildings, most commercial facilities, and even some residential all realize the importance of LEED certification."

The cost premium for green construction over traditional construction does exist however. Respondents to the Green Building Survey feel that that number is less than 4%. However, many interviewees agree that if green elements are included early in the process LEED Silver or even LEED Gold can be accomplished at no additional cost over traditional construction.

"The next 12 months will see the building industry shored with several billion dollars of investment that promises to push us in the right direction" concludes Hartke. "And a rising tide lifts all boats."ýýý

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