GREEN REPORT LATIN AMERICA | DECEMBER
2010
TRA N S O C EA N IC A BUS I N ESS PAR K | PHOTO S BY GU Y W E N B O R N E
Accelerating success.
TABLE OF CONTENTS GREEN REPORT | LATINAMERICA | DECEMBER 2010
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INTRODUCTION
1
WHAT IS A SUSTAINABLE OR GREEN BUILDING?
2
- Green buildings consider 6 different categories - Average Savings – Green Buildings USA BENEFITS OF SUSTAINABLE CONSTRUCTIONS:
3
- Benefits achieved. - Environmental benefits. - Economic benefits. - Health and Community benefits. HOW TO START A SUSTAINABLE PROJECT:
4
- Councils established in Latin America. - Future Councils in Latin America. 4 LEVELS OF LEED® SUSTAINABLE CERTIFICATION
5
- How much more expensive is a sustainable construction? - Cost comparison of sustainable constructions - How to achieve sustainability? - Case study WORLD GREEN BUILDING COUNCILS
6
TYPE OF PROJECTS
7
WHAT IS THE LEED RATING SYSTEM?
9
- Total LEED projects by rating system WHO IS A LEED AP®? - LEED profesionals by specializaton in Latin America.
INDEX | COLLIERS INTERNATIONAL
10
INTRODUCTION Nowadays is common to hear architects, interior designers, engineers and even real estate professionals talk about concepts such as the Kyoto protocol, carbon neutral, sustainable construction, bioconstruction and other theories or tools recently developed from the need to generate global social awareness about the environmental crisis we face. Many of these “green” tools assist professionals for instance by indicating the chemical composition of materials or measuring the emissions produced by an operating building – this with the purpose of More than 40% of gas emissions associated to the green house effect result from the inefficiency in the
assisting in reducing, stopping or eliminating the environmental impact caused by the construction industry, offering at the same time environmental and socioeconomic advantages.
use of building resources and
We expect the construction sector to adopt the “green” concept not only as a
communities around the world.
trend, but as an important attribute of new commercial developments. For many developers adopting these green initiatives in their commercial projects can bring many benefits such as recognition as an environmental champion, assistance in meeting local environmental regulations, decrease operating costs, diminish staff rotation of current tenants, allow for better use of human capital and other resources and increase space efficiency among others.
FROM USING DRINKABLE WATER
17%
FROM CONSUMING NATIVE WOOD
25%
FROM CO2 EMISSIONS
33%
Colombia and Mexico have already established Green Building Councils and
FROM ENERGY USE
30 - 40%
process. Ecuador, Paraguay, Dominican Republic and Venezuela are only a few
FROM PRIME MATERIALS USE
40 - 50%
That is why several Latin American countries have joined global organizations such as the World Green Building Council in order to create awareness about this type of construction in their local markets. For example, Argentina, Brazil, Chile, Costa Rica, Guatemala, Panama, Peru and Uruguay are currently in the of the 16 other countries interested in creating their own Green Building Councils. With the objective of accelerating our clients understanding of these new sustainability concepts and ideas, Colliers International has gathered regional information from our Latin American specialists to better assist in the understanding of this topic. Colliers International Latin America remains committed to delivering the best real estate market advice available and as always we welcome your comments and questions.
GREEN REPORT | LATINAMERICA | DECEMBER 2010
WHAT IS A SUSTAINABLE OR GREEN BUILDING?
GREEN BUILDINGS ENCOMPASSES 6 DIFFERENT CATEGORIES
Sustainable constructions or Green buildings as they are usually known are structures specifically designed to reduce the negative impact on human beings
Sustainable Sites
and the environment. Their objectives are: Water Efficiency
- Efficient use of energy, water, land and materials. - Protect the well being of its occupiers and improve the productivity of employees.
Energy and Atmosphere
- Reduce waste and contamination generated by the building. Green Buildings are designed to achieve a high level of productivity during their
Materials and Resources
complete life cycle – from site selection, through their designing process all the way to the end or demolition.
Indoor Environmental Quality
Sustainable constructions are significantly better than standard buildings. They use less energy, save money in the long run, improve comfort levels for their occupiers and are environmentally friendly.
Innovation in Design
In order to obtain the maximum amount of benefits from sustainable buildings, the whole process has to integrate all different disciplines – i.e. designers, architects, construction process, etc.
AVERAGE SAVINGS – GREEN BUILDINGS USA These are some of the figures gathered by the USA Green
ENERGIA
ENERGY
Building Council about average savings achieved by green buildings.
CARBON EMISSIONS
WATER
SOLID WASTE
24% - 50% 33% - 39% 30%-50%
50%-90%
*Source: USGBC
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
BENEFITS OF SUSTAINABLE CONSTRUCTIONS:
BENEFITS ACHIEVED - 8% - 9% in operational costs savings. (*)
Sustainable construction has multiple benefits, given that it is based on 3
- 7.5% increase in property value. (*)
fundamental principles called “The Triple Bottom Line” consisting of Economic
- 6.6% improvement in return on investment (ROI). (*)
Prosperity, Social Responsibility and Environmental Management.
- 3.5% increase in building occupancy levels. (*) - 3% increase in lease rates. (**)
ECONOMIC PROSPERITY
- 40% savings in water usage. (***)
- 13% savings in maintenance costs. (****) - 27% increase in occupancy satisfaction levels. (****)
THE TRIPLE BOTTOM LINE
RE SO SP CIA ON L SIB ILIT
AL NT ME IP ON SH VIR RD EN EWA ST
- 22% - 16% increase in productivity of workers and students. (****)
Y
- 24% - 50% savings in energy consumption throughout the entire building life cycle. (***)
- 20% improvement in the performance of students in exams. (*****) - 2.5 days ahead in discharge rates from hospitals. (****)
ENVIRONMENTAL BENEFITS: -
Improves and protects ecosystems and biodiversity.
-
Improves the quality of both air and water.
-
Reduces solid waste.
-
Sustains natural resources.
ECONOMIC BENEFITS: -
Reduces Operating Costs.
Trends in the European and U.S. Construction
-
Increases the value and benefits of company assets.
Marketplace SmartMarket Report 2008.
-
Improves the productivity and satisfaction level of employees.
-
Optimizes the economic performance during its complete life cycle.
(*) Source: Mc‐Graw‐Hill Construction, Key
(**) Source: Mc‐Graw‐Hill Construction, Greening of Corporate America SmarMarket Report 2007.
HEALTH AND COMMUNITY BENEFITS: (***) Source: Kats, G (2003). The Costs and Financial Benefits of Green Building: A report to California’s Sustainable Building Task Force. (****) Source: USGBC
-
Improves heating, acoustics and air quality.
-
Increases the level of comfort and health of occupiers.
-
Relieves local infrastructure stress levels.
-
Improves overall quality of life.
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
WORLD GREEN BUILDING COUNCIL
HOW TO START A SUSTAINABLE PROJECT: The first step in the process is fundamental - it consists of defining the sustainability level of the project. There are several sustainable construction certifications such as BREEAM®, Green Star ® , CASBEE ®, GSBC® and LEED®
FOUNDING GLOBAL MEMBER WGBC
among others and they all have different levels of sustainability (see table). The
World Green Building Council -WorldGBC® - promotes the adoption of all the different systems of sustainable construction certification – the WorldGBC® is an organization that has as a main objective facilitating the exchange of information regarding the environmental performance of sustainable buildings in the different green building councils in each country.
EXISTING COUNCILS IN LATIN AMERICA: Argentina Green Building Council (AGBC)
The LEED (Leadership in Energy and Environmental Design) Certification was created by the US Green Building Council and it is actually the most widely used certification in America and one of the most utilized around the globe (more than 120 countries).
Colombia Green Building Council (CCCS) Mexico Green Building Council (CMES) Green Building Council Brazil (GBC Brasil)
FUTURE COUNCILS IN LATIN AMERICA: Guatemala Green Building Council (GGBC)
BREEAM ®
Green Star ®
Pass
One Star
Good Very good Excellent
CASBEE ®
GSBC®
LEED®
C
Bronze
Certificate
Tow Stars
B
Silver
Silver
Three Stars
B
Gold
Gold
Four Star
A
Five Stars
S
Platinum
Six Stars Note: The levels are not comparable in between, that means, a star Green Star is not equivalent to the LEED Certified
Costa Rica Green Building Council. (CRGBC) Peru Green Building Council (PGBC) Panama Green Building Council. (Panama GBC) Uruguay Green Building Council. (UYGBC)
Once a sustainability level has been decided, it is important to integrate each one of the resources and disciplines in the design, construction and operation process. These are the teams in charge of design, construction, subcontractors, users and building operators. This has to be done to ensure that all the different
Chile Green Building Council. (Chile GBC)
groups work as a team to achieve better synergy and achieve the sustainability
*Source: World GBC & GBCs Website.
goals set at the beginning of the process. The integrated design is one of the most important factors in the development of sustainable buildings and a key element to avoid going over budget.
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
How to achieve sustainability?
4 LEVELS OF SUSTAINABLE LEED® CERTIFICATION:
1. Determine the level of sustainability.
Leadership in Energy and Environmental Design
2. Integrate the costs of design and construction. 3. Evaluate the cost-benefit of the points wished to obtain.
Certificate
Silver
Gold
Platinum
40 – 49 Pts.
50 – 59 Pts.
60 – 79 Pts.
80 – 110 Pts.
LEED® V3
HOW MUCH MORE EXPENSIVE IS A SUSTAINABLE CONSTRUCTION?
Study Case Case Study: Homecenter Sodimac – first retail LEED® Certificate store in Latin America.
Generally, most people think sustainable construction is costly but in reality it is not more expensive and in some cases it can even be cheaper than conventional construction. The most commonly made error that makes a sustainable project more expensive is to decide or modify after the design process the desired level of sustainability - this is what results in many of the additional costs. Another mistake is to work individually without any interaction among the different teams and professionals working on the project. This increases the cost of hiring professionals because of the many extra hours needed to fix errors that could have been avoided.
COST COMPARISON OF SUSTAINABLE CONSTRUCTIONS As mentioned before it is necessary to determine the level of sustainability desired for the project and then decide how many “points” to achieve given that there some more expensive than others but that in the end translate into more savings in the operation of the project. Nevertheless, these costs can be greatly LEED CERTIFICATE® , Silver Category, Points: 34/69 SUSTAINABLE SITE: 10/15 Pts. WATER EFFICIENCY: 3/5 Pts. ENERGY & ATMOSPHERE: 6/14 Pts. MATERIALS & RESOURCES: 2/11 Pts. INDOOR ENVIRONMENTAL QUALITY: 11/11 Pts. INNOVATION & DESIGN PROCESS: 2/5 Pts. REGIONAL PRIORITY: WATER SAVING: higher than 24% ELECTRICITY SAVING higher than 350,000 kwh per year.
reduced or even eliminated if sustainability objectives are clearly defined in the pre-design stage.
Platinum
6.8%
Gold
2.2%
Silver
1.9%
Certificate
0.66%
*Source USGBC
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
WORLD GREEN BUILDING COUNCILS 20 Established
6 Emerging
25 Prospective
25 Associated Groups
*Source:: World GBC - October 1st, 2010
ESTABLISHED:
GLOBAL
Argentina – www.argentinagbc.org.ar Brazil - www.gbcbrazil.org.br Colombia - www.cccs.org.co Mexico - www.mexicogbc.org
34,618 projects registered. 6,495 certified projects. 28,123 certified projects in process. 124 countries. 137,223 accredited profesionals.
EMERGING: Chile – www.chilegbc.cl Costa Rica – www.crgbc.org Guatemala - www.guatemalagbc.org Panama – www.panamagbc.org Peru – www.perugbc.org.pe Uruguay – www.uygbc.org
LATIN AMERICA
*Source - WorldGBC
*Source - USGBC
523 projects registered. 33 project certified buildings. 490 certified projects in process. 25 countries. 467 accredited profesionals .
PROSPECTS: Ecuador - www.ecuadorgbc.org Paraguay Dominican Republic – www.drgbc.org Venezuela *Source - WorldGBC
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
2° T 2010 1 T 2010 4° T 2009 2° T 2010 1° T 2010
8
3 76
73 2 49
47
1° T 2010
2 37
35 27
2° T 2010
142
4 98
2 29
4° T 2009
BERMUDA
18 13
2° T 2010 1° T 2010
9
4° T 2009
7
2° T 2010
CAYMAN ISLAND
21
13
1° T 2010
1 14
18
4° T 2009
1 4
2° T 2010
15
1° T 2010
3
4° T 2009
3
2° T 2010
5
1° T 2010
3
4° T 2009
2
2° T 2010
5
1° T 2010
4
2° T 2010 1° T 2010
5 1
4° T 2009 2° T 2010
4
1° T 2010
2
4° T 2009
2
2° T 2010 1° T 2010
4 1
4° T 2009 2° T 2010 1° T 2010
4 1
4° T 2009 2° T 2010
2
1° T 2010
2
4° T 2009 2° T 2010
2
1° T 2010
2
4° T 2009
2
ECUADOR
4° T 2009
PARAGUAY
1° T 2010
2
SANTA LUCIA
26
1° T 2010
5
JAMAICA
2° T 2010
2° T 2010
TRINIDAD Y TOBAGO
12
EL SALVADOR
4° T 2009
PUERTO RICO
20
FALKLAND ISLANDS
1° T 2010
REPUBLIC DOMINICAN
31
NETHERLANDS ANTILLES GUATEMALA
CHILE ARGENTINA COLOMBIA COSTA RICA PANAMA
64
94
4° T 2009
PERU
82
134
4° T 2009
URUGUAY
12
52
2° T 2010
BRITISH VIRGIN ISLANDS
14
68
175
17
158
CUBA
MEXICO
BRAZIL
TOTAL LEED® CERTIFIED PROJECTS AND IN PROCESS
2° T 2010
2
1° T 2010
1
4° T 2009
1
2° T 2010
1
1° T 2010
1
4° T 2009
1
2° T 2010
1
1° T 2010
1
4° T 2009 2° T 2010
1
1° T 2010 4° T 2009 2° T 2010
1
1° T 2010 4° T 2009 2° T 2010
1
1° T 2010 4° T 2009 2° T 2010
1
1° T 2010 4° T 2009
4° T 2009
Projects In Process
Certified Projects
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
On average green building projects take 2 years from the time they are registered to their final certification. However, it is important to mention the exponential increase in registered projects between 1st and 2nd semester of 2010 in Brazil and a twofold increase in certified projects during the same period in Mexico.
TOTAL LEED速 PROJECTS BY TYPE 6.87% 6.84%
OTHERS SPECIAL NEEDS HOUSING LOW INCOME HOUSING SINGLE FAMILY DETACHED HOUSING TRANSPORTATION THEATRES
0.55% 0.20% 0.14% 0.00% 0.44% 0.20%
Regarding Argentina, Chile, Colombia, Costa Rica and Panama an important increase in the short term is expected, given the tendency in new sustainable projects.
1.14% 0.60% 1.25% 0.80%
HEALTH
2.64% 2.21%
MEETING ROOMS
2.80% 2.41%
4.19%
RESTAURANT
PARKS PUBLIC SAFETY
8.05%
5.76% 8.85%
MULTI-UNIT RESIDENTIAL RECREATION
Currently, more than 46% of all green projects are related to office and retail projects followed by residential and hotel/resorts projects.
2.75% 3.02% 1.12% 0.40% 2.03% 0.40% 24.69%
OFFICE SPACE LABORATORIES
2.92% 0.80%
INDUSTRIAL
3.28% 2.82%
HOTEL/RESORT DAYCARE FINANCES & COMMUNICATIONS STADIUM/SPORT ARENAS UNIVERSITY/COLLEGE SCHOOLS ANIMAL PROTECTION INSTALLATIONS COMMUNITY CENTERS CAMPUS LIBRARY MILITARY INSTALLATIONS
In the short term it is even possible to experience an increase in this trend given the level of importance some governments currently give to green initiatives.
9.02% 11.47%
RETAIL
1.96%
35.01%
On the other hand it is important to notice the big gap that still exists between Latin America and the rest of the world regarding public infrastructure projects.
7.85%
1.07% 1.99% 3.22% 0.33% 0.40% 5.88%
1.01%
3.21% 0.40% 0.39% 0.00% 3.13% 1.21% 1.01%
4.68%
1.50% 0.40% 0.40%
4.28%
Latin America Projects Global Projects
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
WHAT IS THE LEED RATING SYSTEM?
TOTAL LEED® PROJECTS IN LATIN AMERICA BY RATING SYSTEM
The LEED Rating systems are the different certifications available to projects. In this way a new project can chose to obtain from 1 to 3 certifications: LEED
LEED FOR NEIGHBOURHOOD DEVELOPMENTS
for Core & Shell, LEED for Commercial Interiors and LEED for Existing Buildings: Operations & Maintenance. It is important to mention that the LEED for Existing Buildings: Operations & Maintenance certification is for both
LEED FOR 26 8 34 COMMERCIAL INTERIORS LEED FOR CORE & SHELL
buildings LEED certified or not and it is the only one requiring renewal. On the other hand the LEED for Core & Shell certification is the only one allowing for 171
LEED FOR NEW CONSTRUCTIONS
pre-certification. The complete and official names of the LEED 2009 rating
7 178
243
systems are: HOMES
17 260
NEIGHBOURHOOD DEVELOPMENTS COMMERCIAL INTERIORS
LEED FOR 7 SCHOOLS
CORE & SHELL NEW CONSTRUCTIONS
LEED FOR RETAIL LEED FOR EXISTING BUILDINGS: OPERATIONS & MAINTENANCE
SCHOOLS, RETAIL AND HEALTHCARE BUILDING LIFE CYCLE
DESIGN
EXISTING BUILDINGS OPERATIONS & MAINTENANCE
CONSTRUCTION
OPERATION
43 1 44
TOTAL LEED PROJECTS BY RATING SYSTEM 19,629 3,496
Projects In Process Certified Projects
16,133
*Statistics October 12, 2010. -It was not possible to obtain the total number for Homes. -Neighbourhood Developments and Retail are only available in the US.
4,247 1327
188 49
2920
139 LEED FOR NEIGHBOURHOOD DEVELOPMENTS
LEED FOR COMMERCIAL INTERIORS
5,400
3,494 574
12,75 66 1209
2920 LEED FOR CORE & SHELL
-Health is currently on its approval process.
NEW CONSTRUCTIONS
LEED FOR SCHOOLS
385 242
143 LEED FOR RETAIL
LEED FOR EXISTING BUILDINGS OPERATIONS & MAINTENANCE
GBCI™: Green Building Certification Institute Projects In Process Certified Projects Total Projects
*Source GBCI™: Green Building Certication Institute - Statistics October 12, 2010.
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GREEN REPORT | LATINAMERICA | DECEMBER 2010
WHO IS A LEED AP?
TOTAL LEED AP® & LEED GREEN ASSOCIATE. NETHERLANDS ANTILLES 0
Since May 2009 a LEED Specialist is an accredited professional with all the
15
ARGENTINA
knowledge and experience in sustainable construction. Any obtained
BAHAMAS 4 BELICE 0
credentials need to be renewed every two years through continuing education,
BOLIVIA 2
practical experience or submitting the exam again. The first tier exam is called 68
BRASIL
LEED Green Associate. The second tier exam is called LEED Accredited
46
CHILE COLOMBIA
32
COSTA RICA
36
Professional with specialty and has five separate exams to allow for individual specialization.
CUBA 0 7
ECUADOR
LEED
EL SALVADOR 0
GREEN
GUATEMALA 3
ASSOCIATE
GUAYANA 0 FRENCH GUIANA 0
LEED
HONDURAS 1
ID+C
8
CAYMAN ISLAND
LEED
LEED
LEED
AP AP AP AP AP
17
BERMUDA ISLAND
LEED HOMES
0+M
ND
BD+C
MALVINASISLAND 0 BRITISH VIRGIN ISLANDS
5
JAMAICA 2 128
MEXICO
Source GBCI, Professionals Credentials
NICARAGUA 3 PANAMA
9
PARAGUAY 2 PERU
6 54
PUERTO RICO DOMINICAN REPUBLIC
6
LEED PROFESSIONALS BY SPECIALIZATON IN LATIN AMERICA
SANTA LUCÍA 0
258
SURINAM 0 TRINIDAD & TOBAGO
7
URUGUAY 3 VENEZUELA 3
127 70 9 LEED Green Associate
LEED AP
*Source - GBCI™: Green Building Certification Institute - Statistics October 12, 2010.
LEED AP LEED AP Building Interior Design + Design + Construction Cosntruction
3 LEED AP Operations + Mantenance
0 LEED AP Home
0 LEED AP Neighbourhood Development
COLLIERS INTERNATIONAL LATINOAMÉRICA | P.10
LATIN AMERICA Mario Rivera Market Research Director One Queen St. East, Suite 2200 Toronto, OM MSC 2Z2 Phone: (416) 777 2200 mario.rivera@colliers.com