Colorado Real Estate Journal - October 7, 2015

Green building sector outpacing overall construction growth

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The green building sector is outpacing overall construction growth in the U.S. and will account for more than 2.3 million American jobs this year, according to a new U.S. Green Building Council study from Booz Allen Hamilton.

The 2015 Green Building Economic Impact Study, released by USGBC and prepared by Booz Allen, finds the green building industry contributes more than $134.3 billion in labor income to working Americans. The study also found that green construction’s growth rate is rapidly outpacing that of conventional construction and will continue to rise.

By 2018, the study finds, green construction will account for more than 3.3 million U.S. jobs – more than one-third of the entire U.S. construction sector – and generate $190.3 billion in labor earnings. The industry’s direct contribution to U.S. gross domestic product also is expected to reach $303.5 billion from 2015 to 2018.

“Green building is playing a massive role in the U.S. construction sector, the clean and efficient-energy sector and the U.S. economy as a whole,” said Rick Fedrizzi, CEO and founding chair, USGBC. “More than 2.3 million U.S. workers are taking home $134 billion annually in large part because of green building programs like LEED. Demand for green building will only continue to grow as individuals, businesses and institutions continue to prioritize sustainable approaches to the design, construction and operations of our built environment.”

The new USGBC analysis also explores the multifaceted economic contribution of green construction to the U.S. economy and individual states, quantifying the economic impact of green building and LEED.

In Colorado, in the next three years, it will mean $23.92 billion in labor earnings, $16.03 billion in tax revenue and 281,000 jobs from green construction.

“Our research shows that green building has created millions of jobs and contributed hundreds of billions of dollars to the U.S. economy, with the construction of LEED-certified buildings accounting for about 40 percent of green construction’s overall contribution to GDP in 2015,” said David Erne, a senior associate at Booz Allen. “This industry is certainly on the rise, and aggressive growth in the green building sector is anticipated over the next four years.”

RTD commuter rail facility earns LEED Gold

The Eagle P3 Project commuter rail maintenance facility at 5151 Fox St. in Denver’s Globeville neighborhood recently earned LEED Gold certification.

The facility will serve Colorado’s new commuter rail when the first lines open in 2016 by housing and providing maintenance to the trains to serve the expected 40,000 daily commuters.

The project is the result of a public-private partnership between RTD and the Fluor-led joint venture of Denver Transit Partners, and is the largest P3 in transit in North America.

The new building boasts skylights every 19 feet, 96 in total, accompanied by electric lighting that adjusts depending on how much sunlight is available. The lamps also comply with low mercury standards, reducing the amount of heavy metal disposal over the building’s lifetime. The efficiency of the mechanics and lighting in the facility account for a 32 percent energy savings.

To conserve water, native grasses, adaptive plants and efficient irrigation are used around the building instead of conventional landscaping, reducing water usage for irrigation by 80 percent. The building also is outfitted with water efficient plumbing fixtures for a 39 percent reduction in water usage.

“With a focus on safety, quality, reliability and sustainability, the team came together to create a state-of-the-art facility that will make both RTD and the community proud,” said Aaron Epstein, executive project director, Fluor, and CEO, Denver Transit Partners. “We are happy to partner with RTD to deliver something that will have a long-lasting impact on the community.”

“When people think about trains, they may picture dirty, inefficient transportation. But this beautiful LEED Gold facility and the accompanying commuter rails will surely change people’s minds about trains and give the younger generations a much more modern experience with public transit,” noted Patti Mason, executive director, USGBC Colorado.

Fluor is the managing partner of Denver Transit Partners, the concessionaire selected by RTD to design, build, finance, operate and maintain the new 36-mile commuter rail train in Denver. This project includes 65 miles of track installation, 13 new stations, 35 bridges, a 230,000-square-foot commuter rail maintenance facility, and will run 66 electrified commuter rail cars throughout the Denver metro region.

Mixed-use community achieves LEED Platinum

The Denver Housing Authority’s Mariposa Phase IV project recently received LEED Platinum certification.

The latest phase to the mixed use community at 10th Avenue and Osage Street will be completed by the end of the year and will include apartments, townhouses and flats, which will wind around a central retail plaza, community garden, recreation center and park.

Shaw Construction worked to achieve the Platinum status with activities such as diverting more than 75 percent of the construction from the landfill by donating, reusing and recycling materials; supporting the local community by using 30 percent of materials purchased within 500 miles of the project; enhancing the indoor air quality for workers during construction and for future occupants by using methods and procedures that reduce presence of indoor particulates, moisture damage, mold, dust and more; installing high-efficiency flow and flush fixtures resulting in a 33 percent reduction of indoor water use; and creating an on-site photovoltaic system to offset 18 percent of the building’s annual energy costs.

Westcore, American Realty receive LEED Gold

Westcore Properties, in partnership with American Realty Advisors, has received LEED Gold certification for its AECOM Center office building in Denver.

The building, which was constructed in 2001, is located at 8181 E. Tufts Ave. in the Denver Tech Center. The property was acquired by Westcore Properties in 2006, and was sold into a joint-venture partnership owned by Westcore and American Realty Advisors in 2015. After being awarded a LEED Silver certification five years ago, the Westcore Properties team began implementing building improvements to raise the bar on the building’s performance as it relates to sustainability and energy efficiency.

“Managing buildings that are good for the environment in terms of the energy and resources used is essential in today’s marketplace,” said Don Ankeny, president and chief executive officer for Westcore Properties. “We not only improved the building features and functionality to achieve the certification, but we also partnered with our building tenants and encouraged occupants to take on additional sustainability efforts.”

Improvements include optimizing energy-efficiency performance, sustainable acquisition of materials and resources, and water and plumbing efficiency enhancements.

“These energy-efficient and sustainability improvements provide tremendous long-term value for the property, its tenants and our investors,” said Kirk Helgeson, chief investment officer at American Realty Advisors. “By optimizing efficiency and bringing the property up to LEED Gold standards, we have reduced the building’s environmental impact, while also reducing costs. This project exemplifies our commitment to environmental stewardship within the greater Denver community.”

In addition to site upgrades, Westcore Properties and American surveyed tenants on the sustainable practices they use to demonstrate a buildingwide commitment to maintaining a green-friendly building.

Currently, the building is 90 percent occupied with seven tenants, including Westcore Properties’ offices.