The increasing importance of sustainability for building ownership

Purpose — This study seeks to investigate the degree to which energy efficiency is incorporated into office building refurbishment and capital expenditure with the emphasis placed on a cost-benefit analysis from the owner’s perspective.
Design/methodology/approach – In order to develop a research framework, a thorough literature review was conducted of three disciplines being construction technology, building refurbishment and property management. The study identifies differences between varying levels of capital expenditure to ensure an existing building is more energy efficient, with the emphasis placed on the cost of implementation and the potential for tenants to acknowledge the increased energy efficiency via higher rents.
Findings – Office buildings have been identified as a contributor to global warming during the construction phase, however during the building lifecycle there is a greater contribution to CO2 omissions. Whilst various building designs and construction techniques have evolved to improve energy efficiency, the focus has largely been placed on new buildings where it is easier to incorporate change and innovative approaches. However, the proportion of new buildings constructed each year is relatively small in comparison to existing building stock, which requires regular capital expenditure to maintain and attract new tenants within a competitive marketplace.
Practical implications – The increasing importance of energy efficiency affects the office market in a variety of different ways.
Originality/value – This paper identifies important links between the environment and the built environment, and the implications for office building owners.

Office building characteristics and the links with carbon emissions

Purpose – The purpose of this paper is to present research which analysed energy consumption in the Melbourne central business district (CBD) office stock and examined all buildings to identify CO2 emissions in 2005. The rationale was that, by profiling a large group of buildings, it would be possible to identify characteristics of the stock. For example, do older buildings typically emit more CO2 per square metre than newer buildings?
Design/methodology/approach – This research conducted a detailed analysis of all Melbourne CBD office stock to identify which patterns and trends emerged regarding building characteristics and carbon emissions. The study examined variables such as building size, number of employees, occupancy levels, physical characteristics and building age.
Findings – By examining all office stock and aggregating data, the results confirm that it is possible to identify general physical building characteristics and carbon emissions. This research confirmed that clear relationships existed within the Melbourne CBD office stock in terms of building size, age and the density of occupation in relation to CO2 emissions.
Originality/value – Practitioners can apply this knowledge to the professional advice they give to clients to assist in achieving increased energy efficiency in the office stock, for example in refurbishment being conscious that smaller buildings will be generally less energy-efficient than larger ones.

The relationship between sustainability and the value of office buildings

There is an increasing body of evidence to suggest that the development of sustainability in office buildings and the acceptance of these buildings in the broader property market is increasing. However a gap still remains between the value of sustainability and the value of the building from an International Valuation Standards Committee (IVSC) definition of market value. Current literature is limited in the investigation of the impact of sustainable criteria on value component when undertaking a valuation of a commercial office building. Whilst substantial advances have been made in sustainable design and construction aspects, as well as reducing implementation costs and enhancing benefits associated with sustainability, there appears to be inherent barriers in adopting sustainability in the valuation process for the property industry.

This paper examines the limited previous research into the elements of sustainable criteria that impact upon property value, and in turn should be reflected in traditional valuation methods. The immaturity of the property market for sustainable building is such that current valuation methods do not appear to have significant evidential proof of increased property value through sales or lease evidence for sustainable buildings. Furthermore, this lack of market evidence makes it inherently difficult for valuers to assess the real market value of sustainable buildings through current valuation methodology. In other words, the level of risk associated with incorporating different levels of sustainability into office buildings appears difficult to measure using a market value perspective in today’s property market. Accordingly this paper examines current research that has been undertaken to identify particular sustainable criteria that potentially affects the value of a sustainable building. For example, previous research suggests that sustainable criteria impact upon the valuation equation through rental growth, depreciation, risk premium and cash flow. This paper also examines how other studies have viewed the impact of sustainable criteria and how they are weighted within the valuation equation. The discussion provides an insight into the rapidly evolving area of sustainability and office buildings with emphasis placed on the valuation process that seeks to assess a hypothetical purchaser’s perspective of this relationship.

Office buildings and the environment : the increasing importance of ESD

The links between the built environment and sustainability issues such as fossil fuel consumption and climate change is clear. In developed countries buildings contribute around half of all carbon dioxide emissions and offer considerable scope for a significant contribution to sustainability through ecologically aware design and increased energy efficiency (BRE, 1996). The Australian commercial stock emits 12% of all greenhouse gas emissions however the commercial property market has some inherent barriers to sustainability (DSE, 2005). A substantial proportion of the stock is owned by institutional investors who are unconvinced by the need to improve their stock and pass on running costs to tenants (Callender & Key, 1997). As capital values are not greatly affected by sustainability, owners react by doing little or nothing and the effect is to limit sustainability related investment and undermine efforts to deliver sustainability in the sector.

Furthermore the efficiency of buildings declines over time and whilst energy efficiency is important to new design, the existing stock must be improved if urban built environment greenhouse gas emissions are to be reduced. Much of the property and surveying research has previously adopted an illustrative case study approach advocating the benefits of ESD and energy efficiency in existing buildings. This research adopts a radically different approach and profiles the entire office stock of a global CBD, namely Melbourne, which is seeking to become a carbon neutral city by 2020. The research also employs scenario forecasting to model future changes to the stock over a fifteen year period. This paper sets out the rationale for the research and establishes the methodological approach adopted by the research team.

Office buildings and the environment : the increasing role of facility managers

The Australian commercial stock emits 12% of all greenhouse gas emissions however the commercial property market has some inherent barriers to sustainability (DSE, 2005). A substantial proportion of the stock is owned by institutional investors who are unconvinced by the need to improve their stock and pass on running costs to tenants (Callender & Key, 1997). The links between the built environment and sustainability issues such as fossil fuel consumption and climate change is clear. In developed countries buildings contribute around half of all carbon dioxide emissions and offer considerable scope for a significant contribution to sustainability through ecologically aware design and increased energy efficiency (BRE, 1996). As capital values are not greatly affected by sustainability, owners react by doing little or nothing and the effect is to limit sustainability-related investment and undermine efforts to deliver sustainability in the sector. Facility managers are in an influential position to help address sustainability issues via an increased awareness of energy efficiency and CO2 emissions.

Even though the efficiency of buildings is primarily focused on new stock, with an existing churn replacement rate of approximately 2-3% the existing stock must be improved if urban built environment greenhouse gas emissions are to be reduced – clearly the management of existing stock must therefore contribute to substantial savings in energy use. Much of the property and surveying research has previously adopted an illustrative case study approach advocating the benefits of ESD and energy efficiency in existing buildings. This research adopts a radically different approach and profiles the entire office stock of a global CBD, namely Melbourne, which is seeking to become a carbon neutral city by 2020 (City of Melbourne, 2003). The research also employs scenario forecasting to model future changes to the stock over a fifteen year period. This paper sets out the rationale for the research and establishes the methodological approach adopted by the research team. The results provides a unique insight into the variations between different building types and grades of office buildings, which in turn will allow facility managers to gain a better understanding of where gains in energy efficiency can be made.

The role of the surveying profession in reducing carbon emissions of existing office stock in the Melbourne CBD

As professionals, surveyors and property professionals are in the front line and have a moral and ethical duty to take a lead when advising clients appropriately on measures to reduce greenhouse gas emissions from their buildings. As such, surveying professionals and the profession must increase their knowledge base and enhance their skills in respect of built environment sustainability. This research conducted a detailed analysis of energy efficiency in the Melbourne CBD office stock and examined all office buildings to identify what was likely to happen between 2005 and 2020 in respect of carbon emissions. The research profiled a business-as-usual or no change approach, a minor change approach, an intermediate approach, and a major change approach. The study examined variables such as building size, number of employees, occupancy levels, visual appearance and age. After modelling all CBD office buildings, it was recommended that an intermediate change scenario should be adopted. This course of action incorporates a transition period and includes increasing ‘green power’, increasing the number of employees per buildings, as well as reducing electricity and gas consumption. It was concluded that the surveying profession should adopt a proactive stance towards office buildings and climate change, which is currently being stifled by barriers such as a lack of education and perception concerning the long-term benefits of energy efficient office buildings. To date there has been much debate and promotion of policies to encourage the uptake of sustainability practices within the property sector; however, this research concludes that action is needed if targets are to be met.

Energy analysis of the construction of office buildings /by Graham J. Treloar

Buildings have a significant impact on the environment due to the energy required for the manufacture of construction materials. The method of assessing the energy embodied in a product is known as energy analysis. Detailed office building embodied energy case studies are very rare. However, there is evidence to suggest that the energy requirements for the construction phase of commercial buildings, including the energy embodied in materials, is a significant component of the life cycle energy requirements. This thesis sets out to examine the current state of energy analysis, determine the national average energy intensities < i.e. embodied energy rates < for building materials and assess the significance of using national average energy intensities for the energy analysis of a case study office building. Likely ranges of variation in the building material embodied energy rates from the national averages are estimated and the resulting distribution for total embodied energy in the case study building simulated. Strategies for improving the energy analysis methods and data are suggested. Detailed energy analysis is shown to be a useful indicative method of quantifying the energy required for the construction of buildings.

Invisible labour : home–school relations and the front office

When school front offices are mentioned in research on schools and their relations with the community, it is often to describe how parents/carers and the public are treated officiously and/or inappropriately. In professional development materials, schools are urged to improve communication, and occasionally directed to consider the practices of the front office staff. Yet when schools send out information to parents/carers, the school office is usually the place to which all queries are directed. However, there is almost no detailed research that looks at what actually happens in this place. In this paper we draw on a small-scale commissioned research project which began to fill this gap. In seeking to reread our data and push further on analysis, we have come to realize that those who work in school front offices are women whose physical and emotional labour is not only rendered largely invisible in a wide range of literatures relating to home-school relations but is also inadequately recognized through recruitment practices, professional development and remuneration. We suggest that there needs to be further research into the high energy, multitasking, nurturing work that goes on in school front offices.

Energy and thermal comfort in a rammed earth office building

An analysis was made of the Charles Sturt University Academic Office building at Thurgoona from a thermal comfort and energy viewpoint. It was found that the offices did not meet low energy criteria and some were uncomfortable for 30% to 85% of occupied hours.

The psychological and physical needs of workers impacting office design

Office design needs to be based on the needs of the most important producers of profit and value for any organisation – the workforce. Drivers affecting office design have been economics – space being often viewed as a cost-centre rather than a business enabler; and more recently, ideas that office design can impact organisational culture – resulting in the adoption of more collaborative working spaces in an attempt to force interaction. What is not always considered are the actual working styles
of the individuals and their motivations nor the requirements of the work itself. There is a need to profile not only the workforce, but also the work carried out. Recent research into space requirements for work is reviewed and reported with recommendations for better consideration of the psychological and physical needs of workers for office design.

Balancing comfort expectations and greenhouse gas emissions, thermal comfort in office buildings in a changing climate

According to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), the construction sector has the greatest potential for climate change mitigation. This work investigates the potential for climate change mitigation in naturally ventilated and mixed mode office buildings, by evaluating the range of influence of building design and occupants on greenhouse gas emissions as well as thermal and visual comfort.

Thermal comfort is evaluated according to the EN 15251 adaptive thermal comfort model, visual comfort is based on daylight autonomy and view. Parametric studies have been conducted based on building simulation for the climate of Athens, Greece. Input data are based on a literature review, and on results from a field study conducted among office occupants and architects in Athens.

The results show that the influence of occupants on greenhouse gas emissions is larger than the influence of building design. Energy saving office equipment, as well as active use of building controls for shading and lighting by occupants are crucial parameters regarding the reduction of CO2 emissions. In mixed mode buildings, the coefficient of performance of the cooling system is an important parameter as well. Regarding thermal and visual comfort, the influence of building design is predominant. A green building, well protected against heat from the sun and able to balance solar and internal heat gains, provides higher comfort levels and is less affected by the influence of occupants. In mixed mode buildings, building design is the predominant influence on the magnitude of cooling loads. A hot summer including heat waves can significantly reduce thermal comfort and increase the resulting greenhouse gas emissions. Green buildings are least affected by these influences.

The EN 15251 adaptive thermal comfort model provides a thermal comfort evaluation method valid throughout Europe. However, for the Mediterranean climate of Athens, Greece, most of the configurations investigated within this study do not meet the requirements according to this model. EN 15251 refers to an adaptive thermal comfort model for naturally ventilated and to a static model for mechanically ventilated buildings. For mixed mode buildings, the static model is recommended, but literature indicates that occupants in those buildings might be more tolerant towards higher temperatures. The hypothetical application of the EN 15251 adaptive thermal comfort model in mixed mode offices, as investigated in this study, shows potential for greenhouse gas emission savings. However, this influence is small compared to that of building design and occupants. Conclusions are drawn regarding the categorisation and exceeding criteria according to EN 15251 adaptive thermal comfort model for offices in a Mediterranean climate.

The results of this work show, that not only green buildings, but also green occupants can significantly contribute to the mitigation of the climate change. Mechanisms of the real estate market as well as the lifestyle of occupants are important influences in this context. Sustainability therefore refers to finding the right balance between occupant’s comfort expectations and resulting greenhouse gas emissions for a specific building, rather than optimisation of single parameters

The business case for sustainable office buildings

The market for sustainable buildings has rapidly gained momentum in the design and construction phases, however it appears that development and investment in these buildings by the private sector is limited. This is further complicated by the limited information available confirming the financial viability of sustainable buildings, with relatively little research conducted into the relationship between sustainability and the market value of commercial buildings. Currently the demand for sustainable buildings in Australia and New Zealand is being encouraged through government legislation and policy, where investment by the private sector has been relatively slow to develop due to the lack of evidential proof of the economic viability of sustainable buildings. Clearly if the progress and uptake of sustainable buildings is to develop within the property market, it is essential that the relationship between market value and sustainability should be understood in order to fully inform the investment industry.