Green retrofits are on the same pace as new construction was five years ago. The general thought was that it was too expensive to go green, but after five years of research and experience with new construction, green building construction prices have proven to be a very comparable. Benefits are wide spread with increased energy and water efficiency, better indoor air quality, less demand of
virgin resources, lower operating cost, better brand equity and more.

Five years later the same argument for why we should go green for new construction is finally going main stream with our existing stock. Building owners are looking beyond the cost premium for green and extending their definition of value added to items such as productivity increases, better employee comfort, health and retention, and higher resale value. All showing that it is actually cheaper to go green.

A survey from Deloitte’s, released on July 29, 2008, The Dollars and sense of Green Retrofits, states that “Existing commercial real estate that does not undergo a ‘green retrofit’ will relinquish market leadership within three years in terms of higher operating costs, lower productivity, declining attractiveness to workers and negative brand image.” Now many progressive companies are insisting that there buildings take part in this sustainability movement because they realize it is better for their business’s public perception and their bottom line.

A great example of a successful green retrofit is the Adobe buildings which cost them $1.4 million. Since the retrofit Adobe’s electricity consumption has dropped by 35%, natural gas by 41%, domestic potable water consumption by 22%, and landscaping irrigation water by 76%. The green retrofit saves Adobe $1.2 million a year in operating cost. Adobe also received grants and equipment purchase rebates from the city, state, and local utilities for the newly installed energy-conserving technologies were $389,000 making their return on investment less than 10 months.

The time has come that if you want to keep your class A status you better make some green improvements to your building. Tenants are demanding that they are in healthier building and building owners are seeing a financial benefit so it is clear that in order to be perceived as the top of the existing building crop you must do a green retrofit soon.