Combines best global evidence into one definitive resource Targets the decision-makers: developers, investors and owners, and major tenants Looks specifically.

• Combines best global evidence into one definitive resource

 • Targets the decision-makers: developers,

investors and owners, and major tenants • Looks specifically at the financial bottom line  

Design and Construction Costs

Asset Value

Operating Costs

Workplace Productivity and Health

Risk Mitigation

Business benefits are received by different stakeholders at each stage of the building life cycle.

• Building green does not necessarily need to cost more.

• There is an overall trend in the reduction of design and build costs as markets mature.

• Upfront costs are often offset by a decrease in long-term life cycle costs.

To effectively reduce the construction cost ofgreen buildings:

• Adopt green strategiesand include them in thebudget from an early stage,to avoid more expensivebolt-on strategies

• Hire experienced design and construction teams

• Use an Integrated DesignProcess (IDP), from pre-designphase through to post-occupancy, where all stakeholders are engaged from the very beginning

Yarze -Target BREEAM Very Good

Dar EL Aytam School

IC School– LEED Gold

Where does the gap come from?- Inability to forget historical data – lack of awareness that costs are coming down- Showcase buildings that may have additional costly finish upgrades not related to green &- buildings featuring highly visible but non viable green tech (integrated PV, Wind, …)

How Do Green BuildingsInfluence Value?

•They attract tenants more easily (higher occupancy rates)

•command higher rents and sale prices.

•have lower operating expenses

•have lower yields

In markets where green is more mainstream, ‘brown discounts’ are emerging.

Asset ValueEffects on Sales Price

Yarze -Target BREEAM Very Good

Asset Value - Effects on Rental

Asset Value Effects onOccupancy Rates

• Green buildings can save money through reduced energy and water consumption and lower long-term operations and maintenance costs.

• Energy savings typically exceed any build cost premiums within a reasonable payback period.

Operating Cost - Energy Saving

Yarze -Target BREEAM Very Good

IC School– LEED Gold

ResidenceBatroun

Operating Cost -Overall OperationalCost Savings

(2003) based on a life cycle of 20 yearsfor 33 LEED-rated projects in the United States

• Evidence shows that green design attributes can improve occupant productivity, health and well-being.

• Investing in better indoor environments can lead to better returns on one of every company’s greatest assets - its employees.

Workplace Productivity & Health- Impacts of Indoor EnvironmentsCost Savings

• Sustainability risk factors can significantly affect rental income and the future value of real estate assets, in turn affecting their ROI

• Changing tenant preferences and investor risk screening may translate into risk of obsolescence for inefficient buildings

“Facts from GBC Australia:Year Bdgs Ceritfied Bdgs Registered Green Cost Premium2006 10 44 Yes2008 68 400 No”

Romilly Madew – CEO GBCA

Can we wish the same?

What do we need to do?

“Facts from Lebanon:Year Bdgs Ceritfied Bdgs Registered Green Cost Premium2012 ≈4 ≈40 Yes2014 ? ? ?

Download the Report:www.worldgbc.org/activities/business-case/ 

#GBBusinessCase

Ziad Haddad MBA, MME, BE, LEED® GAMEP / Sustainability Consultant

Board Member - [email protected]

Thank You