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Article
Publication date: 1 February 1993

Bill Bordass

Based on a presentation to the Cambridge University Programme forIndustry′s short course on environmental management in buildings,outlines things which can go wrong and how to…

Abstract

Based on a presentation to the Cambridge University Programme for Industry′s short course on environmental management in buildings, outlines things which can go wrong and how to correct them. Looks also at the importance of energy and its consumption and shows how energyefficient buildings can be. Stresses that good design, execution, management and the right technology are key ingredients in achieving energyefficient office buildings.

Details

Facilities, vol. 11 no. 2
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 9 September 2014

Torill Meistad

This is an analysis of modern office buildings with high energy efficiency. The purpose of this paper is to focus on how such buildings affects usability for the organizations…

Abstract

Purpose

This is an analysis of modern office buildings with high energy efficiency. The purpose of this paper is to focus on how such buildings affects usability for the organizations occupying the buildings.

Design/methodology/approach

The analysis combine results from studies of two case projects with a literature review. Case studies include qualitative interviews with key informants, internal post-occupancy evaluations and annual reports from the user organizations. The two buildings are Norwegian pioneers regarding energy efficiency.

Findings

The new buildings provide a high degree of usability for the user organizations, including user satisfaction, efficiency and effectiveness. The case projects illustrate the potential in combining improvements for energy efficiency and the usability of buildings. There are synergistic effects in a mutual process of development for the buildings and organizations based upon strategic business goals. Management of the process is crucial in order to succeed.

Research limitations/implications

The study applies the approach of usability to an analysis of energy efficient buildings. Two case projects exemplify potentials and challenges.

Practical implications

Office buildings can be developed to a high degree of energy efficiency by considering the many aspects of usability for the user organizations. Integrating constructing projects into organizational development processes is crucial for the result.

Originality/value

This study contributes to the emerging field, analyzing effects on usability for the organizations occupying energy efficient office buildings. The study also adds to the young field of analyzing the integration of the development of buildings into processes of organizational development by enlightening the potential regarding buildings with high energy ambitions.

Details

Smart and Sustainable Built Environment, vol. 3 no. 2
Type: Research Article
ISSN: 2046-6099

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Article
Publication date: 1 July 2014

Jeremy Gabe and Michael Rehm

– Using a unique data set, the purpose of this paper is to test the hypothesis that tenants pay increased accommodation costs for space in energy efficient office property.

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Abstract

Purpose

Using a unique data set, the purpose of this paper is to test the hypothesis that tenants pay increased accommodation costs for space in energy efficient office property.

Design/methodology/approach

The authors obtain lease contracts for office space in central Sydney, Australia. Empirical data on annual gross face rent and contract terms from each lease are combined with building characteristics and measured energy performance at the time of lease. Hedonic regression isolates the effect of energy performance on gross face rent.

Findings

No significant price differentials emerged as a function of energy performance, leading to a conclusion that tenants are not willing to pay for energy efficiency. Six factors – tenancy floor level, submarket location, proximity to transit, market fixed effects, building quality specification and, surprisingly, outgoings liability – consistently explain over 85 per cent of gross face rent prices in Sydney.

Research limitations/implications

Rent premiums from an asset owner's perspective could emerge as a result of occupancy premiums, market timing or agent bias combined with statistically insignificant rental price differentials.

Practical implications

Tenants are likely indifferent to energy costs because the paper demonstrates that energy efficiency lacks financial salience and legal obligation in Sydney. This means that split incentives between owner and tenant are not a substantial barrier to energy efficiency investment in this market.

Originality/value

This study is the first to thoroughly examine energy efficiency rent price premiums at the tenancy scale in response to disclosure of measured performance. It also presents evidence against the common assumption that rent premiums at the asset scale reflect tenant willingness to pay for energy efficiency.

Details

Journal of Property Investment & Finance, vol. 32 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 4 July 2016

Billie Ann Brotman

The purpose of this paper is to exam the financial impact on the owner/lessor who is considering a partial energy upgrade to an existing medical office building. The owner who…

Abstract

Purpose

The purpose of this paper is to exam the financial impact on the owner/lessor who is considering a partial energy upgrade to an existing medical office building. The owner who leases the building using a triple net lease does the upgrade prior to leasing the building, with the expectation of earning higher rents. How much should the owner who leases the property spend for a given rent per square foot increase?

Design/methodology/approach

The empirical study highlights the impact of key financial variables on the dependent variable medical office construction spending put in place in the USA. The independent variables prime interest rate, cost of natural gas per therm and electricity cost per KWH, resale building prices are significant variables when predicting medical office construction spending. A case study using a cost-benefit model is developed. It inputs corporate income tax rates, incorporates a debt service coverage ratio, prime interest rate, analyzes investment tax credit (ITC) and rebate scenarios and varies the level of rental income and energy savings. The case study results provide insight into which factors are enabling higher net construction spending when considering a green energy retrofit project. Both the regression model and the case study model focussed on the owner of a building who rents medical office space to tenants using a triple net lease. The owner/lessor paradigm analyzes revenue enhancements, the tax implications of having these savings and benefits associated with borrowing when financing the green retrofit. The availability of low cost borrowing, increases in the ITC percent and rebates and increases in rent per square foot have an impact on potential energy upgrade spending.

Findings

The empirical model finds the independent variables to be significant. Utility cost, resale value of office buildings, the prime interest rate, business bankruptcy court filings and unemployment rate fluctuations adequately explain movements in medical office building spending for the years 2000 through 2015 yielding a R2 of 73.8 percent. The feasibility case study indicates that the energy saving levels and ITCs not income tax rates are the primary drivers for a partial energy retrofit.

Research limitations/implications

Market incentives are a function of the cost of energy. If the cost of energy drops, then the profit incentive to conserve energy becomes less important. The role of tax credits, rebates, property tax reductions and government directives, then become primary incentives for installing energy upgrades. The owner of an empty building assumes all of the operating costs normally paid by a tenant under a triple net lease. This possibility was not included in the replacement cost-benefit model used in this paper.

Practical implications

The feasibility of doing an energy upgrade to an existing building requires that a cost-benefit analysis be undertaken. The independent variables that are significant when doing a regression model or proxies for these variables are incorporated into a present value model. The results in Table V can be used as an initial template for determining how much to spend per square foot when doing an energy upgrade. The square foot amounts can be applied to different size office buildings. The corporate income tax rate or a personal income tax rate has minimal impact on energy construction upgrade spending.

Social implications

More energy efficient office buildings reduce the amount of greenhouse gases released into the atmosphere. Energy efficient buildings also conserve on scarce fuel reserves. ITCs and rebates limit the role of government in directing decisions to do energy upgrades. The market mechanism to some degree can help encourage energy conservation through asset upgrades.

Originality/value

The paper incorporates an empirical model which is a form of technical analysis to examine independent variables that explain medical office building spending with a case study structured on expected revenues and costs which takes a fundamental approach to understanding the relationship between the dependent variable and its independent variables. The regression model combines factors that impact the demand for energy efficient medical buildings from an owner/lessor perspective which includes resale values of existing buildings, business bankruptcy filings and unemployment rates. Supply independent variables include the prime interest rate and electricity per KWH and natural gas per therm. The regression model found these variables to be significant. The case study uses the same independent variables or close proxy variables to determine the maximum financially feasible per square foot spending that can be invested in energy upgrades.

Details

Journal of Property Investment & Finance, vol. 34 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 December 2005

Richard G. Reed and Sara J. Wilkinson

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…

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Abstract

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.

Details

Journal of Corporate Real Estate, vol. 7 no. 4
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 22 August 2023

Xian Yun Tan, Norhayati Mahyuddin, Syahrul Nizam Kamaruzzaman, Norhayati Mat Wajid and Abdul Murad Zainal Abidin

Commercial buildings, which include office buildings, are one of the three major energy-consuming sectors, alongside industrial and transportation sectors. The vast increase in…

Abstract

Purpose

Commercial buildings, which include office buildings, are one of the three major energy-consuming sectors, alongside industrial and transportation sectors. The vast increase in the number of buildings is a positive sign of the rapid development of Malaysia. However, most Malaysian government office buildings tend to consume energy inefficiently due to lack of energy optimization. Most of the previous studies focused on the performance of green buildings in fulfilling the green development guidelines. As such, it is essential to study the energy performance of existing government office buildings that were constructed before most energy-efficient standards were implemented to mitigate energy wastage due to the lack of energy optimization. This study aims to analyse the energy performance of existing non-green Malaysian government office buildings and the factors that influence building energy consumption, as well as to evaluate the efficacy of the existing energy conservation measures.

Design/methodology/approach

This study was conducted by a literature review and case study. The chosen buildings are six government office building blocks located in Kuala Lumpur, the capital city of Malaysia. In this study, a literature review has been conducted on the common factors affecting energy consumption in office buildings. The energy consumption data of the buildings were collected to calculate the building energy intensity (BEI). The BEI was compared to the MS1525:2019 and GBI benchmarks to evaluate energy performance. SketchUp software was utilized to illustrate the solar radiation and sun path diagram of the case study buildings. Finally, recommendations were derived for retrofit strategies based on non-design factors and passive design factors.

Findings

In typical government office buildings, the air-conditioning system consumed the most energy at 65.5%, followed by lighting system at 22.6%, and the remaining 11.9% was contributed by office appliances. The energy performance of the case study buildings is considered as satisfactory as the BEI did not exceed the MS1525:2019 benchmark of 200 kWh/m2/year. The E Block recorded the highest BEI of 183.12 kWh/m2/year in 2020 due to its north-east orientation which is exposed to the most solar radiation. Besides, E Block consists of rooms that can accommodate large number of occupants. As such, non-design factors which include higher occupancy rate and higher cooling demand due to high outdoor temperature leads to higher energy consumption. By considering passive design features such as building orientation and building envelope thermal properties, energy consumption can be reduced significantly.

Originality/value

This study provided a comprehensive insight into the energy performance of Malaysian government office buildings, which were constructed before the energy-efficient standards being introduced. By calculating the BEI of six government office buildings, it is found that the energy performance of the case study buildings fulfils the MS1525 benchmark, and that all their BEIs are below 200 kWh/m2/year. Malaysia's hot and humid climate significantly affects a building's cooling load, and it is found the air-conditioning system is the major energy consumer of Malaysian government office buildings. This study discusses the efficacy of the energy-saving measures implemented in the case study buildings to optimize energy consumption. Recommendations were derived based on the non-design factors and passive design factors that affected the energy consumption of the case study building. It is envisioned that this study can provide practical strategies for retrofit interventions to reduce energy consumption in Malaysian office buildings as well as for office buildings that are in a similar climate.

Details

Open House International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0168-2601

Keywords

Article
Publication date: 2 November 2015

Markus Surmann, Wolfgang Brunauer and Sven Bienert

– The paper aims to estimate the effect of energy efficiency on the Market Value of office buildings and consider whether this effect increases over time.

Abstract

Purpose

The paper aims to estimate the effect of energy efficiency on the Market Value of office buildings and consider whether this effect increases over time.

Design/methodology/approach

The authors analyze a dataset of office building valuations from 2009 to 2011, provided by the German Investment Property Database. The authors use hedonic regression models to determine the effect of energy efficiency and energy consumption on Market Values. Using generalized additive models (GAM) for modeling nonlinear covariate effects, the authors control for further building characteristics and location. Due to the small sample size, the authors introduce an innovative econometric approach that mitigates this problem.

Findings

Mainly due to the small sample size, and in spite of the newly developed econometric methodology, the authors do not find clear evidence of the relationship between energy efficiency and the Market Value. However, the study nonetheless provides interesting insights into the composition of office building Market Values in Germany.

Originality/value

In addition to the empirical results for the German office market, the main contribution of this paper lies in the econometric methodology. Beside the application of cutting-edge statistical techniques, the authors develop a method for handling datasets, for which the variable of interest is rarely observed, leveraging on the total available data. Thus, the methodology offers promising prospects for future research in similar settings.

Details

Journal of European Real Estate Research, vol. 8 no. 3
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 22 June 2012

Eckhart Hertzsch, Christopher Heywood and Mirek Piechowski

The purpose of this paper is to present a methodology to improve decision making about investments that reduce buildings' energy consumption.

Abstract

Purpose

The purpose of this paper is to present a methodology to improve decision making about investments that reduce buildings' energy consumption.

Design/methodology/approach

A three‐stage methodology was developed and tested to analyse an existing Australian office building's energy use, its energy rating, and its life cycle investment. In total, seven cases of sets of improvements were modelled for energy performance. Their investment value was evaluated using a life cycle‐based analysis across several investment options.

Findings

A holistic approach to investment shows that the most effective sustainable refurbishments need not be the most expensive. Optimised investment can take advantage of the timing of both re‐investment in component renewal and efficiency gains from the refurbishment. Furthermore, relatively small changes in income can offset capital expenditure for refurbishments and protect against obsolescence.

Originality/value

Much work on sustainable refurbishments rarely considers the investment basis, across a life cycle, of that expenditure, generally seeing them as a cost and rarely considers the optimal time for that expenditure in the asset life cycle. This paper addresses both concerns.

Details

International Journal of Energy Sector Management, vol. 6 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 1 July 2014

Graeme Newell, John MacFarlane and Roger Walker

Green office buildings have recently taken on increased significance in institutional property portfolios in Australia and globally. The key issue from an institutional investor…

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Abstract

Purpose

Green office buildings have recently taken on increased significance in institutional property portfolios in Australia and globally. The key issue from an institutional investor perspective is the assessment of whether green office buildings add value. Using an extensive portfolio of green office buildings, the purpose of this paper is to empirically assess the level of energy rating premiums in the property performance of green office buildings in Australia.

Design/methodology/approach

Using a portfolio of over 200 green office buildings in Australia benchmarked against a comparable portfolio of non-green office buildings, the level of energy rating premiums in the property performance of green office buildings in Australia is empirically evaluated. Hedonic regression analysis is used to account for differences between specific office buildings and to explicitly identify the “pure” green effect in identifying the level of energy rating premiums in several commercial property performance characteristics (e.g. office value, rent).

Findings

The empirical results show the added-value premium of the 5-star National Australian Built Environment Rating Scheme (NABERS) energy rating scheme and the Green Star scheme in the property performance of green office buildings in Australia, including office values and rents. Energy rating premiums for green office buildings are evident at the top energy ratings and energy rating discounts at the lower energy ratings. The added-value “top-end” premium of the 5-star vs 4-star NABERS energy rating category is clearly identified for the various property performance parameters, including office values and rents.

Practical implications

This paper empirically determines the presence of energy rating premiums at the top energy ratings in the performance of green office buildings, as well as energy rating discounts at the lower energy ratings. This clearly highlights the added value dimension of energy efficiency in green office buildings and the need for the major office property investors to prioritise the highest energy rating to facilitate additional property performance premiums. This will also see green office buildings become the norm as the market benchmark rather than non-green office buildings.

Social implications

This paper highlights energy performance premiums for green office buildings. This fits into the context of sustainability in the property industry and the broader aspects of corporate social responsibility in the property industry.

Originality/value

This paper is the first published property research analysis on the detailed determination of energy rating premiums across the energy rating spectrum for green office buildings in Australia. Given the increased focus on energy efficiency and green office buildings, this research enables empirically validated and practical property investment decisions by office property investors regarding the importance of energy efficiency and green office buildings, and the priority to achieve the highest energy rating to maximise property performance premiums in office values and rents.

Details

Journal of Property Investment & Finance, vol. 32 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 9 August 2021

Christian Koranteng, Barbara Simons, Kwabena Abrokwa Gyimah and Jimmy Nkrumah

Accra, the capital city of Ghana, is seeing high-rise buildings springing up with extensive glazing. Given the challenges of the country concerning energy provision, guaranteeing…

Abstract

Purpose

Accra, the capital city of Ghana, is seeing high-rise buildings springing up with extensive glazing. Given the challenges of the country concerning energy provision, guaranteeing comfort in buildings and sustainability aspects, this trend is questionable and worrying in this pandemic era. Therefore, the purpose of this paper is to evaluate how glazing types and their properties could reduce cooling loads and provide comfort by following the recommendations set by the Ghana Green Building Council (GHGBC) after the Green Star of South Africa, as well as other references found in literature.

Design/methodology/approach

Indoor thermal conditions were monitored to evaluate prevailing indoor conditions. Using a simulation application, various options were probed based on the Green recommendations and others found in literature to improve thermal comfort within the structure. Moreover, a questionnaire survey with observation was undertaken with 250 architects to understand the basis of decisions taken when specifying glazing for buildings.

Findings

The results indicate that cooling loads increased by 2% when the GHGBC after the Green Star of South Africa recommendations were applied. However, the use of the recommendations of previous research conducted in Ghana could reduce cooling loads by 38% to save energy. Suggested strategies of air velocity up to 1.0 m/s as well as thermal mass, comfort ventilation, conventional dehumidification and air-conditioning were found to be means to improve indoor comfort. Furthermore, the architects revealed that around 40% of multi-storey buildings are 70%–100% glazed. Of all the buildings, 62.4% was found to be glazed with single pane windows, making them use so much energy in cooling. Additionally, the survey underlined the client’s preference, cost and functionality as the three main bases for the choice of glazing in multi-storey office buildings.

Originality/value

A significant contribution of this study to the body of knowledge is the provision of empirical evidence to support the fact that due to climate difference, each country needs to undertake more experimental research works to be able to come out with standards that work. Thus, the GHGBC after the Green Star of South Africa does not necessarily work within the climatic context of Ghana.

Details

Journal of Engineering, Design and Technology , vol. 21 no. 1
Type: Research Article
ISSN: 1726-0531

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1 – 10 of over 10000