GREENING HOUSTON’SENERGY CORRIDOR

energy corridor projects and statistics

BUILDING ENERGY SAVINGS WATER SAVINGS

11,000 Equity Drive 12% 30%

Beltway 8 Corporate Center IV 19% 40%

DNA Westway I 21% 40%

Granite Westchase II 17% 40%

Eldridge Oaks 22% 40%

GE Oil and Gas 15% 40%

BP Helios Plaza 30% 66%

NATCO 17% 80%

greening houston’s energy corridorBY: BRIAN MALARKEY, AIA, I IDA, LEED® AP

“In the future, you will not find Shell in a non-green building” said Jeri Ballard, manager of corporate real estate for

Shell Oil Company, to a packed audience at a June 2007 Greater Houston Partnership luncheon. Green building is being

taken very seriously by the energy industry, but why? Aside from its recent surge in popularity, green building not only

makes environmental sense, but business sense as well.

human resources

Ms. Ballard also offered some very interesting information coming from their human resources department. Potential

new-hires, mostly recent college graduates, were asking if they were going to be working in a LEED® certified building.

Their HR Department was not familiar with green buildings, much less the LEED certification program. After all, what

would green building have to do with human resources?

Having become the standard in the industry, the LEED

(Leadership in Energy and Environmental Design) green

building rating system measures environmental

performance as it relates to a project’s site, energy use,

water use, material use, and indoor environmental quality.

In general, LEED certified buildings differ from their

traditional counterparts by providing more natural light

and views, better indoor air quality, recycling programs,

alternative transportation programs, and an overall

healthier work environment — all very attractive factors

to both employer and employee. “The new generation

entering the workplace and the general public, for that

matter, have become highly sensitized to these issues

and want to engage their companies on this level,” says

Anita Hayes of Horizon Wind Energy, another energy

company that has become keenly aware of the current

green zeitgeist that has taken over the public.

marketing

Let’s face it — green is hot right now. Corporate Social

Responsibility, or CSR programs, are quickly becoming

as common as the ubiquitous company mission

statement. In brief, Wikipedia defines Corporate Social

Responsibility as “a concept whereby organizations

consider the interests of society by taking responsibility

for the impact of their activities on customers, suppliers,

employees, shareholders, communities and other

stakeholders, as well as the environment.” Within the

commercial building industry, the environment is a high

priority of CSR programs.

Most companies want to be (or at least appear to

be) environmentally conscious. The LEED program

becomes a concrete way to signal a commitment to

the environment when making facility decisions.

2 greening houston’s energy corridor

Often what begins as a marketing decision to “go

green” turns into a sound financial decision when taking

into account the lower operating costs, employee

health and well-being benefits, and associated higher

productivity realized from building green.

health and well-being

Healthy, happy employees perform better and are more

apt to come to work every day. From a building

standpoint, good air and light quality are key in positively

affecting employee performance. Countless studies

indicate improvements to health and performance

when air and light are enhanced. In a 2000 study,

Lawrence Berkeley Labs found that simple improvements

to indoor air quality significantly reduced symptoms that

contribute to absenteeism such as allergies, asthma, and

respiratory illness.

Other studies show performance improvements for

individuals who have access to daylight and views.

Specifically, children’s test scores show increases up to

25%. Wal-Mart found sales in stores with skylights

increased by 40% over those without. Call center workers

process calls 6% - 12% faster and patient stays in hospitals

are reduced when given a view. White collar performance

is more elusive; however, the related research is

clear. Daylight and views increase performance and

well-being. All of this is critically important when

considering that companies spend four and a half times

more for their employees than any other expense. Just

a small increase in productivity dramatically affects the

bottom line.

a better bottom line

Saving resources saves money. It’s that simple. According

to the New Buildings Institute March 2008 report, the

average LEED building is 25% - 30% more energy efficient

than the national average. Typical water savings is

30% - 50%. According to the McGraw-Hill 2006 Smart

Market Report, green buildings are 7.5% more valuable,

lease more quickly, and have 3.5% higher occupancy

rates than standard buildings. Some of the greatest

advantages, however, are the health and well-being

benefits appreciated by employees.

why houston?

Houston is clearly the energy capital of the United

States, but soon it may also be the energy conservation

capital. According to a report released in January of

2008 by the Burnham-Moores Center for Real Estate at

the University of San Diego, Houston ranks second only

to Los Angeles in the number of energy-efficient, green

buildings. Based on information provided by CoStar, the

report recorded the square footage of LEED and Energy

Star-rated buildings. Houston’s 21.1 million square feet

comes very close to Los Angeles’s 26.2 million square

feet, and with the current building boom going on here,

Houston could eclipse Los Angeles within the year.

Houston currently has 15 LEED certified projects and

145 that are LEED registered, meaning those that are

going through the LEED process. The number of projects

seeking LEED certification in Houston represents

approximately 70% of all commercial construction in

the city. A look at the energy corridor alone reveals that

greening houston’s energy corridor 3

Buildings alone account for 12% of

water use, 39% of CO2 emissions, 65%

waste output, and 71% energy use.

4 greening houston’s energy corridor

of the 27 projects that are under construction, 25 are seeking LEED certification. Based on square footage, that is 94%

of all construction in the energy corridor. Houston’s energy corridor just might be the largest concentration of LEED and

green buildings in the country.

case in point

In addition to the LEED projects undertaken by energy leaders such as Shell, BP, and ConocoPhilips, there is a surge

in speculative office buildings in the energy corridor seeking LEED certification under the U.S. Green Building Council’s

Core and Shell program. As a complement to that, many companies leasing space are using the LEED for Commercial

Interiors program for their build-outs. A perfect example is the DNA Westway I project located off Beltway 8 and Clay

Road. This 300,000-sf project is LEED Silver Certified (for Core and Shell) and their major tenant, NATCO, an energy

service company, is seeking LEED Silver for their interior space. This scenario is becoming more common as the energy

sector is seeking green buildings to move into and green spaces to build out.

Whether your company’s motivation is marketing, the bottom line, or employee health and well-being, green building

makes good business sense for the energy sector and good sense for Houston.

Brian Malarkey is Director of Kirksey EcoServicesSM, the green consulting arm of Kirksey, a Houston sustainable architecture firm

who has designed 7 of Houston’s LEED certified buildings and whoseportfolio contains more than 20 million square feet of LEED projects.

Contact him at brianm@kirksey.com.

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