Reduced Operating Costs

With the real price of oil likely to stay above $80 to $100 per barrel (in today's dollars) for the forseeable future,* natural gas prices at near-record levels, and peak-period (typically summer air-conditioning times) electricity prices rising steadily in many metropolitan areas, energy-efficient buildings make good business sense. Even in commercial "triple-net" leases (the most common type) in which the tenant pays all operating costs, landlords want to offer tenants the most economical space for their money (not doing so amounts to a hidden tax on the renter). For small added investments in capital cost, green buildings offer lower operating costs for years to come. Many green buildings are designed to use 30 to 50 percent less energy than current codes require; some buildings achieve even higher efficiency levels. Translated to an operating cost of $3.00 per square foot for electricity (the most common source of energy for office and commercial buildings), this level of savings could reduce utility

*U.S. Green Building Council [online], http://leedcasestudies.usgbc.org/overview.cfm?ProjectID=278, accessed April 2008.

♦U.S. Energy Information Administration [online]. For the November 2006 forecast, see www.eia.doe.gov/oiaf/ aeo/key.html, accessed March 6, 2007.

operating costs by $0.90 to $1.50 per square foot per year. Often these savings are achieved for an investment of just $1.00 to $3.00 per square foot. With building costs reaching $150 to $300 per square foot, many developers, institutions, and building owners consider it a wise business decision to invest 1 to 2 percent of capital cost to secure long-term savings, particularly with a payback of less than 3 years. In an 80,000-square-foot building, this level of owner's savings translates into $72,000 to $120,000 per year, year after year.

Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

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