The Role of Windows: Windows in a commercial building serve many purposes. They regulate the types and amount of light that penetrate the buildings interior, allow for views, and can set the general mood inside the building's space. Windows also play a significant role in the operations costs of a building.
Energy Lost: Many windows in older buildings, such as the Hogan Building, are single-pane or lack tinting or coating. This decreases a buildings operational efficiency and leads to a tremendous loss of buiding energy. In the Winter, building heat escapes these windows to the outside environment and forces the building's central heating system to run harder and longer to attain a comfortable, acceptable interior temperature. The reverse is true in the Summer months.
Replacement Costs: Replacing all windows in a building can be very expensive. The exact costs vary with the method of replacement and quality of the new windows. According to amberix.com, a rough estimate for a typical new, highly insulated, energy efficient, 12 square foot window is approximately $200. Energetechs.com offers window replacement estimats that range from $38/sf to $133/sf. On the second and third floor of the Hogan Building there are 96 windows. Assuming a $200 per window replacement cost, it will cost approximately $20,000 to replace all windows on these two floors. Additional costs would be incurred by replacing the aluminum store front windows on two sides of the first floor of Hogan Building. Given the square footage of glass in the storefront windows on the first floor of the Hogan Building, a conservative estimate for the replacement of all first floor windows would br $20,000. Accordingly, the minimum estimate to replace all windows at the Hogan Building is $40,000.
Benefits: The US Green Building Counsel, the EPA and private industry studies suggest that installation of energy efficient windows can reduce building energy expenditures by 25% - 33%. In addition to the reduced energy expenditures, building maintenance costs will also likely be reduced. Due to these cost savings that will be realized by tenants on their utility costs under NNN leases, they will likely be willing to pay a "rent premium," for space in the Hogan Building. The "rent premium" will be a portion of the savings realized by the tenant for energy and utility costs. After paying this portion to the owner, the tenant will still recognize a savings over what their costs would be in a building that lacked these sustainable features. Replacement of the windows combined with the incorporation of other sustainable elements will allow the Hogan Building to command an additional $1/sf/yr on the rents in each space in the building's three above ground floors. This would equate to an increase in annual rents on the 15,600 sf of rentable space on the first 3 floors of approximately 15,600 and year. Therefore, the "payback period" on this investment, assuming the increased rent rate, would be approximately 10 years.
Benefits of a sustainable building also extend beyond the financial realm. Occupying a "green building" is important to many young professionals who desire an urban lifestyle. Having "green aspects" incorporated into the Hogan Building will make it more attractive to this target demograhic. The general public will also receive the benefit of the Hogan Building's lowered emissions and reduction in carbon footprint.
No comments:
Post a Comment