Friday, October 9, 2009

Sustainability Survey Results

The 2009 Sustainability Survey was made available through an email campaign to ULI members and related industry organizations. A total of 118 surveys were completed.

The majority of respondents identified themselves as consultants for horizontal development (44%). Other respondents included: local government (20%); consultants for vertical development (19%); and builders (17%).

Based on the responses from the survey the following conclusions were identified for our market area:
Ø A “sustainable” project is typically viewed as “a project that includes environmentally friendly building materials” and “energy efficiency” as the primary indicator of sustainability.

Ø More than half of respondents have implemented some kind of energy-saving or sustainable technology in a development in the past. Because the majority of the participants were not builders, the most common techniques were associated with the horizontal component of a development and included the maximization of green space and/or increased development density; pedestrian and multi-modal connectivity; and protection/restoration of natural areas/habitats.

Ø The reason to include green or sustainable technologies in a project was ranked in the following order:
1. Up-front cost savings;
2. Decreased operating costs;
3. Marketing benefits;
4. Availability of appropriate products; and
5. Stewardship and social responsibility.

Ø Approximately 37% of respondents already include the costs and benefits of green or sustainable development into their pro forma when determining their project’s development program.

Ø The number one incentive that local governments could provide that would encourage the use of a green building code was a reduction in impact fees. Increased density or floor area ratio bonuses and tax incentives also received high ranking. The least important incentives to respondents were preference in the RFQ/RFP process and occupant incentives for operating businesses in green buildings.

Ø The respondents were interested in continued information on the up-front costs and the return on investment associated with green or sustainable practices.

Ø The two certification programs that respondents were most interested in learning more about were USGBC LEED and Florida Green Building Coalition.

Statistical Summary

The 2009 Sustainability Survey was made available through an email campaign to ULI members and related industry organizations on May 7, 2009 and ended on July 31, 2009. The survey had 118 respondents. The outcomes are summarized below.

When people talk about a “sustainable” project, what do you think they mean?

In order of popularity, respondents identified the following as indicators of sustainability:

1. Environmentally friendly building materials
2. Energy efficiency
3. Lasting for generations
4. Socially equitable
5. Other

Have you or your company implemented any of the following energy-saving or sustainable technologies in a development?

More than half of respondents have implemented some kind of energy-saving or sustainable technology in a development in the past. Even more important, the number of respondents who have implemented these technologies in a development represented a very large percentage of those who identified themselves as being involved in the horizontal development process in question 4. In other words, the vast majority of people who have had an opportunity to participate in the horizontal development process have implemented energy-saving or sustainable technologies.

The most implemented techniques were: - Maximization of green space and/or increased development density - Pedestrian and/or multi-modal connectivity - Protection/restoration of natural areas/habitats
These three techniques are also required at some level by many of the land development codes in Southwest Florida. The fourth highest ranking, vertical mixed-use development or diversity of housing types, is becoming a common practice in today’s developments.

Several lesser implemented techniques had very similar numbers of respondents, and further examination revealed that the techniques were all part of the LEED certification process.

Have you or your company implemented any of the following energy-saving or sustainable technologies in a building?

The number of respondents who had implemented energy-saving or sustainable technologies in a building were far fewer, but the number of respondents directly involved in the building process is also lower (see question 4). Again, techniques required or suggested by LEED all had very similar outcomes.

What is your role in the development process?
As mentioned above, the majority of respondents were consultants for horizontal development (44%).

In order of percentage 44% - Consultants for horizontal development 20% - Local government 19% - Consultants for vertical development 17% - Builders

Overall this response demonstrates a tendency for the respondents to act as advisors, rather than as decision makers. It seems that arming advisors with as much information as possible will still impact the decision makers, albeit in a more roundabout way.

Local government, which represented 20% of respondents, are likely to make up a large percent of “other” responses in this survey. It should also be noted that 14% of respondents (16 people) didn’t feel that they fit into any of the categories offered.

What would it take for you to include green or sustainable technologies in a project?
Respondents ranked the options in the following order of importance:
1) Up-front cost savings;
2) Decreased operating costs;
3) Marketing benefits;
4) Availability of appropriate products; and
5) Stewardship and social responsibility.

Do you include the costs and benefits of green or sustainable development into your pro forma when determining your project’s development program?

37% of respondents already include the costs and benefits of green or sustainable development into their pro forma when determining their project’s development program. The percent of respondents who do not include costs and benefits of green was exactly the same: 37%. The “other” option was used by 25% of respondents; suggesting that the question either did not apply (local government respondents, for example) or they use some other method to determine whether they will include sustainability (social responsibility, for example).

What incentives could local governments provide that would make you want to use a green building code?
Reduction in impact fees was selected as the most popular incentive. Increased density or increased floor area ratio bonuses and tax incentives were also identified. The least important incentives were preference in the RFQ/RFP process and occupant incentives for operating businesses in green buildings.
What do you want to know about the economics of green or sustainable projects?

The top answers to this question were: - Up-front costs associated with green or sustainable practices (86%) - Savings and operating costs (return on investment) (85%) - Opportunities for grants and other programs to assist with costs. (82%)

Availability/cost of products (64%) and marketing benefits in dollar form (57%), received a much lower ranking suggesting that some respondents are either already familiar with those concepts or that they perceive the other information as a priority.

Which certification programs are you most interested in?

This question asked that respondents choose 3 or less programs, and as a result there was a clear mandate for LEED and Florida Green Building Coalition. The NAHB National Green Building Program and Energy Star Homes received a similar amount of interest, but both were well below the top two choices.

What kinds of sustainability topics would you like to see in a ULI program?
Ninety respondents provided responses that were appropriate for inclusion in this summary. Many of the responses addressed multiple subjects or questions. Sustainability is a very broad subject matter and as documented in question #4 (What is your role in development process?) the respondents have differing roles in the development process. Based on the results the following topics were identified:

Cost of Green/Return on Investment/Financial benefits: 19 respondents
Miscellaneous responses: Those responses categorized here were responses that dealt with a single subject matter that was generally not repeated in other responses. There were 12 of these and they addressed very valid aspects of sustainable development as follows: Universal definition?, sustainable agriculture, case studies, pedestrian oriented development patterns, carbon calculator, ULI, APA, AIA collaboration, Concrete construction topics, energy, air pollution and waste, greening of pre-platted lots, green remodeling, green examples outside US, Renovating abandoned buildings, benefits of green, public health and awareness, air quality.
Regulatory Incentives: 9 respondents were interested in various aspects of this topic.
Comparison of Green Programs: 8 respondents showed interest in a program that compares and contrasts the various programs out there.
“Real world” Applications: 7 respondents were interested in practical applications that may have already been successfully implemented.
Water quality/Storm water/LID: 7 respondents showed interest in these related topics.
Green Products: 4 respondents were interested in various aspects of this topic including interior design products.
Greenfield vs. Infill: 4 respondents were interested in various aspects of this topic which in my opinion is very relevant to current growth management debates.
Transportation and Infrastructure: 4 respondents were interested in various aspects of this topic.
Density: 3 respondents would like to explore the relationship between density and sustainable design.
Green Technology, Integrating Horizontal and Vertical Components and Sustainable Landscape and Irrigation: Each of these topics were suggested by 2 respondents.

Conclusions/Comments: Sustainability is a broad platform and has many diverse interested practitioners. The financial feasibility of sustainable development is the most prevalent concern and appears to cross all spectrums of the industry and organizations.
The ULI Southwest Florida Sustainability Committee will continue to seek input and will strive to develop programs that meet the interest of the membership.
For more information on the Sustainability Committee please contact Heather Francis at HAFrancis1@aol.com.