Overview
By: Zale Skolnik
With recent developments in sustainable building materials and an increased appreciation for our ability to harness natural resources as sources of sustainable energy, the Canadian commercial real estate development world is an exciting place.
While definitely not first to embrace the "green" wave, Canadian real estate developers have jumped onboard and are increasingly turning to innovative green technologies in the name of sustainability—and there's good reason for it.
Upgrading buildings with green technology can reduce operating costs for landlords and tenants, extend the life of the buildings, create a healthier living or work environment for tenants and produce excellent branding/ marketing opportunities for developers.
A large proponent and motivator of this green shift is Leadership in Energy and Environmental Design (LEED). LEED is the administrative body that creates rating systems through which developers can measure their buildings' environmental footprint. LEED's certification of buildings promotes sustainability, which has provided a goal for developers, engineers, architects and the like to aspire towards. In pursuit of this goal, efficiencies have emerged and in pursuit of maximizing these efficiencies, innovative new technologies compete for the attention of developers.
Under-floor air distribution systems, variable speed drives on pumps and fans, automated shading programs, daylight harvesting hardware, waste management and distribution practices, salt water air conditioners, demand controlled ventilation and geothermal power are just a few spaces that have seen huge innovation in recent years. This innovation is met with gains in productivity in office spaces: energy efficient natural lighting systems accounted for a 23% increase in employee productivity and an 11% increase was seen from new state-of-the-art air ventilation systems which produce better air quality. Individual temperature controls accounted for a 3% gain in productivity and huge savings, which has undoubtedly contributed to its emerging popularity in its residential application via products like the Google Nest thermostat.
Developers have taken note of the increasing demand for LEED certified buildings. In the Toronto downtown core alone, landmark buildings such as the Sun Life Financial Tower, RBC Waterpark, Union Centre and TD Centre Tower are all LEED certified platinum (the highest rating). Similarly, RBC Centre, Telus House, Bay Adelaide Centre, and PwC Tower are all LEED certified gold.
As our current infrastructure begins to crumble under the increasing demands of population growth, we are becoming less able to draw on traditional resources for repairs and maintenance, as those resources are either rapidly depleting or their extraction/ production has adverse effects that outweigh their renewed use. Forced to work within the constraints of environmentally sustainable processes, developers have begun to recognize building and occupant performance as a driver for green developments. As innovation progresses and this performance continues to improve, these influences are sure to positively impact our already changing real estate landscape.