1. Geoexchange in Commercial Buildings – An Owners Perspective Phillip Saieg, LEED AP O+M Director of Sustainable Building

2. Agenda: Top reasons owner’s choose Geoexchange systems The Market Trends for Green Buildings Why Energy Efficiency and Green Matters to an Owner Who makes what decisions in commercial buildings

3. Top Reasons owners choose Geoexchange 1. Low maintenance (total cost of ownership) 2. Long system life 3. Hedge against rising and volatile energy prices. 4. Geo is the best / lowest impact system for building owners wishing to be sustainable 5. Depending on the application Geoexchange is interesting to building owners because it can balance both heating and cooling loads. However… Bottom line if an owner is just fixated on lowest first cost it is unlikely they will choose Geoexchange

4. “As green buildings become more common, conventional buildings will rapidly lose value and become obsolete - Charles Lockwood, Harvard Business Journal (2006) “Green will be measured by the business community, regulators, savvy consumers…stay on top of green or eat everyone’s dust. There will be differentiation over the long run, adapt or get crushed.” - Urban Land Institute, Emerging Trends (2008)

8. Top 5 reasons business owners go green 1.Competitive differentiator 2.Mitigate risk 3.Attract tenants 4.Cost-effective 5.Increase rental rates

9. Top 5 business reasons tenants choose green 1.Happier employees and occupants 2.Public relations and community benefit 3.Lower operating costs 4.Immediate and measurable results 5.Save energy

10. WWW. SUSTAINABLECOLORADO. ORG

13. Building AddressSquare FeetPriceAvg. $/SF 1428 15th St11,360$2,625,000$231.07 1750 15th St16,402$3,650,000$222.53 1800 15th St, Unit 1061,933$285,000$147.44 1127 Auraria Pky, Unit 3031,874$435,000$232.12 1940 Blake St18,750$235,000$12.53 2300-2340 Blake St43,750$8,500,000$194.29 2401 Larimer St6,135$1,200,000$195.60 1444 Market St7,267$1,425,000$196.09 1435 Wazee St, Unit 102583$440,600$755.75 1425 Wewatta St25,000$3,500,000$140.00 1610 Wynkoop St29,202$5,300,000$181.49 Average:14,751$2,508,691$228.08 Conventional Buildings sold in LoDo 2010-2012 CoStar data

14. Building AddressSquare FeetPriceAvg. $/SFValue from Green* % of Total Value 1755 Blake St112,928$40,600,000$359.52$4,636,823.6811.42% 1645-1675 Larimer St118,262$17,500,000$147.98$4,855,837.7227.75% 1800 Larimer St495,518$213,223,000$430.30$20,345,969.089.54% 1513-1530 Wynkoop St306,791$118,000,000$384.63$12,596,838.4610.68% 1899 Wynkoop St165,727$52,700,000$317.99$6,804,750.6212.91% Average:239,845$88,404,600$328.08$9,848,043.9111.14% *Calculated as: $41.06 x building square feet $/SF Difference in $/sf between green and conventional$100.00 Percent difference 43.84% Average conventional building sale price$228.08 Value of 18% premium on conventional sale price$41.06 Green Buildings sold in LoDo 2010-2012, including estimates of the potential value from green of the sale price and that percent of the total value

15. “Energy upgrades are the new granite counter tops.” Energy Efficiency as Investment

22. Non Energy Benefits

24. Thank You Phillip Saieg LEED AP O+M Alliance Center Director 303.572.1536 All are welcome to tour the Alliance Center