|Jones Lang LaSalle Manages Landmark Empire State Building Sustainability Program|
April 7, 2009
NewsvineTeam analysis demonstrated mutual value of environmental and financial
The Empire State Building is "going green," profitably.
Jones Lang LaSalle and its program partners unveiled a
landmark energy sustainability program for the iconic property that will reduce
the Empire State Building's energy use and greenhouse gas emissions by up to 38
percent. Once completed, the building is expected to achieve an ENERGY STAR
score of 90, placing it in the top 10 percent of efficiency for Class A
buildings, a major feat for a pre-war property. In addition, the Empire State
Building will pursue LEED Gold building certification.
Jones Lang LaSalle serves as program manager of a highly collaborative team
under the direction of Anthony E. Malkin of Empire State Building Company to
develop the first comprehensive approach to model steps for the reduction of
energy consumption, and to share details of the process to create a replicable
model for energy projects in buildings around the world. This program provides
an economically sound path for owners of existing buildings to pursue
responsible energy management profitably.
"This innovative process, which has developed new modeling and program
development techniques, offers a clear path to adoption around the world,
leading to significant reductions in greenhouse gas emissions," said Anthony E.
Malkin of building owner, Empire State Building Company. "Along with other steps
taken, in recycling waste and construction debris, use of recycled materials,
and green cleaning and pest control products, the model built at the Empire
State Building will meaningfully speed the reduction in energy consumption and
environmental impact and allow more sustainable operations - while
simultaneously enhancing profitability."
"In defining these innovate procedures, the Empire State Building team has
demonstrated a strong business case for energy efficient retrofits with positive
environmental results," said Raymond Quartararo, International Director and
program lead for Jones Lang LaSalle. "By pursuing these strategies owners can
save millions of dollars and enhance asset values while significantly reducing
greenhouse gas emissions. That's a win-win for owners, tenants and the global environment."
The Empire State Building's retrofit program carries an initial cost of
approximately $20 million and will result in annual energy savings of $4.4
million once implementation is complete, with the majority of work expected to
take place within two years. The program will reduce carbon dioxide emissions by
105,000 metric tons over the next 15 years, equivalent to the annual emissions
of 17,500 cars.
As program manager, Jones Lang LaSalle represented ownership and coordinated an
innovative analytic process with an expert team that included Clinton Climate
Initiative, Rocky Mountain Institute and Johnson Controls Inc. The team reviewed
more than 60 energy efficiency strategies against the goal of balancing carbon
and economic impacts. It also examined the upfront cost and the associated
energy savings and greenhouse gas reduction of different strategies to determine
the payback period and the net present value over a 15-year horizon.
The process demonstrated the financial value of implementing an optimal set of
energy strategies in a model that can be replicated by older buildings around
the world. The ability to articulate a business case for sustainability allows
owners of existing buildings to tap into emerging financing alternatives.
"We will be working to establish a financing format to provide the ability to
otherwise indebted properties to participate in this sort of project, though the
work on this project is not financing contingent and is going forward out of
already available cash," said Malkin.
Eight major projects are being implemented, including: a 6,500 window light
retrofit, the introduction of radiator insulation; improved tenant lighting,
daylighting and plug upgrades, air handler replacements; a chiller plant
retrofit; a whole-building control system upgrade ventilation control upgrades
and new Web-based tenant energy management systems.
The program will also encourage property tenants to reduce energy use through:
Pre-built spaces will save $0.70 - $0.90 per square foot in operating costs
annually for an additional cost of $6 per square foot;
The introduction of pre-built designs to configuring or reconfiguring space
that verifies reduction of energy usage and greenhouse gas emissions with
online calculators supplied by the project team;
Sub-metering tenant spaces to measure usage reductions and assist in carbon
Jones Lang LaSalle is a committed leader in providing energy and sustainability
solutions to the commercial real estate industry. Through a comprehensive range
of services that align with business objectives and drive real cost savings, the
firm helped companies save more than $95 million in energy costs in 2008.
About Jones Lang LaSalle
Jones Lang LaSalle (JLL) is a financial and professional services firm
specializing in real estate. The firm offers integrated services delivered by
expert teams worldwide to clients seeking increased value by owning, occupying
or investing in real estate. With 2008 global revenue of $2.7 billion, Jones
Lang LaSalle serves clients in 60 countries from 750 locations worldwide,
including 180 corporate offices. The firm is an industry leader in property and
corporate facility management services, with a portfolio of approximately 1.4
billion square feet worldwide. LaSalle Investment Management, the company's
investment management business, is one of the world's largest and most diverse
in real estate with more than $46 billion of assets under management.