Why We Need Transparency in Green Building Certifications

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As sustainability becomes a major selling point for real estate buyers, the prevalence of LEED, the Green Globes, and other certification seals is skyrocketing. Because they issue seals of quality for sustainable architecture, non-governmental organization green building councils (GBCs) hold the primary responsibility for developing and implementing green building projects as well as their subsequent certification. Unfortunately, the value of green building certifications tends to be as clear as mud for developers who wish to capitalize upon them as a real estate marketing tool and investment strategy.

Vienna’s MODUL University recently published a study to demystify the role of GBCs in the international sustainable real estate industry. The project includes an industry-wide in-depth survey of international GBCs that includes interviews with board members and analysis of each organization. It also includes a comprehensive case study of the Austrian Sustainable Building Council (Österreichische Gesellschaft für Nachhaltige Immobilienwirtschaft, ÖGNI), which explores the five major factors which affect the scope of HGO’s that promote sustainable construction.

According to project coordinator Dr. Sabine Sedlacek, “sustainable building is a poorly regulated policy area …The decision about whether building certification is sought is purely market-driven and therefore voluntary, as it is made solely by the individuals involved in the project.” Sedlacek goes on to say that the GBC “seal of quality” market is characterized by a lack of transparency overall due to variance in standards, models, and evaluation methods among the different organizations. As verified sustainability is a mark of quality that also increases market value for a given development, this lack of transparency in the market may eventually impede the financing of green building initiatives and the adoption of green building codes.

The study determined that two key criteria for GBC effectiveness must be addressed in order to remedy this cloudy situation: 1. Promoting the perception of these GBCs as reliable partners, and 2. Increasing the size of the organizations. Organizational size translates to public awareness and raises the likelihood that the public will accept the organization’s governance efforts in the sustainable construction industry. Large memberships ensure wider market coverage and larger financial contributions, which make the organization economically viable enough to establish a long-term influence in the market.

Even more crucial for the success of GBC certification is the public perception of these organizations as independent agencies that serve the public good while representing the green-building industry interests of their member businesses. The primary factor which determines independence is the level of accountability demonstrated by each organization. Accountability, as we all know, is the result of a strongly transparent organizational structure. Therefore, transparency is the main factor to address if GBCs are to meet the criteria of perception and size which will establish them as reliable forces in the market.

The better that a GBC meets the demand for transparency, the better it will meet the size and perception criteria which will help it gain public trust and widespread acceptance of its sustainability standards. Because a GBC’s widespread acceptance and adoption are tied to its level of organizational transparency, the success of these GBC’s will likely create a more transparent market overall for sustainability seals of quality. Greater transparency in GBC certification translates to a stronger market value for sustainable construction.

Florida Construction Technology Students Build Habitat Home

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The Seminole Ridge High School Construction Academy recently built a Habitat for Humanity home as part of their construction trades training program. The four-year program is a choice elective at the Seminole Ridge High School. 150 students from the Construction Academy performed the construction work, which was supervised by project manager David Porter. Porter volunteered for the task, and while it was certainly rewarding, it wasn’t always easy.

According to Porter, “lot of these kids are deer in the headlights when the project starts because they’re so green and fresh.” Some students are more enthusiastic than others, “You’ll get about 70 percent kids who want to be there and want to learn and the other kids aren’t as prepared and maybe shouldn’t be there,” Porter says.

Most students join the Construction Academy to help their careers, but some are also interested in helping others. 18-year-old Seminole Ridge senior Ron Muscarella says that, “I really enjoy bettering someone else’s life. It’s a really labor-intensive program, but I’ve learned how to hang drywall and build a house from scratch.”

Students have no idea what the finished project will look like when they are going into it. The current project has “four detached modules separated by all this floor space,” according to Porter. “When we finally put the house together and it’s fully assembled and they meet the family,” his students are “like kids at Christmas, just beaming from ear to ear.”

Martin Bixler III, director of construction for the Construction Academy, says that this is the program’s third habitat home. The program has really evolved since it first began building for Habitat for Humanity. “The process is much smoother now,” Bixler says, “the first two homes we had problems with waste — buying too many materials, damaging materials during installation. But those were just growing pains.”

When finished, this a three-bedroom, two-bath, 1,206-square-foot home will go to Carolyn Tirado and her two sons. The family is eager to vacate the cramped two-bedroom apartment in Lake Worth. Tirado, a holistic coordinator at the Treatment Center of the Palm Beaches and full-time student at Palm Beach State College, says that her family is “super excited,” because their new home is “a whole lot bigger than where we live now…I can’t believe it’s almost here!”

 

Major Overhaul for Building Code in Dunwoody, Georgia

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On Dec. 8, the Dunwoody City Council passed building code revisions to make Dunwoody safer. The code changes have met with a degree of controversy and the ire of Mayor Mike Davis. The stricter building codes, opponents say, will have a chilling effect on development in Dunwoody and potentially limit the future construction of multifamily developments in the city.

The council voted 6-1 to adopt the stricter codes, which will require any buildings taller than three stories or larger than 200,000 square feet in gross floor area to be framed with noncombustible material such as metal or concrete. The previous limit was five stories. Mayor Davis criticized the measure, saying that it would “put lipstick on a bunch of pigs,” due to the number of Dunwoody properties available for redevelopment which may now, due to increased construction costs, only be repainted and remodeled instead of razed and redeveloped.

Dunwoody resident Marian Adeimy addressed the council during the public comment, urging them to put the decision on hold. Adeimy spoke both as a citizen and on behalf of the Council for Quality Growth, a development trade association for local developers, contractors, engineers, architects, and building trades professionals. She asked for a delay in order to determine how the code will impact both the community and the development industry in Dunwoody.

Of those who came forward to oppose the measures, Councilor Terry Nall notes that all were from the city’s development community.  Nall and Councilor Doug Thompson agree that while the city may lose development contracts, the requirements for higher-grade materials meet the necessary “life safety issues” which are implicit in development efforts. “We don’t need just any development, Thompson says, “we need quality.”

Citing a devastating fire that broke out in Los Angeles this week that destroyed an apartment building and closed the freeway for several hours, Councilor Nall noted that the building’s wood-frame construction undoubtedly added to the level of devastation. Councilor Lynn Deutsch reiterated the need for quality construction in Dunwoody prior to the vote, stating, “It’s not about how I leave Dunwoody the day I leave office, it’s about what I leave for future citizens 20 years from now.”

Spire Breathes Life into a Dull Corner of Dallas

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Steve Brown of the Dallas News reports that a development set to wake up a sleepy corner of Dallas is gaining momentum. Located along the northeast edge of downtown, the 12-acre mixed-use Spire project will bring shopping, dining, residences and office space to the otherwise under-realized area. The first phase is expected to be a 375,000-square-foot 21-story office tower behind the Plaza of the Americas complex.

Following more than a year of planning, Spire will occupy one of the central business district’s largest underdeveloped properties. Spire Realty Group president John Ruff explains that, “we’ve been intentionally patient and have been working on our plans,” because they know that downtown land availability is scarce. “We recognize they are not making any more land downtown,” he adds.

Immediately adjacent to the Arts District and amidst the development activity crawling east down Ross Avenue, Spire’s vacant lots have become very appealing for new construction. According to Ruff, “everybody in the real estate business knows about this project, but the public generally doesn’t,” but now, “what was once sort of a forgotten corner of the city is no more.”

More than a decade ago, spire began acquiring the real estate and engaged WDG Architecture to plan a mixed-use high rise project. With the economic upturn, Ruff admits that Spire realty is “in a position to be able to work on multiple projects at one time,” adding that they will have “a high-rise office, a high-rise multifamily building and a boutique hotel.” Deciding exactly which project to tackle first is a challenge, because timing is key. “We are teeing [the projects] all up so that when the timing is right we can execute them.”

In addition to the projected office tower, Spire may also build the hotel or apartment project as part of phase 1. Apartment builders have been very interested in the lots, as have hoteliers. “We could have sold that land — all 12 acres if we chose — to apartment builders,” says Ruff, “we’ve had a lot of interest from hotel groups…We have three or four groups we are talking with about a 200-room full-service hotel.”

With the construction of the new Hall Arts office tower on Ross Avenue bringing thousands of new office workers to the adjacent offices, and redevelopment of several 1980’s-era office projects nearby, millions of dollars in new investment have been pouring into the area. “The area is going to continue to get better, and the Arts District has improved with age,” Ruff said. “The activity and traffic has become heavier.”

Jacksonville Beach a Hot Market for New Luxury Housing

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Hello All! Dave Taylor here, checking in with you today about the construction boom that’s been happening in the Duvall County, Florida’s Jacksonville Beach. Building trades professionals seeking residential construction job leads would do very well to check out our building activity reports for Duval County. The luxury housing market in Jacksonville Beach has increased, along with the demand for ocean-front and ocean-view homes, and a drop in available lots for building.

While the economy in Jacksonville Beach isn’t quite as strong as the surrounding area, Jacksonville.com’s Teresa Stepzinsky writes that the area is very desirable for upmarket buyers. In 2008, only 12 permits totaling a mere $3.5 million were issued, with the lag continuing into the next decade. But in 2014, 110 permits for single-family housing were issued for over $48.8 million.

Carol Zingone, a broker-associate at Berkshire Hathaway HomeServices Florida, notes that “There’s not a lot of oceanfront property.” Yet, the market is really heating up. The Beaches area of Jacksonville Beach is desirable because it has greater access to activities, public beachfront, restaurants and night life than neighboring Neptune Beach and Atlantic beach. Zigone reports that the median price for a 3-bedroom/one-bath, pre-existing, 925-square-foot bungalow is $118,000, but that the low-end properties are dwarfed in size, price, and number by pricier luxury properties.

Many of these luxury properties are density developments that are currently under development. The biggest developments underway in Jacksonville Beach are Ocean Terrace, BluWater Apartments, and The Cottages at Jax Beach.

The Cottages at Jax Beach is an infill/pocket development seven-home development under construction from Ninth Avenue and first Street, running all the way to the oceanfront. These 3-level single-family and duplex-homes of The Cottages at Jax Beach are between 2,800 and 3,300 square feet of living space, and include an over-sized 1- or 2- car garage. Prices range from $595,000 to $749,500 with yards that are big enough for swimming pools and stunning ocean views.

BluWater Apartments, a 170-unit luxury apartment complex on the redeveloped site of the former George Moore Chevrolet, is seven blocks from the ocean. One-, two-, and three-bedroom units ranging from 620 square feet to 1,373 square feet will rent from $1,095 to $2,500 per month. Many units have already been leased.

Ocean Terrace is an exclusive 59-site development located between Sanctuary parkway and South Beach parkway that is a mere five blocks from the ocean. Floorplans range from 2,250 square-foot, three-bedrooms to 3,100 square feet, six-bedrooms, with prices starting in the low $400k’s.

The New Jersey-based KABR Group purchased a one-block oceanfront tract that allows for construction greater than the 35-foot height limit found in place for the rest of the beachfront. It has been speculated that luxury high-rise condos will be developed for the lot during 2015, but KABR has yet to formally announce any of their plans for the area.

Our Subscribers know that HBW’s  Building Permit Activity reports are a solid source of residential construction job leads. But they may not realize that HBW offers unparalleled market analytics and construction activity trend reports on a county-by-county basis so construction trades professionals can fine-tune their marketing and promotion efforts.

2015 to Bring More Single-Family Construction to Texas Markets.

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Trey Garrison of Housingwire.com predicts that Texas will see a shift towards single family construction in 2015. Citing the Federal Reserve Bank of Dallas’ most recent edition of Southwest Economy, Garrison says that “apartment construction in Texas will likely moderate, while the state’s single-family housing market may regain traction in 2015.”

2014 saw a drop in Texas’ single-family housing market. Dallas Fed economist Laila Assanie notes that there were record-high prices, and low existing-home inventories, which combined with a decline in affordability to slow down growth in home sales. Improvements in 2015 will rely on increased supply of existing homes and improved access to credit for first-time and lower-income home buyers, according to Assanie. It is these entry-level buyers who have been most seriously impacted by rising home prices and strict mortgage lending standards, as well as builders’ decision to embrace the higher-end “move-up” residences instead of affordable homes at the lower end of the price scale.

Dec. 1 brought revised lending standards from Fannie Mae and Freddie Mac. One major change is the elimination of a requirement that a borrower puts 20% down to buy a home. It is expected that these rule changes will mortivate lenders to relax the underwriting rules, which should also benefit the Texas single-family market. Assanie says that, “This will allow low- and moderate-income borrowers greater access to credit, speeding up the review process and stimulating the housing industry.”

Currently, builders are offsetting the risks of entry-level construction by taking a density approach. Townhomes, patio homes, duplexes, and condos have increased in recent years as a way to snag first-time buyers who wish to forage into home ownership. But this volume density strategy is expected to change.

The Texas multifamily market is leveling out, with occupancy levels and rent growth slowly cooling down as construction nears completion on the new units. However, occupancy and rents are expected to remain at or above market-value despite this slow cooling trend, due to Texas’ population and economic expansion.

According to Mark Dotzour, chief economist and director of research at the Real Estate Center at Texas A&M University, “I feel that this is one of Texas’ most pressing economic development issues.” Dotzour recognizes that ballooning home prices might negatively impact the state’s economic growth, adding “we need to build more homes to keep the supply high enough to prevent prices from getting so expensive that new workers choose not to relocate to Texas.”

Municipalities Must Keep Miami-Dade County Historic Preservation Code—For Now

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According to the Miami Herald, a committee of the Miami-Dade County Commission tabled a proposal on Wednesday regarding the county’s jurisdiction over historic properties. This controversial proposal would allow municipalities to “opt out” of county jurisdiction for historic preservation. Activists are concerned that the measure will weaken protection of historically or architecturally significant buildings.

The Cultural Affairs committee’s unanimous decision has postponed the measure for the time being, thus keeping it from progressing to the full commission for review. Commissioner Sally Heyman, sponsor of the proposal, is expected to bring it back to the commission for a full reading three months from now.

Heyman was asked to withdraw the measure by fellow Commissioner Barbara Jordan. The withdrawal move was strongly backed by officials who have seen preservation battles in the towns of Bay Harbor Islands and Surfside, after former Miami beach mayor Matti Bower publicly criticized it during a public hearing.

Rather than withdraw the measure, Heyman requested a three-month deferral so that the measure can be refined into what Heyman calls “a working study,” which preservationists in attendance soundly protested with a thumbs-down gesture. After a 2-2 vote, the committee failed to approve the deferral, which prompted Commissioner Xavier Suarez to propose the measure be tabled.

Preservationists contend that Heyman’s measure would gut historic preservation in Surfside and Bay Harbor Islands by turning control over to town officials who are generally hostile to historic preservation. Daneil Ciraldo of the Miami Design Preservation League calls the tabling, a “good victory,” adding that, “it’s over for now. We didn’t want this dragged out with committees and studies.”

The tabling does little to resolve the ongoing preservation battles in Surfside and Bay Harbor Islands. Next week the county preservation board will consider the historic designation of three architecturally significant buildings in Surfside.

The current Miami-Dade preservation ordinance gives the county preservation office and board jurisdiction over towns that lack their own programs. Recently, the county office began preservation efforts in Bay Harbor and Surfside in order to protect several significant Miami Modern and Art Deco buildings. Town officials and condo developers complained to Heyman, whose district comprises both towns, because many of those properties were targeted for demolition.

Glass and Fenestration Affected by Latest Green Standards

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The 2014 version of the green building standard was released by the U.S. green Building Council and the Illuminating Engineering Society recently, and according to Nick St. Denis, there are significant changes afoot for windows in green buildings. The latest version, 189.1-2014, Standard for the Design of High-Performance, Green Buildings Except Low-Rise Residential Buildings has significant implications for fenestration and glass usage.

Birch Point Consulting green building expert Tom Culp explains that, “one change was in how they set the prescriptive envelope requirements, including windows. Rather than develop the traditional tables of criteria for each zone and each product type, ASHRAE 189.1 now just sets its requirements as a set percentage better than ASHRAE 90.1.”

The U-factor across all zones sets the new standard at 10% lower than the ASHRAE 90.1 value. Culp says that this will encourage the development of more efficient products such as warmth-edge sensors, fourth-space low-E coatings, argon gas fill, and high-performance framing, but that triple glazing will no longer be required.

Another change involves the solar heat gain coefficient (SHGC). The new standard factors the relationship between building orientation and daylighting in to calculations of the SHGC. Beginning with 189.1-2014, the SHGC is required to be 10% lower only on the east and west sides of the building, and it should be n lower than 0.25 overall.

The new standard has added Environmental Product Declarations (EPD) in the material requirements section, in keeping with LEED and the International Green Code’s inclusion of EPD’s. Glass and fenestration manufacturers can expect more requests for EPD’s on their products.

Onsite renewable energy requirements were strengthened in the new standard. With photovoltaics and solar panels increasingly being tied-in with the glass and fenestration of building-integrated renewable energy systems, the standard anticipates green energy requirements.

According to Culp, “An onsite-renewable system that provides between six to 10 kBtu per square-foot of roof area is required, unless the building does not receive a minimum amount of solar incidence due to shading, building location, etc.,” which means that developers “still have to purchase renewable energy credits, which still can include photovoltaics on other buildings, or off-site solar farms.”

3 Housing Market Predictions for 2015

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Judging by the data, the U.S. housing market is finally beginning to recover from the 2008 meltdown. 2014 was the best year since the real estate slump started, and even if the trends cool down, the job growth and economic recovery are good reason to be optimistic about 2015’s housing market. Realtor.com’s chief economist Jonathan Smoke has three key predictions for the 2015 housing market:

The Foreclosure Crisis Will (Finally) End

According to Smoke, “we are on pace for foreclosure inventories to end 2014 down more than 30%, and next year should see a slightly greater decrease as foreclosures fall to normal levels.” Seven years after the housing bubble burst and foreclosure rates exploded, the situation is finally beginning to normalize. Real estate sales composition has improved, with foreclosures and short sales contributing less to the overall sales picture and sales of newly built properties making a bigger share of the total. This picture will vary from region to region, but nationwide, the sales composition is improving.

Mortgages Rates Will Climb

The rock-bottom mortgage rates we have seen over the past several years will begin to climb as the economy improves. The job growth will lead to higher, but still reasonable, interest rates. The Federal Reserve is expected to increase the federal funds rate in 2015. The rate has hovered near zero since December 2008. Even in the Fed postpones a rate increase, Smoke says that mortgage rates will rise ahead of time in anticipation of the Fed’s move. “Our forecast for housing assumes the 30-year fixed rate will reach 5% by the end of 2015,” explains Smoke, “The one-year adjustable rate will likely rise less if much at all, and accordingly, we are likely to see a shift into more adjustable and hybrid mortgages over fixed.”

Millennial Home Buying

Improved employment prospects for 2015 will begin to pull older Millennials out of the rental slump they have been stranded in since 2008. As they move from survival mode to growth mode, the older Millennials are starting families and will be looking to set up house. Smoke predicts that the majority of first-time home buyers for 2015 will be from this demographic. Smoke says that, “millennials make up around 65% of first-time home buyers,” adding, “of the millennials who are buying a home, 86% indicate that their motivation is a change in family size.” However, with the housing crunch in coastal metropolitan areas and the ongoing credit crunch in the real estate market, Smoke expects millennials to buy in the more affordable areas in the South and Midwest.

Residential Development Innovations for 2015

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According to Abigail Phillips of Construction Global, safety is the keyword for home building innovation in the coming year. Especially weather-safety. Residential construction experts know that a well-built home is a home that can stand up to all kinds of inclement weather time and again. Innovation in weather-proofing newly built homes comes from improved structural design and key finishing features. Here are the top five trends in residential construction innovation:

Improved Roofing

Excess moisture is a major threat to any home, especially moisture from rain and snow. A home’s first line of defense against snow, ice, and rain is the roof, so solid roofing is a must. The last few decades have brought major innovation in roofing materials. We’ve come a long way from terra cotta tiles and tin roof slates. Today’s roofing options include 50-year aluminum shingles and 30-year fiberglass shingles. Both materials are stronger, lighter, and more durable than traditional materials. An advanced roofing system will make the entire home stronger and safer.

Water and Rain Resistance

When precipitation penetrates a home’s siding, it begins to erode the eaves and damage the underlying wood, which compromises the building’s structure. As the moisture seeps in over time, it leads to internal water damage in the framing and foundation. One of the simplest ways to avoid this is to install gutter guard systems to redirect the water away from the house. Gutter guards use helmets and filters to keep out the clog-inducing debris that so often ruin gutter system efficiency. Not only do gutter guards save on annual upkeep expenses, they also prevent moisture from getting to the wood framing of your home.

Composites

For decades, heavier materials were considered to be superior materials. With the advent of modern composites, all that has changed. Builders are increasingly replacing heavy lumber like pine with composite woods that are lighter, stronger, and more rigid to improve a home’s structural integrity. Composite woods have the added advantage of being weather and termite resistant. The structural integrity and termite-resistance improve the longevity of the home.

Modular Building

Residential builders are increasingly embracing modular construction These prefabricated units are built to the developer’s specifications in a factory and shipped to the site for assembly. Modular construction runs between 10%-30% cheaper than conventional onsite construction, and takes an average of 25% less time to erect. Modular units are engineered for a perfect fit and the structural integrity of the units isn’t compromised by weather onsite during the construction process. The high quality control and rapid customization features of modular building are also very appealing to developers.

Wind-Resistance

In coastal areas and tornado alley where high-wind events are common, wind-resistance is a major feature that home builders plan for. Wind-resistant safety features such as storm strapping, all-thread tie-rods, and hurricane clips which increase structural integrity are becoming standard features on newly built homes. They can also be retrofitted onto existing structures to increase a homeowner’s peace of mind.