NEW YORK, NY – April 07, 2009 – (RealEstateRama) — 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 reporting efforts
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 (NYSE: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. For further information, please visit our Web site, www.joneslanglasalle.com.
200 East Randolph Drive Chicago Illinois 60601 │ 22 Hanover Square London W1A 2BN │ 9 Raffles Place #39–00 Republic Plaza Singapore 048619
Contacts:
Craig Bloomfield
+1 312 228 2774
craig.bloomfield (at) am.jll (dot) com
Gayle Kantro
+1 312 228 2795
gayle.kantro (at) am.jll (dot) com
