The business case for green building keeps getting stronger and stronger. A recently released University of San Diego led study, entitled Green Buildings and Productivity, confirms that green buildings have a significant impact on employee productivity, while at the same time lowering ongoing operational costs.
The study concludes that on average, employees reported 2.88 fewer sick days in their current green office versus their previous non-green office. Using an average salary calculation, an office space base of 250 square feet per worker, and a count of 250 workdays per year, the decrease in sick days translated into a net impact of nearly $5.00 per square foot per year. When added to other productivity gains, such as staff output and morale, the net impact grew to $20.00 per square foot per year.
Healthier buildings reduce sick time and increase productivity. The steps required to provide a healthier building are not that much of a design and engineering challenge. Generally natural light, good ventilation, the absence of organic compounds provides happier, healthier workers.
The study also showed that green buildings have 3.5% lower vacancy rates while also allowing owners to charge higher rent than market rates. The research was based on surveys of 154 buildings under commercial real estate broker CB Richard Ellis Group’s management, with a total 3,000 tenants in ten markets spread across the U.S. A green building was defined as one with either LEED Certification or the EPA ENERGY STAR ® label.
A smaller 43-page case study from Australia, entitled Employee Productivity in a Sustainable Building, showcases the pre- and post- effects on employee productivity. The report tracked the productivity of employees from two large companies who had moved to a 5-star green building, the Green Building Council of Australia equivalent to the USGBC and CaGBC LEED system. A law firm, tracking before and after sick days, found sick days reduced by 39% overall to .28 days per month. Additional impacts in areas such as billable hours and typing speeds also had significant positive impacts for the firm.
The results collectively suggest a significant positive impact on staff productivity and satisfaction resulting from the move. They do not provide the basis for the construction of a predictive model for productivity gains from sustainable office accommodation, but do provide a compelling case for IEQ as a positive influence on staff productivity.
The University of San Diego led study also adds to a previous analysis published in 2003 by Gregory H. Kats, entitled Green Building Costs and Financial Benefits. Using a sample of 33 green building projects, the Kats report concluded benefits of $37 to $55 U.S. dollars per square foot. These savings were as a result of productivity gains from less sick time and greater worker productivity primarily from better ventilation, lighting and general environment. See chart below.
At Algonquin College, our commitment to sustainability includes a policy ensuring all new construction meets a minimum of LEED Gold certification. Our first LEED building will open in fall of 2011 with the completion of Algonquin’s Centre for Construction Excellence. Appropriately, we are seeking Platinum certification. Three new buildings set to open in 2012 will also meet LEED criteria.
Anyone looking for even more detail on the business case for green building should consider the following links;
