LEED Logic for an Existing Building Portfolio
 Background
A global financial company with real estate holdings and asset
management services faced the challenge of developing a strategy
that would maximize the effectiveness of its investment in
sustainability for its portfolio of approximately 160 properties.
The company contacted Chelsea Group, which offers a streamlined,
cost-effective method to evaluate building portfolios and to direct
the LEED certification application process.
Chelsea Group, Ltd. and the financial company came to an
agreement to assess, improve and certify a select group of its
existing buildings under the U.S. Green Building Council (USGBC)
Leadership in Energy and Environmental Design (LEED) for Existing
Buildings (EB). LEED-EB provides a system of benchmarking to show
that certified buildings offer high quality indoor environments,
minimize waste to sewer and landfill, and use water and energy
efficiently. At present, LEED-EB provides what might be termed the
“gold standard” for sustainability in commercial real estate.
Chelsea Group recommended a simple, step-by-step approach that
provides immediate and ongoing assessment of the portfolio: first,
determine the feasibility for each property to meet the
prerequisites for LEED certification; then, establish a current US
EPA Energy Star ranking for each property, which is a critical
element of LEED certification and benchmarking of building energy
efficiency; and finally establish a LEED certification strategy
(certified, silver, gold, or platinum) and preliminary cost and
savings estimates for each selected property. Selected buildings
then proceed through a combination of an investment grade LEED audit
and retro-commissioning by Chelsea Group. As specific properties
near the potential for LEED-EB certification, Chelsea Group prepares
registration and final application for certification with USGBC.
The key differentiator of the Chelsea Group LEED-EB program is
its set of online tools for rapid assessment of key sustainability
factors. The financial company recognized the high value in having a
series of screening steps that cost-effectively allowed the company
to meet this challenge. The financial company used the outputs from
Chelsea’s online assessment tools as a guide to establish priorities
among buildings and to move forward on sustainability projects and
LEED-EB certification.
The Process
Building Prescreening for Basic Sustainability Factors
Having reviewed the Chelsea Group process, the financial company
quickly started about one-third of their properties on the first
step. This is an efficient screening to rapidly determine the
feasibility of achieving LEED certification for existing buildings
at participating properties. The property manager and building
engineer at each property worked together to complete an on-line
prescreening process that takes about 20-30 minutes.
 Prescreening
of the properties produced an overall assessment of the degree to
which managers in each building had completed prerequisite elements
of the LEED-EB program. Chelsea Group prepared a report of the
analysis of the data collected from the on-line prescreening
questionnaire, including weighted numeric performance analysis and
ranking, description of areas appearing to meet LEED-EB prerequisite
requirements, and suggested actions to meet each prerequisite.
The reports were delivered to the building managers at each
property and the financial company management. At regular intervals
results from all of the participating properties were summarized in
a portfolio report that provided a ranking of properties based on
their status relative to achieving LEED-EB prerequisites.
In the early stages of the assessment process, the company was
able to quickly and efficiently organize and prioritize its
portfolio. They could begin to determine whether it would be cost
effective to pursue any form of LEED certification for each
property. Based on the strategies determined by management with the
guidance of Chelsea Group’s LEED experts, the properties are
beginning to filter through the next steps, working their way toward
LEED-EB certification.
Immediate results: The prescreening process allowed
the company to determine the highest priorities for implementing
sustainability projects among their properties. The process took
minimal time away from the normal duties of the property manager
and building engineer at each site. The result was data and
analysis with value well in excess of cost.
Energy Star Ranking and Labeling
The second step in the LEED-EB process relates to one critical
prerequisite item – screening each property for its Energy Star
rating from the US EPA. Chelsea Group assisted in an Energy Star
review, beginning with compilation of utility data and a wide range
of information about the building. That information was entered into
the US EPA Energy Star “target finder” program to obtain a
preliminary report on building energy performance. Chelsea Group
then provided engineering analysis required by the Energy Star
program for buildings to achieve Energy Star Labeling under the US
EPA program.
Immediate results: Qualifying properties received
their Energy Star Label, an immediate indication of their energy
efficiency that represents a valuable marketing tool for leasing
space at labeled properties.
Checklist Assessment and Gap Analysis
The third step in the program is a checklist assessment of how
each selected property will score in the LEED-EB certification
process. Assessment of the top ranking locations based on the
prescreening process, plus other strategically selected buildings,
was done in on-line meetings of the property manager and building
engineer at each subject property with a LEED expert from Chelsea
Group. The meetings, which require about four hours of team effort,
produce data and bring consensus decision making on what LEED
credits are easily attained, which should be pursued, and which
items are not feasible.
 Chelsea
Group then prepared a report based on information gathered during
the meetings that allowed management to determine whether or not to
proceed to certification and if they wished to pursue higher levels
of LEED-EB certification (silver, gold, or platinum). The report
includes clear discussion of specific actions required to bring the
subject property up to LEED-EB requirements, as well as a
preliminary cost and savings estimate to implement such a program.
Sufficient detail is provided to guide both portfolio level decision
making and planning on site for future sustainability efforts.
Immediate results: The checklist assessment prepared
the selected properties to move into the LEED-EB certification
process smoothly and efficiently. Based on the reports,
decisions about when and how to proceed can be consistent and
cost effective.
Ongoing Results
The reports developed from prescreening and checklist assessment
show some of the anticipated benefits of applying Chelsea Group’s
program and pursuing LEED-EB certification:
- Reduce operating costs
- Return on investment
- Improve energy use
- Smaller carbon footprint
Corporate management found that following Chelsea Group’s process
emphasizes their company’s focus on sustainability to participating
managers and engineers. This message of the importance of
sustainable practices is imprinting on other areas of their building
management.
Decisions will be forthcoming on which projects to register for
LEED certification and then proceed with an investment grade LEED
audit and retro-commission, a combined process that optimizes both
functions and has an anticipated payback of less than one year from
resulting operating savings.
As specific subject properties near the potential for LEED-EB
certification, Chelsea Group will play the critical role of the LEED
Accredited Professional (LEED AP). Chelsea Group will assist in the
completion of the registration of the project and submittal of
related documentation. Chelsea Group can then assist in the
development and implementation of site-specific projects that will
enhance energy performance and sustainability. These projects and
related documentation will be assembled by Chelsea Group and
submitted to USGBC for certification.
By simplifying the process with online tools Chelsea Group has
been able to offer this company a cost-effective means of moving
through the process. That saves money to invest in real improvements
that will enhance the sustainability of their properties, not just
paperwork.
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