{"id":14027,"date":"2016-11-04T17:59:32","date_gmt":"2016-11-04T21:59:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-largest-private-real-estate-development-in-u-s-history-goes-green\/"},"modified":"2016-11-04T17:59:32","modified_gmt":"2016-11-04T21:59:32","slug":"the-largest-private-real-estate-development-in-u-s-history-goes-green","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-largest-private-real-estate-development-in-u-s-history-goes-green\/","title":{"rendered":"The Largest Private Real Estate Development in U.S. History Goes Green"},"content":{"rendered":"

The Surge in Green Building<\/strong><\/p>\n

The green building sector is a huge and growing industry which is expected to contribute 3.3 million jobs and $303.5B to GDP in the United States by 2018 [2]. This focus on resource efficient design, often noted by LEED certification, is not only beneficial to the environment, but is also a large cost-saving opportunity for real estate operators. LEED-certified buildings have almost 20 percent lower annual maintenance costs than traditional commercial properties [3]. These cost-savings, as well as the investor and end-consumer appeal of energy efficient properties, have enabled real estate firms such as Related to embrace green building.<\/p>\n

Related Companies: Embracing Sustainability from Corporate to Property-level<\/strong><\/p>\n

Related Companies is a New York City-based diversified real estate company with an existing portfolio of over $30B in real estate assets [4]. The company has implemented sustainability not only in its development projects, but also in its corporate office and property operations. On the development side, Related pursues a minimum of LEED Silver certification for all its eligible developments. Currently, this totals twenty-seven completed developments, and an additional sixteen planned developments [5]. Additionally, Related makes environmentally conscious decisions in many aspects of their corporate office. These decisions include choosing a hybrid car service, stocking recyclable pantry items, and relying on electronic payroll processes [6]. Lastly, Related has enhanced its properties\u2019 recycling capabilities and exclusively offers eco-conscious dry-cleaning and house-keeping services [6].<\/p>\n

Hudson Yards: A Model for Sustainable Urban Development<\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Hudson Yards, the largest private real estate development in United States history, is currently under development in New York City by Related. When the project is completed in 2025, it will include over 100 shops and restaurants, 4,000 residences, a public school, a luxury hotel, as well as commercial office space for companies like Coach, KKR, and Wells Fargo Securities [7]. The first tower to open as part of Hudson Yards is a LEED platinum-designed tower, the highest level of LEED certification. The entire project goes above and beyond traditional green building by incorporating organic waste conversion facilities, storm water collection, and an advanced technology platform that can reduce energy use through efficiently directing services like electricity and air conditioning [8]. Hudson Yards\u2019 onsite power plants are projected to save 24,000 MT of CO2 emissions, the equivalent of over 2,000 homes or over 5,000 cars [8].<\/p>\n

Looking to the Future: The Potential for Green Retrofitting<\/strong><\/p>\n

While Related has made significant progress in incorporating green building into new developments, opportunity remains in retrofitting existing properties to green standards. These upgrades include reducing water usage, improving the air and light quality of the property, and increasing energy performance.<\/p>\n

Benefits of green retrofitting include:<\/p>\n