team;decided;to;use;a;strategy;called;“net;present;value;midpoint”
–;the;point;where;net;present;value;intersects;with;the;amount;of
carbon;emissions;that;could;be;avoided.;This;approach;compared
favorably;to;( 1);net;present;value;maximization,;in;which;measures
designed;to;optimize;net;present;value;would;be;adopted,;and;( 2);car-
bon;reduction;maximization,;in;which;measures;that;maximize;reduc-
tions;in;carbon;emissions;would;be;adopted;regardless;of;their;impact
on;net;present;value.
Utilizing;this;strategy,;team;members;brought;together;data;and
findings;from;available;standards;and;measurement;tools;–;such;as
ENERGY;STAR®,;LEED,;Green;Globes,;eQuest;and;others;–;to;create;an
Integrated;Sustainability;Master;Plan;Report;that;factored;in;assump-
tions;about;fuel;escalation,;construction;escalation,;inflation,;real;dis-
count;rate;and;a;projected;rent;premium;based;on;the;building’s;status
as;a;green;structure.;All;of;this;was;calculated;on;a;15-year;time;hori-
zon.;Additionally,;impacts;of;various;carbon;trading;proposals,;possible
miscalculation;of;energy;savings;and;other;variables;were;applied.
The;result;of;the;analysis;process;was;a;list;of;more;than;60;ener-
gy;efficiency;ideas;for;consideration.;That;list;was;narrowed;down;to
17;measures;that;were;deemed;implementable;and;were;studied;in
depth.;Ultimately,;the;following;eight;strategies;were;selected:
•;on-site;refurbishing;of;roughly;6,500;windows;to;reduce
summer;cooling;load;and;reduce;winter;heat;loss
•;adding;insulation;behind;radiators;to;reduce;winter;heat;loss;and
summer;cooling;load
•;upgrading;tenant;and;common-area;lighting;with;controls;and;sen-
sors;to;reduce;electricity;costs;and;cooling;loads
•;retrofitting;the;on-site;chiller;plant;to;increase;efficiency
•;replacing;existing;constant-volume;units;with;variable;air
volume;units;using;a;new;air-handling;layout
•;installing;CO2;sensors;to;control;ventilation;of;outside;air;based;on
actual;need
•;giving;individual;tenants;Web-based;tools;for;monitoring;and;man-
aging;their;power;use
•;optimizing;HVAC,;lighting;and;other;building;systems;with;Johnson
Controls’;Metasys®;building;management;system,;which;includes
wireless;monitoring;of;virtually;every;element;of;building;HVAC
systems
Today,;the;majority;of;this;work;is;completed.;The;remaining;proj-
ects;are;on;schedule;to;be;completed;by;the;end;of;2013.;Part;of;the
building’s;$550;million;renovation,;the;cost;of;these;energy;efficiency
improvements;is;approximately;$20;million;–;at;an;incremental;budget
cost;of;$13.2;million;(the;other;dollars;were;already;budgeted;for
capital;improvements).
Remarkable;Results
The;selected;improvements;are;expected;to;result;in;energy
savings;of;38;percent;–;ranking;the;Empire;State;Building;among
the;top;25;percent;of;all;U.S.;office;buildings;of;any;age;for;energy
efficiency;and;lowering;energy;costs;by;$4.4;million;a;year.;A;total
Enhanced;Marketability: Energy;efficiency;attracts high-profile;tenants District Energy / Fourth Quarter 2011 13
Proving;that;energy;efficiency
retrofits;make;multitenant;office
buildings;more;marketable;and
valuable,;the;Empire;State;Building
has;attracted;an;impressive;list
of;tenants.
Global;beauty;and;fragrance
giant;Coty;Inc.;–;representing
such;brands;as;Calvin;Klein,;Vera
Wang;and;Nautica;–;is;relocating
all;its;North;American;offices;to
expanded;headquarters;space;at
the;Empire;State;Building.
Other;new;tenants;include
•;Hong;Kong-based;global;supply
chain;managers;Li;&;Fung;
•;Swedish;construction;giant
Skanska;
•;LinkedIn,;the;rapidly;growing
business;networking;provider;
•;worldwide;air;carriers;Air
China,;Lufthansa;and;Turkish
Airlines;
•;Milan-based;accounting;firm
Funaro;;and
• Baum-Essex-Crossroad,
distributors;of;rainwear,
handbags;and;other;consumer
products.
“We’re;attracting;larger,
established;tenants,”;says;Anthony
E.;Malkin,;president;of;Malkin
Holdings,;which;directs;the
operation;of;the;building;on;behalf
of;Empire;State;Building;Co.;“High-
profile;companies;want;prestige
and;state-of-the-art;amenities,;and
a;space;that;reflects;their;values
on;energy;and;sustainability.;That’s
why;we’re;now;able;to;count
international;firms;such;as;Coty
as;tenants.”
At;the;newly;refurbished
Empire;State;Building,;tenants
are;drawn;to;more;than;the
Art;Deco;lobby;and;renovated
interiors.;They’re;also;attracted
by;the;improved;air;quality,;more
comfortable;workplace;and;ability
to;monitor;and;manage;their;own
energy;use.
Courtesy Empire State Building Company.
