Expansion of "green" retrofits expected

Greening of existing “energy-hogging” buildings is expected to gain traction in coming years, says Windmill Development Group founder Jonathan Westeinde.

“The existing building stock is aging,” he told a seminar at the Construct Canada conference.

“It needs to be updated and renewed. I think retrofits are going to become more and more a part of all our businesses as we move forward.”

A study carried out in the United States in 2009 found the green retrofits market is growing more rapidly than the market for new green buildings. Green building currently comprises an estimated five to nine per cent of retrofit and renovation market activity. That is expected to grow rapidly in coming years.

Westeinde, also vice-president of Ledcor Renew, a venture focused on providing a one-stop solution for the greening and optimization of existing buildings, said constructing new green facilities is “a walk in the park” compared with retrofitting existing buildings.

His firm’s portfolio of new builds includes LEED platinum projects in Calgary, Victoria and Ottawa.

Green retrofits include the Oxfam Canada headquarters in Ottawa and the “One Planet” house renovation, also in Ottawa.

“When you do a new build, you are dealing with a piece of land and your risk is what is under the soil,” Westeinde said. “When you get into a retrofit, it’s what’s behind that wall, what’s up in that ceiling. There are a lot of unknowns.”

Westeinde said financing of green retrofits, however, is a challenge. Creative financing mechanisms need to be developed that factor sustainability into the value of a real estate asset.

A longer-term perspective also needs to be taken by building owners when it comes to return on investment in green retrofits, Westeinde said.

“The litmus test right now is a one and one-half or two-year payback period or (the attitude is) ‘we’re not going to do it.’ ”

Westeinde, also chair of the green building advisory council of the Centre for Environmental Cooperation, a NAFTA initiative, said building owners stand to reap “tangible benefits” in such areas as improved energy efficiency.

Green retrofits can restore the competitive edge of existing “energy-hogging” office buildings by reducing operating costs, he said.

“Every LEED Gold office tower that is going up in Toronto puts much more pressure on existing buildings to step up,” he said, noting that studies have indicated that buildings constructed to LEED standards have higher occupancy and rental rates than non-green facilties.

During the session, case studies of the two Ottawa green retrofit projects were presented by Rodney Wilts, a partner in Build Green Solutions, a Windmill Development Group company.

The Oxfam project converted a low-rise, 1950s building into modern, eco-friendly office space within a tight time frame and a limited budget. Operating costs were lowered and reliance on fossil fuels reduced as a result of the retrofit.

The project was one point shy of LEED Platinum.

“We had a great client who was willing to aim high, Wilts said. “We also had a team that understood sustainability.”

The single-family home renovation transformed an energy and water guzzling 1920s home into a showpiece of sustainability.