Exploring a Deeper Green Design Firms Are Finding an Expanding Market for Sustainable Design, As Some Clients Are Willing to Push the Green Envelope by Gary J
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GREEN BUILDINGS DESIGN FIRMS Overview p. 2 // Green Markets by Sector p. 2 // The Top Five Green Design Firms by Sector p. 3 // Top 100 Green Design Firms Revenue, 2010-2013 p. 3 // Sustainable Infrastructure: Greening the Power Market p. 4 // How To Read the Tables p. 4 // The ENR Top 100 Green Design Firms List p. 5 // LUSH GREEN Designing the International School NUMBER05 of Kuala Lumpur, HOK achieved a Malaysian Green Building Index Platinum rating amid the challenges of the tropics. PHOTO COURTSY OF HOK OF COURTSY PHOTO Exploring a Deeper Green Design firms are finding an expanding market for sustainable design, as some clients are willing to push the green envelope By Gary J. Tulacz enr.com August 11/18, 2014 ENR 1 THE TOP 100 GREEN BUILDINGS DESIGN FIRMS OVERVIEW Green Design by Markets Commercial Health Care Offices $671.6 14.2% $933.3 19.7% Total 2013 Revenue = $4.73 billion Government (Measured $ millions) Offices $535.8 11.3% Non-Building Miscellaneous Sports, Education $687.8 14.5% Civic and $667.0 14.1% Other Entertainment Industrial and Buildings Airports $277.7 5.9% Manufacturing $194.4 4.1% $95.0 2.0% $137.4 2.9% Retail Multi-Unit $216.8 4.6% Telecom Residential Hotels $ % $44.2 0.9% $123.9 2.6% 146.0 3.1 SOURCE: MCGRAW HILL CONSTRUCTION / ENR. Green and sustainable design techniques are quickly create value around clients’ existing goals,” says Lance becoming a mainstay in the construction industry. Hosey, chief sustainability officer for RTKL. “As a What might have been a pipe dream 15 years ago is result, our green revenue nearly doubled between 2012 now reality for architects and engineers. Although the and 2013. Partly, this is due to tracking projects more U.S. Green Building Council’s Leadership in Energy carefully, but it is also due to offering a more persuasive and Environmental Design (LEED) standards still lead business case to clients.” much of this revolution, green building work also is “Our green Public demand is driving some of the increase in pushing into new boundaries beyond LEED standards. revenue nearly the market for sustainable design. The competitive The growing market for green design can be seen doubled nature of real estate has increased client demand for between 2012 in the results of ENR’s Top 100 Green Design Firms and 2013. sustainable design, says Kirk Teske, COO and chief list. As a group, the Top 100 generated $4.73 billion in Partly, this is sustainability officer for HKS. “Smart developers are design revenue in 2013 from projects registered with due to tracking leveraging traditional third-party certifications and and actively seeking certification from third-party our projects actively seeking the next big thing in sustainable design ratings groups under objective sustainable-design more, but also to differentiate themselves in the marketplace.” it is due to standards, such as the U.S. Green Building Council’s offering a more (USGBC) LEED standards. For the group, this rev- persuasive Green Regulations enue is a 13.3% increase from the $4.18 billion in 2012. business case Another driver is the growing number of jurisdictions Domestically, green design revenue rose 12.3%, to to our clients.” adopting sustainable-design regulations and codes. For $3.88 billion, in 2013 from $3.45 billion in 2012. The Lance Hosey, example, states and local jurisdictions are beginning Top 100 had $855.1 million in revenue from green Chief to adopt the Washington, D.C.-based International projects outside the U.S. in 2013, up 18.2% from Sustainability Code Council’s International Green Construction Officer, RTKL $723.2 million in 2012. Green design revenue rose in Code (IGCC). Further, many jurisdictions are incor- all buildings sectors except for government offices, porating the ASHRAE 189.1 total building sustain- which was off 2.5% domestically and 3.3% overall. ability standard into their building codes. Most designers believe the market for green build- “As sustainable design becomes increasingly codi- ing will continue to grow. “Whether through stricter fied through codes such as CalGreen [California law codes or the 2030 Challenge or Living Building Chal- for green building] and the IGCC-ASHRAE 189.1, lenge, the market has accepted that sustainable design the market is shifting from voluntary to mandatory and construction will continue to be innovation drivers measurements,” says Tom McDuffie, group vice pres- for the foreseeable future,” says Susan F. King, national ident of Jacobs. He says Jacobs is conducting feasibil- sustainable practice leader for Harley Ellis Devereaux. ity studies for clients in anticipation of the future adop- “If anything, we have seen clients become more tion of these codes at the local and state level. open to high-performance design, in large part because As green building codes become more common, we present it first and foremost as an opportunity to some designers believe some clients may not be satis- enr.com August 11/18, 2014 ENR 2 HARLEY ELLIS DEVEREAUX designed the recently opened West THE TOP 100 GREEN BUILDINGS DESIGN FIRMS #53 Branch Berkeley Library, Berkeley, OVERVIEW Calif., as a net-zero energy building. Top 5 Green Design Firms by Sector COMMERCIAL OFFICES EDUCATIONAL FACILITIES GOVERNMENT OFFICES $ MIL. $ MIL. $ MIL. RANK FIRM REVENUE RANK FIRM REVENUE RANK FIRM REVENUE 1 GENSLER 306.0 1 GENSLER 55.6 1 JACOBS 84.3 2 AECOM TECHNOLOGY CORP. 115.0 2 PERKINS+WILL 45.8 2 AECOM TECHNOLOGY CORP. 71.9 3 HOK 60.4 3 EYP ARCHITECTURE & ENGINEERING 32.7 3 SKIDMORE OWINGS & MERRILL LLP 48.4 4 ARUP 43.5 4 AECOM TECHNOLOGY CORP. 30.3 4 BLACK & VEATCH 35.1 5 PERKINS+WILL 41.9 5 LPA INC. 21.8 5 PAGE 33.2 HEALTH CARE MANUFACTURING & INDUSTRIAL MULTI-UNIT RESIDENTIAL $ MIL. $ MIL. $ MIL. RANK FIRM REVENUE RANK FIRM REVENUE RANK FIRM REVENUE 1 HDR 74.1 1 URS CORP. 37.9 1 WSP USA 15.0 2 HOK 65.6 2 CH2M HILL 19.2 2 WDG ARCHITECTURE 9.9 3 HKS INC. 55.5 3 HASKELL 7.5 3 ARCADIS U.S./RTKL 8.5 4 PERKINS+WILL 55.2 4 SSOE GROUP 6.0 4 DESIMONE CONSULTING ENGINEERS 7.9 5 NBBJ 52.6 5 GRESHAM, SMITH AND PARTNERS 5.2 5 SOLOMON CORDWELL BUENZ 7.6 RETAIL SPORTS, ENTERTAINMENT & CIVIC GREEN DESIGN FIRM REVENUE $ BIL. $ MIL. $ MIL. 2013 RANK FIRM REVENUE RANK FIRM REVENUE 2011 2012 $4.73 1 GENSLER 81.9 1 GENSLER 75.8 2010 $4.50 $3.74 $4.16 2 AECOM TECHNOLOGY CORP. 30.1 2 CH2M HILL 38.8 3 HOK 19.0 3 HKS INC. 33.2 4 STANTEC INC. 13.3 4 ARUP 22.3 5 PEI COBB FREED & PARTNERS ARCHITECTS 12.4 5 PERKINS+WILL 17.3 SOURCE: ENR. fied with merely meeting the new minimum standard. are becoming more diverse. “This is no longer the “I expect clients to seek ways to differentiate them- exclusive realm of the small environmental education selves from their competitors—let’s call it ‘out-green- building built for a non-governmental organization.” ing’—by pursuing new or stepped-up certification There are many clients that worry about the costs systems such as the WELL Building Standard and of building green, particularly at the higher certifica- Living Building Challenge,” says Teske. tion ratings. “The biggest challenge remains getting One change in the sustainable-design market is in “I expect to net zero within market-rate construction,” says the increasing number of available sustainable-design clients to seek Hosey. “We find that we can design for much lower systems and codes, many of which are being adopted ways to consumption, but closing the gap with renewables differentiate by state and local jurisdictions. For a long time, themselves always throws off the budget.” USGBC’s LEED rating system seemed to be the only from their Many designers say renewable-energy systems game in town. Over the past couple of years, clients competitors — remain costly investments that many owners are not increasingly have looked at LEED as the baseline, and let’s call it ‘out- yet willing to fund. “Solar, wind, and geothermal designers are beginning to push beyond LEED. greening’—by systems make much more sense when they are part of pursuing new “We are getting at least an inquiry per month on or stepped-up a net-zero-energy approach” that includes other high- net-zero-energy buildings, when, two years ago, the certification efficiency building systems and equipment, says Jeffrey thought was that net zero was something that would systems.” T. Gaines, director of sustainability and urban planning not be feasible for many years,” says Anica Landreneau, Kirk Teske, COO at Albert Kahn Associates. director of sustainable consulting at HOK. & Chief First-cost concerns and the cost of certifying a proj- “Net-zero energy is not nearly the audacious goal Sustainability ect under LEED can be offputting to some owners. it was a decade or two ago,” says Russell Perry, co- Officer, HKS So, alternate green building systems are gaining more director of sustainability at SmithGroupJJR. He con- traction. A major alternate certification program is the cedes that designing a net-zero building is still difficult, Green Globes certification program run by the Green requiring high levels of envelope, systems and opera- Building Initiative, Portland, Ore. tional efficiency. But he says the number and size of “With the new leadership from Jerry Yudelson, planned net-zero buildings is increasing, and the uses Green Globes may emerge as a low-cost, less-rigorous enr.com August 11/18, 2014 ENR 3 PERKINS EASTMAN designed the new Dunbar Senior High School in THE TOP 100 GREEN BUILDINGS DESIGN FIRMS #19 Washington, D.C., with geothermal OVERVIEW wells, photovoltaics and daylighting.