Charles Gallagher is Co-Founder of Macaryze and develops sustainable real estate in the United States and India. Climate change is global. Integrating sustainability and real estate is Charles expertise. Abundant, affordable, architecturally modern, energy efficient housing in walkable communities; just requires action. Integrating green recycled environmentally sensitive construction materials for e-commerce industrial and commercial workplaces with solar technology can be cost efficient. Wildfires, hurricanes and natural disasters, requires a thoughtful long term real estate response achieved by working together; regular people, government planners and sustainable real estate expertise. At Macaryze-we execute on development solutions; demonstrating leadership and clear thinking with action.
Commercial construction, just like many other industries, is becoming much more environmentally conscious as the impact that the developed world has on the environment worsens every year. Buildings account for 39% of C02 emissions in the United States and have a lifespan of 50-100 years during which they continually consume energy and produce CO2 emissions. If half of all new commercial buildings were built to use 50% less energy, it would save over 6 million metric tons of CO2 annually for the life of the buildings — the equivalent of taking more than 1 million cars off the road every year.
The rise in demand for green housing is being driven by a more environmentally-aware generation. Millennials have proven to be more aware of their eco-footprint than previous generations. They are opting for public transit and/or a more pedestrian-friendly lifestyle. If they do need to drive and can afford the higher price-point, electric or hybrid cars are often their choice. They also want their housing and workplaces to be green. Whether they are buying residential homes, looking to rent an apartment, or considering commercial space for other reasons, Millennials look to take advantage of the environmental and financial benefits of green properties. Most of the CO2 emissions from buildings in the US come from the combustion of fossil fuels to provide heating, cooling, and lighting and to power appliances and electrical equipment. Incorporating more efficient heating, cooling, lighting, water usage, and waste management can reduce a building’s emissions and save the owner or tenant financially over the lifespan of the building. And for owners and developers, sustainable building practices that minimize negative environmental effects appeal to potential tenants and even command higher rents.
Example California needs 3.5 Million New Homes. California ranked 49th among the United States in housing units per resident. This shortage has been estimated to be 3-4 million housing units. Lack of Affordable Housing-30 to 40% of annual income is spent on housing costs. From 2012 to 2017, San Francisco Bay area cities added 400,000 new jobs, but only issued 60,000 permits for new housing units. For California as a whole, from 2011 to 2016, the state added only one new housing unit for every five new residents
Example India:
- McKinsey Global Institute says over 350 Million people will move into Indian cities from its rural areas over the next three decades, thus surging the demand for real estate in these cities.
- As per a study done by Boston Consulting Group, rising affluence is the biggest driver of increasing consumption in India.
- McKinsey Global Institute states that private consumption will increase four-fold in India by the year 2025.
In summary, India’s burgeoning economy has consistently and increasing provided investment opportunities to American investors seeking higher yields. This trend will drastically increase as India continues to improve its infrastructure, the population continues to concentrate in urban areas, and ongoing changes to tax reforms make foreign investments more attractive.
Green construction is better for the environment and offers lower costs associated with energy, water usage, and waste management. In addition, there are cost benefits from increased worker productivity and safety, safer indoor air quality for tenants and homeowners (Covid 19), better longevity of the building, a smaller environmental footprint, etc. The delay in adoption of these practices was mostly attributed to high upfront costs, but green building materials are no longer cost prohibitive especially when life-cycle costs are considered
Green materials are more environmentally friendly, they are increasingly improving in quality and becoming more competitively priced. The production of concrete and steel accounts for up to 15% of the global greenhouse gas emissions annually. For reasons like this, builders are increasingly looking at more environmentally friendly and renewable alternatives such as Mass timber, Bamboo, Cork, Zero-VOC paint, Soybean-based insulation, Strawboard made from wheat, 100% recycled carpeting. The list goes on and on.
Green construction is better for our environment. It is less draining on the world’s natural resources and helps to provide cleaner and safer building sites for construction workers. The availability and affordability of green building materials is increasing. Green construction and facility maintenance result in reduced energy consumption and water usage and waste reduction.