Green Building Is Growing Rapidly in the Retail and Hospitality Sectors, According to New McGraw Hill Construction SmartMarket

   Green Building Is Growing Rapidly in the Retail and Hospitality Sectors,
         According to New McGraw Hill Construction SmartMarket Report

PR Newswire

NEW YORK, June 25, 2013

NEW YORK, June 25, 2013 /PRNewswire/ --According to a new report released
today by McGraw Hill Construction in partnership with Waste Management,
entitled Green Retail and Hospitality SmartMarket Report: Capitalizing on the
Growth in Green Building Investments, owners of retail and hotel
establishments are reporting growing levels of green building activity planned
over the next two years. The report is based on a study of 79 retail, 30 hotel
and 22 restaurant owners conducted in 2013 by McGraw Hill Construction. 

The study defined a green building project as one built to LEED or another
recognized green building standard, or one that is energy-efficient,
water-efficient, and improves indoor air quality and/or engages in material
resource conservation. Notably, by this definition, the percentage of retail
owners that have taken a green approach in over half of their building
projects rose from 18% in 2011 to 38% this year, and is expected to rise to
52% by 2015. Hotel owners show an even greater investment in green
building—the percentage of those owners that have taken a green approach in
over half of their building projects rose from 28% in 2011 to 48% in 2013, and
is projected to rise to 64% by 2015.

According to the study, owners are also committing to green operations and
maintenance (O&M) practices, with nearly two thirds (65%) of retail owners
reporting high green O&M activity, and an even stronger 73% of hotel owners
reporting the same.

Owners note strong business benefits from green building investments and green
O&M practices, helping to drive this growth. Most notably, they report the
following when comparing the performance of their green buildings to
traditional buildings:

  oAnnual operating cost reductions: Reported by 66% of retail owners (at an
    average reduction of 8%) and by 51% of hotel owners (at an average
    reduction of 1%)
  oEnergy use reductions: Reported by 58% of retail owners and 67% of hotel
    owners at an average reduction of 15% for both
  oAsset value increases: Reported by 61% of retail owners (at an average
    increase of 7%) and by 71% of hotel owners (at an average reduction of
    11%)
  oROI increases: Reported by 67% of retail owners (at an average increase of
    8%) and by 85% of hotel owners (at an average reduction of 14%)

"Green building has taken such hold in the industry that even sectors with
unique challenges, such as retail and hospitality, are making stronger
investments," said Harvey Bernstein, vice president, Industry Insights and
Alliances for McGraw Hill Construction. "Clearly the benefits that owners are
reporting are key reasons for their green building investments, and as they
find better ways to measure those impacts and quantify the value to their
sales velocity and to the well-being of their staff, customers and guests, we
expect even more rapid engagement in green."

There are many factors driving these owners toward adoption of green building
investments and practices. While operating cost reductions are the most highly
reported reason for going green (by 66% of retail owners and 73% of hotel
owners), there are several other factors considered highly important in their
decision-making process:

  oUtility rebates: according to 63% of retail and 70% of hotel owners
  oProtecting/enhancing brand: according to 51% of retail and 73% of hotel
    owners (for hotel owners, this is as important as operating cost
    decreases)
  oImproving ROI: according to 52% of retail and 67% of hotel owners

However, business factors alone do not account for the increasing commitment
to green building. Forty four percent of retail owners and 50% of hotel owners
find that human impact benefits have also been an important factor in
encouraging their decision to invest in green building projects. Seventy
percent of retail owners see meeting government regulations and standards as a
key factor in their decision to do green projects in the future, and 70% of
hotel owners consider water use reduction an important factor in that
decision. In addition, over half in both sectors report that improved
environmental health and well-being has a strong impact on their decision to
make future green investments.

Key factors posing challenges to increases in green building investments
include higher initial implementation costs for green practices (47% retail,
43% hotel); budgeting challenges (37% retail, 40% hotel); and getting
corporate leadership buy-in (30% retail, 50% hotel). However, it is notable
that no challenge was reported as having a high impact by more than half the
respondents.

While energy efficiency is a key factor behind engagement in green building
investments and practices, other aspects of green building also hold weight.
For retail owners, 62% report recycling and waste management of critical
importance; 63% of hotel owners report the same. These owners are also placing
green building requirements on their contractors and suppliers—77% of retail
owners and 73% of hotel owners say they require green waste handling practices
from their contractors, and nearly the same percentages report requiring
recycling and composting from their O&M contractors.

"These findings suggest that consumers feel better when they purchase a
product from a company they know is contributing to a better planet," said
Jane Sumner, vice president, Waste Management's Food & Retail and Construction
segments. "Waste Management has been transforming its business to tap into
this growing market and we are helping owners in the retail and hospitality
space to do the same."

The report also includes opinions from the construction community. In fact,
contractors are reporting increased requests from their customers for green
projects, reinforcing the findings reported by the owners.

To download the full Green Retail and Hospitality SmartMarket Report:
Capitalizing on the Growth in Green Building Investments, please visit
http://analyticsstore.construction.com/index.php/retailsmr13.html?sourcekey=SMRPRES.

About McGraw Hill Construction:
McGraw Hill Construction provides essential data, news, insights, and
intelligence to better inform construction professionals' decisions and
strengthen their market position. McGraw Hill Construction's data, analytics,
and media businesses – Dodge, Sweets, Architectural Record, and Engineering
News-Record – create opportunities for owners, architects, engineers,
contractors, building product manufacturers, and distributors to strengthen
their market position, size their markets, prioritize prospects, and target
and build relationships that will win more business. McGraw Hill Construction
serves more than one million customers through its trends and forecasts,
industry news, and leading platform of construction data, benchmarks, and
analytics, including Dodge MarketShare™, Dodge BuildShare® and Dodge
SpecShare®. Construction data is available for North American and global
markets. To learn more, visit www.construction.com.

About McGraw Hill Financial:
McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a
leader in credit ratings, benchmarks and analytics for the global capital and
commodity markets. Iconic brands include: Standard & Poor's Ratings Services,
S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, McGraw Hill
Construction and Aviation Week. The Company has approximately 17,000 employees
in 27 countries. Additional information is available at www.mhfi.com.

About Waste Management, Inc.:
Waste Management, Inc., based in Houston, Texas, is the leading provider of
comprehensive waste management services in North America. Through its
subsidiaries, the company provides collection, transfer, recycling and
resource recovery, and disposal services. It is also one of the largest
residential recyclers and a leading developer, operator and owner of
waste-to-energy and landfill gas-to-energy facilities in the United States.
The company's customers include residential, commercial, industrial, and
municipal customers throughout North America. To learn more, visit www.wm.com.

Media Contacts:
Kathy Malangone, Senior Director, Marketing Communications,
McGraw-Hill Construction, +1 212-904-4376,kathy.malangone@mhfi.com

Robert Kidwell, Communication Manager
Waste Management, +1 713-512-6381,rkidwell@wm.com

SOURCE McGraw Hill Construction

Website: http://www.construction.com