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    Case Study Coty Inc.

    The Project at a Glance

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    Building Information
    Coty Inc.
    Tenant Name
    Empire State Realty Trust
    Building Owner
    350 Fifth Avenue, New York, NY
    Location
    17 years
    Lease Term
    80,000 square feet
    Project Size

    In 2012, Coty Inc.—a global leader in beauty products—expanded its presence in the Empire State Building by nearly 160,000 square feet, leasing floors 16 through 19 as it consolidated its New York operations and U.S. headquarters into the tower. With this new space, Coty now occupies 320,000 square feet on floors 14 through 19, cementing itself as one of the property’s largest and best-known tenants.

    One of the primary reasons Coty chose to lease space in the Empire State Building was because of the building owner’s demonstrated commitment to energy efficiency. The Empire State Building underwent an entire building retrofit that was completed in 2011, which included a refurbishment of all 6,514 windows, installation of insulation behind all radiators, a chiller plant retrofit, new building management systems controls, new revenue-grade meters serving the entire building, and a web-based tenant energy management system. Coty’s lease at the Empire State Building required that the tenant improvements include certain lighting, plug, and cooling energy performance measures (EPMs) that produce a five-year (or shorter) payback.

    Floors 16 and 17 buildoutProjected results*
    Energy reduction30.7%
    Annual electricity reduction243,449 kWh1.5 kWh/SFkWh / kWh/SF
    Total electricity savings over lease term4.1 GWh26.0 kWh/SFGWh / kWh/SF
    Adjusted incremental implementation cost$113,618 total$0.71/SFTotal / SF
    Total electricity cost savings over lease term$716,148 total$4.49/SFTotal / SF
    NPV of project investment$372,105 total$2.34/SFTotal / SF
    ROI over lease term328%
    IRR44%
    Payback period (with incentives)2.7 years
    *Based on models calibrated through a post-occupancy Measurement & Verification Process. See the third resource guide, Measurement & Verification: Post-Occupancy for more information.

    Executing the Process

    Companies and Roles
    Gardiner & Theobald
    Project manager
    Wendy Fok
    Energy project director
    Gensler
    Architect
    CFS Engineering
    Engineer
    Lighting Workshop
    Lighting designer
    Quest Energy
    Energy modeler
    Integral Group
    Energy consultant
    Skanska
    Costing consultant
    Benchmark Builders
    Contractor
    Viridian Energy
    Energy incentive consultant
    Empire State Realty Trust
    Building owner
    JLL
    Owner’s representative

    Design and Construction

    When the time came to design and construct the first two floors of expansion space, Coty decided to follow the Tenant Energy Optimization process—a proven, replicable approach that integrates energy efficiency into tenant space design and construction and delivers excellent financial returns through energy conservation. Coty’s leasing broker, Cassidy Turley, and project manager, Gardiner & Theobald, suggested the process as a way to meet lease requirements and reduce energy costs.

    “The greatest value added to the client is that they literally save money,” says Gardiner & Theobald director of project management Tamela Johnson. “There’s no question. In addition, they’re saving energy for our planet. Who doesn’t want to do that? Going forward, I will speak to all my clients about it now that I understand the process. It’s going to become easier and easier, and I think it will become the new industry standard.”

    Working with an energy project team that was assembled to help execute the process, Coty outlined six important factors for its buildout, which aligned with its more general targets of reducing energy demand, increasing efficiency, and ensuring the best possible environment for its employees:

    • Aesthetics: offer a high-end appearance, especially where clients visit and confer;
    • Demanding occupants: increase controllability and individual comfort;
    • Acoustics: reduce unwanted noise;
    • Open-office plan: seat majority of employees in an open-office configuration;
    • Windows: minimize the number of windows committed to mechanical intake and exhaust; and
    • Ventilation in test areas: minimize odors and fumes from product test areas through a dedicated ventilation system.

    Using energy performance modeling, incremental costing information, and cost savings projections, the team was able to choose a package of EPMs that would meet the energy and financial goals of the company. EPMs are technologies and systems that aim to reduce energy use through efficiency and conservation. They are also frequently referred to as energy conservation measures (ECMs).

    The EPMs that were implemented in Coty’s space on floors 16 and 17 include the following:

    Energy performance measure (EPM)Target areaElectricity reductionAnnual cost savingsIncremental first costSimple payback
    High-efficiency lighting (0.77 W/SF)Lighting113,011 kWh/yr14.3%kWh/yr / %$19,555$91,6404.7 years
    Daylight harvestingLighting27,641 kWh/yr3.5%kWh/yr / %$4,783$21,6414.5 years
    Variable air volume (VAV) air-handling unitsHVAC62,462 kWh/yr7.9%kWh/yr / %$10,808$0Immediate
    Demand-controlled ventilation (DCV)*HVAC(279) kWh/yr0%kWh/yr / %($48)$175,120Not applicable
    Eliminate noise traps on air-handling unitsHVAC4,142 kWh/yr0.5%kWh/yr / %$717$0Immediate
    ENERGY STAR equipmentPlug loads36,472 kWh4.6%kWh / %$6,311$0Immediate
    *DCV is designed to control the exchange of fresh or outside air. This EPM may improve indoor air quality and occupant comfort and does not always result in energy or cost savings if DCV equipment is controlled primarily by base building energy or not closely monitored

    Measurement and Verification

    After completion of the buildout, the energy team returned to Coty’s space to perform measurement and verification (M&V) to ensure that the implemented EPMs were performing as intended. M&V was conducted over the course of a ten-day period, once the space was fully occupied and operational. The M&V period revealed that the lighting and plug load EPMs were operating as intended. The EPMs related to heating, ventilating, and air conditioning (HVAC), however, required further investigation or modifications. DCV savings are a result of heating and cooling savings from the reduction in outdoor ventilation air. Because cooling and heating energy for ventilated spaces is provided by the building’s central plant, minimal impact was observed for tenant electric consumption. Metered data showed no decrease in HVAC power during unoccupied hours, indicating that the air handlers and VAV boxes were operating 24/7. The project team recommended that Coty verify that air conditioning and ventilation is required during all hours, and if not, the fan schedule should be adjusted to shut down during unoccupied hours.

    Post-Project Actions

    Empire State Realty Trust encourages tenants to use the Tenant Energy Optimization process in all new buildout projects. Coty used its experience implementing the process on floors 16 and 17 to inform the buildout of subsequent space in the Empire State Building.