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The Project at a Glance
Download| Building Information |
|---|
| Reed Smith LLP Tenant Name |
| Brandywine Realty Trust Building Owner |
| 1717 Arch Street, Philadelphia, PA Location |
| 16 years Lease Term |
| 117,000 square feet Project Size |
In February 2014, Reed Smith LLP, a leading international law firm, moved into 129,996 square feet on six floors in Philadelphia’s Three Logan Square, a 57-story tower. To reduce energy use and cost, make a positive impact on the environment, and improve the health and wellness of the 300 employees who work in the Philadelphia office, Reed Smith chose to participate in the Tenant Energy Optimization process when designing its new tenant space. The process is a proven, replicable approach that integrates energy efficiency into tenant space design and construction and delivers excellent financial returns through energy conservation.
| Floors 28 to 33 buildout | Projected results* |
|---|---|
| Energy reduction | 44.5% |
| Annual electricity reduction | 692,292 kWh5.9 kWh/SFkWh / kWh/SF |
| Total electricity savings over lease term | 11.1 GWh94.7 kWh/SFGWh / kWh/SF |
| Adjusted incremental implementation cost | $153,058 total$1.31/SFTotal / SF |
| Total electricity cost savings over lease term | $1,126,498 total$9.63/SFTotal / SF |
| NPV of project investment | $627,319 total$5.36/SFTotal / SF |
| ROI over lease term | 410% |
| IRR | 57.0% |
| Payback period (with incentives) | 2.2 years |
Executing the Process
Design and Construction
Building owner Brandywine Realty Trust was familiar with the Tenant Energy Optimization process and recommended its implementation. The building owner introduced Reed Smith to the early developers of the process and also helped the tenant assemble a team of energy and real estate experts, some of whom had past experience implementing the process in other tenant buildouts and could help facilitate its execution.
The energy team outlined energy performance goals that aligned with Reed Smith’s overall corporate sustainability targets and developed an extensive list of energy performance measures (EPMs) to be considered for implementation into the final buildout. 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).
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. Because the six floors included in Reed Smith’s buildout do not operate identically, not all EPMs were implemented on all floors.
| Energy performance measure (EPM) | Target area | Electricity reduction | Annual cost savings | Incremental first cost | Simple payback |
|---|---|---|---|---|---|
| High-efficiency lighting (0.84 W/SF) | Lighting | 14,310 kWh/yr4.9%kWh/yr / % | $1,455 | $0 | Immediate |
| Daylight harvesting | Lighting | 11,771 kWh/yr4.1%kWh/yr / % | $1,197 | $10,500 | 8.8 years |
| Bi-Level lighting control | Lighting | 7,626 kWh/yr2.6%kWh/yr / % | $776 | $1,083 | 1.4 years |
| Dimmable switching controls (25% dimming) | Lighting | 3,833 kWh/yr1.3%kWh/yr / % | $390 | $10,333 | 26.5 years |
| ENERGY STAR equipment | Plug load | 3,918 kWh/yr1.4%kWh/yr / % | $398 | $0 | Immediate |
| Occupancy sensor plug strips | Plug load | 2,698 kWh0.9%kWh / % | $274 | $3,500 | 12.8 years |
| Manually controlled quad outlets | Plug load | 2,859 kWh/yr1%kWh/yr / % | $291 | $2,000 | 6.9 years |
| After-hours outlet control | Plug load | 1,956 kWh/yr0.7%kWh/yr / % | $199 | $3,833 | 19.3 years |
| High-efficiency motors and variable drives on air-handling units | HVAC | 86,378 kWh29.8%kWh / % | $8,785 | $10,833 | 1.2 years |
| Companies and Roles |
|---|
| Watchdog Project manager |
| Wendy Fok Energy project director |
| Gensler Architect |
| Bala Engineers Engineer |
| Bliss Fassman Lighting designer |
| Kugler Ning Lighting Design Lighting designer |
| Quest Energy Energy modeler |
| Integral Group Energy consultant |
| Hunter Roberts Contractor and costing consultant |
| Brandywine Realty Trust Building owner |
Measurement and Verification
After completion of the buildout, Reed Smith enlisted an energy consultant to perform measurement and verification (M&V) to ensure that the implemented EPMs were performing as intended. For cost reasons, Reed Smith conducted M&V on only two of the six floors. M&V was conducted over the course of a ten-day period on floors 28 and 31, once the space was fully occupied and operational. Results from M&V show that the original energy model overestimated energy consumption by approximately 35 percent, largely because of overestimation of IT load and equipment plug loads. The model was recalibrated to more accurately reflect actual energy use. Despite the required adjustments to the energy model, all implemented EPMs were confirmed to be operating as designed.
Post-Project Actions
Reed Smith employees have noted that there was a small adjustment period to the different functionalities of some of the lighting controls but that the new space is more conducive to high productivity and comfort.
“Generally, there is a strong sense of pride in playing a part in such a meaningful project, and the employees are proud to occupy facilities which strive to use forward-thinking energy conservation protocols,” said Pat Hiltibidal, Reed Smith’s firmwide chief of office services.
The experience gained from implementing the Tenant Energy Optimization process within Reed Smith’s Philadelphia office space created a more intense focus and serious consideration of the financial returns that can be realized through investments in energy efficiency. As a global firm, Reed Smith will use the Philadelphia project to inform the design of future office spaces.