Throughout the interview, Geller, Kalke and Rennie alluded to a number of strategies that a developer could adopt to both create value and promote sustainable objectives. Though not a comprehensive survey of the range of possibilities open to developers, this does serve to illustrate how developers with different strengths and experiences can approach the sustainable building market from various angles.
In the first strategy, the developer builds a very high quality building employing cutting-edge sustainable building principles. This need not necessarily involve complex technical or 'gimmicky' features, since the target market is a niche segment of informed, environmentally aware and affluent residents or occupants who seek out and can afford a premium product. Such a clientele understands that the long-term energy savings accrued in the building will ultimately offset the increased capital cost, and appreciates the wider social and environmental benefits such buildings can offer.
Harold Kalke has made a success of such an approach, and he broadcasts his uncompromising attitude of simply building the best building he can.
"I don't have any time for trying to get CMHC or Hydro or any municipality... to give me bonuses for something that I want to do as a developer," he says. "I focus on the occupant ... It's a privilege, I should say, to be able to spend extra money to set apart this product from any other product in the marketplace."
In terms of community context, a premium sustainable developer may need to be prepared to allocate resources to promote other 'sustainable community' objectives to balance the affluent niche group who are providing the funding. In the case of Victoria's Shoal Point development, for example, the developer of a premium sustainable building spent a further $1million on promoting wider community development, including nurturing local sustainable businesses and providing on site low-income housing units.
The challenge for a developer adopting this strategy is to ensure that there is sufficient available 'target demographic' to make the undertaking financially viable.
A second strategy, proposed by Bob Rennie, is what we could call the 'baby steps' approach. In this strategy, the developer's target market is a mainstream one that could be 'sold' on certain readily understood sustainability features that can be offered at little or no premium but that are nevertheless perceived as being valuable by the client.
"The problem that municipalities have is how do you get a broader demographic, how do you do it downtown with a ten percent premium [instead of a much higher one]?" Bob asks. "To just target the demographic that's there now, I don't think there's enough in each community without an awareness program".
As a realtor, Bob sees 'sustainable' features as being only as worthwhile as they are perceived to be by the market. "[You need] to demonstrate to the consumer what he's got, [if not] then don't bother putting it in because he won't know he's got it. I want everything you've got in the building demonstrated. ... it's liveability, it has to be saving money long term, it has to be fresh air, it has to be something that's very tangible and real... it's like I'm buying a Volvo because it's safe."
A third approach is to work with organizations prepared to take risks and 'leave some money on the table' in order to find the 'right thing' to do to nurture the sustainable building market. Since the benefits associated with sustainable buildings are often public benefits, public institutions (such as federal/provincial/local governments, universities) may be in a position to support such an approach. Other potential partners could include companies with a vested interest in emerging sustainable technologies (eg equipment manufacturers or energy service companies) or organizations that may benefit from the association (eg corporations, NGOs etc).
As a 'public good' product, such projects may incorporate other features that would be outside the scope of the premium developer. For example, Michael Geller's Burnaby Mountain Project has backers who are interested in trying new things to help others discover which technologies and design approaches work and which don't. Rather than a single building, Geller is helping to develop a whole community, aimed at mixed income residents, in a way that incorporates features that may or may not be presently supported by a market. For example, all his residential units have composting toilets; some have a grassed layer of earth on the roof to help buffer stormwater flooding peaks. [features of sustainable buildings]
However, Geller is also keen to maximize the value of the property he's developing. Novel features will be introduced only if he believes that they will be recognized, over the longer term, as having value. Michael explains:
"I, like Harold, spend a lot of time listening to people telling me about all the quote, energy efficient, or sustainable features that I should be incorporating into our community, and I constantly try to apply what I'll call the 'Bob Rennie Test' to every one, which is, 'is this ultimately going to repay itself, or add value?' Because if it won't, if it's going to deter marketability, no matter how noble it is, we'll be very reluctant to go ahead with it".
As more organizations begin to adopt a "social responsibility" culture, or otherwise become more inclined to 'lead by example', more opportunities may arise for developers interested in promoting sustainable features to obtain support in this way.
A fourth strategy requires the least commitment by a developer, but may nevertheless help to promote public interest in sustainability features that may ultimately lead to enhanced value in the market. It involves simply complying with legally mandated minimum requirements, but advertising them to clients as qualities of the building. Although this may be exploited for cynical purposes, this at least has the benefit of introducing clients to the vocabulary of sustainable building properties, and may ultimately lead to prospective buyers discriminating on this basis, thereby adding value to the market.
Bob Rennie sees this approach as a vital part of creating awareness in the general market for residential buildings.
"somehow, [we need to be] getting developers to talk about the little bit of sustainability in their development," he says. "there is value [in this], and the consumer does want to be told about these things, but softly."