Abstract
Proponents of sustainable development argue green buildings provide operational cost savings, resource conservation and recycling, and increased indoor air quality. Industry skeptics argue benefits associated with green buildings don’t outweigh the additional upfront costs. This thesis is a cost benefit analysis of Loftworks’ decision to pursue LEED certification of 2600 Capitol Avenue in Sacramento, CA. Additional hard and soft costs totaled 3.10 percent above baseline for the as-built LEED-Gold office building. The quantifiable savings came from an efficient HVAC system and savings average $66,900 per year. Upfront costs and long-term benefits associated with LEED certification of 2600 Capitol Avenue produces a net present value (NPV) of $482,900. The additional LEED investment pays for itself in less than three years and the efficient HVAC system has a 25-year functional life if properly maintained.