Kilroy Completes Significant Energy Saving Projects to Achieve Carbon Neutral Operations at Sunset Media Center
LABBC CASE STUDY
PROPERTY OWNER
Kilroy Realty
PROPERTY TYPE
Office
SQUARE FEET
323,922
Sponsoring Organizations
12.9%
Energy Reduction Since Ownership
8.9%
Energy Reduction in 2020
2021 Innovation Awards: Energy Performance Finalist
“Despite the challenges brought by 2020, we did not shy away from our environmental stewardship and instead forged ahead to not only meet but exceed our environmental and social goals throughout the portfolio, including at Sunset Media Center. We consider this to be our biggest accomplishment of 2020.”
VAISHALI SAMPAT
Manager, Sustainability and Corporate Social Responsibility | Kilroy Realty Corporation
CHALLENGE
Los Angeles real estate investment trust Kilroy Realty Corporation is a demonstrated leader in commercial real estate sustainability. In addition to energy and water reduction, the company continuously seeks opportunities to reduce greenhouse gas emissions and temper its impact on climate change. The company recently reached its goal of achieving carbon netural operations for directly managed properties by the end of 2020 and is now focused on scope 3 emissions by targeting the embodied carbon of construction materials and tenant-controlled energy usage
In addition to its overall portfolio achievement, Kilroy recently completed two significant energy saving projects at Sunset Media Center (SMC), a 323,922-square-foot Hollywood office property built in 1971. The company, which acquired the property in 2013, completed a two-year LED lighting retrofit project and a duct-sealing and HVAC optimization for the property in 2020. Before that, SMC had undergone a myriad of energy and water management projects, including a large window film installation and retro-commissioning.
Water and energy efficiency are staples of Kilroy’s sustainability program, creating savings that can be passed along to tenants or act as a buffer against rising utility costs to protect tenants. As California continues to experience extreme wildfires, for example, Kilroy expects increases in energy costs as state utilities work to make their infrastructure safer.
STRATEGY
Sustainability is deeply embedded in all aspects of Kilroy’s culture and operations. Many departments collaborate to achieve organizational goals and maintain the company’s position as leaders in the industry, including property management, engineering, IT, legal, human resources, finance and accounting and risk management.
In 2020, the company performed a thermal imaging survey and identified numerous duct leakage points throughout the HVAC system, including the main trunk and air handler units. Sealing those leaks allowed for the HVAC system to operate more efficiently by reducing the amount of air lost and keeping the temperature uniform throughout the building. More recently, Kilroy had a data analytics software installed in SMC’s building automation system with the purpose of monitoring the building’s HVAC system for inefficiencies and delivering pinpointed causes, effects and resolutions through a report analysis for a period of two years.
Kilroy benefits from a robust building health program focused on indoor air quality and active design features. When COVID-19 hit, the company had the infrastructure and network in place to create a best-in-class response program for SMC. Kilroy collaborated with Underwriter’s Laboratory, which provided a Pandemic Response Module, to perform onsite air, water and germ testing, as well as a complete review of the property’s janitorial, engineering and operational programs related to disease transmission.
IMPACT
In 2020, Kilroy achieved carbon neutral operations for its directly managed assets and completed a climate risk analysis of all assets, which it has integrated into its Emergency Response Programs and is working to incorporate into due diligence packages for its acquisitions. In recognition of this sustainability work, the company has maintained longstanding status as a GRESB Global Listed Office Leader and ENERGY STAR Partner of the Year. This year, the company also earned recognition for its focus on social elements, including Best in Building Health by the Center for Active Design and was included for the first time on the Bloomberg Gender Equality Index.
Over the seven years since acquiring SMC in 2013, Kilroy has realized an 8.9% decrease in energy consumption and a 14% decrease in water consumption at the property. The company’s duct-sealing project at SMC, which cost Kilroy $211,000, is projected to save 374,488 kWh annually, while the HVAC optimization project cost Kilroy $15,000 and is projected to save 360,527 kWh. The Hollywood property, which benefits from limited landscaping and drought tolerant plants, also saw a reduction in property water consumption of 22% from 2019 to 2020. These projects, in conjunction with numerous previous energy and water upgrades, earned the building ENERGY STAR, LEED-EBOM Gold and Fitwel certifications.
In response to COVID-19, Kilroy earned Underwriter Laboratory’s Pandemic Response Verification for SMC and made enhancements to health and safety measures, including installing touchless systems and opening stairwells, which serve to not only promote physical activity but also reduces congestion in elevators and lobbies. As the pandemic continues into 2021, Kilroy intends to continue seeking opportunities to reduce energy and water use, drive down greenhouse gas emissions and build out social programs.
