Newsmaker: Peter Morris

Image courtesy Peter MorrisProponents of green buildings have a long list of persuasive arguments they can use to convince clients and developers that green is the way to go: Build green, and your employees will be healthier, happier, and more productive! Build green, and you will use less water and energy, benefit your local environment, and promote global environmental responsibility! Build green, and you will save money over the long term!
But with U.S. economy in shambles, the question looms: How will the recession affect the green-building market? RECORD put the question to Peter Morris, principal of the construction consultancy Davis Langdon. Morris heads up the firm’s research initiatives. 
Anya Kaplan-Seem: The economic recession we’re in is having a big impact on the building industry; what do you predict its effect will be on the green-building sector in particular?
Peter Morris: I would say there are two main threads here. The first is the short-term impact: How is the immediate effect of the markets going to change investment strategies? The second is how the current shift will affect long-term planning strategies. In the short term, I think that green will be impacted in much the same way that all investments are, which is to say that I don’t expect green buildings to be singled out for special treatment.
AKS: In the past it’s been possible to make the argument that an initial capital outlay for green features is economically worthwhile because it will save money and resources over time. Does that argument lose potency in a recession economy?
PM: Yes and no. If you can¹t invest in a premium product, you may make do with a product that's not as good. But I think that¹s going to be less of an issue both because the premium to go green is relatively small if present at all, and also because most building investors recognize that their investment choice is going to be around for an awfully long time.
If we buy the wrong TV we’re saddled with it for a few years. If we buy the wrong sandwich we’re only saddled with it for the afternoon. But if we buy the wrong building, we’re saddled with it for far longer. What’s happening now is that people are recognizing that building green creates long-term value, and that is a little different than long-term savings. It’s the equivalent of the old granite countertops—people can’t put a number on something like that, but they sense that it’ll help their resale value.