Ryan Companies Earns LEED-NC Gold For FBI’s Phoenix Office
The GSA FBI Phoenix Division Office Building has been awarded LEED-NC (New Construction) Gold, according to its developers, U.S. General Services Administration (GSA) and Ryan Companies US Inc. Completed in February 2012, the 225,000-sq.-ft. facility sits on 12.2 acres at 21711 North 7th Street in Phoenix, Ariz.
“We are extremely proud to be involved in a project where, in addition to security, energy efficiency and sustainability were key design goals,” John Strittmatter, president of Ryan’s Southwest region, said in a statement. “To be a part of the team that achieved this prestigious designation is an honor.”
In working toward LEED-NC Gold certification, the design and construction team incorporated features including energy-efficient mechanical systems which provide a 30 percent reduction in energy usage over the current City of Phoenix building code requirements and the use of low-water plumbing fixtures which achieve a 40 percent reduction in building water usage. In addition to energy- and water-efficient systems and fixtures, Ryan used Energy Savings Performance utility agreements to achieve, maintain and/or exceed the Energy Star benchmark.
Additional sustainable features include desert-themed landscaping, which was utilized across the entire site and will reduce landscape water usage by 50 percent. The use of desert cobble in lieu of 100 percent decomposed granite produced a more natural native desert appearance and reduced transportation costs by reducing the amount of material imported to the site.
Ryan developed and constructed the new, build-to-suit class-A office building for the Government Services Administration with the FBI serving as the anchor tenant. The FBI consolidated four of its Phoenix locations into the new building and, in doing so, increased cost savings and organizational efficiencies. The building was also named a Design Excellenc” project by the GSA, which recognizes excellence in public architecture, engineering and construction.
BOMA 360 Performance Program Expands in Second Quarter of 2013
The Building Owners and Managers Association (BOMA) International conferred the BOMA 360 Performance Program designation upon properties in major commercial real estate markets across the U.S., including Atlanta, Boston, Chicago, Dallas, Los Angeles and Washington, D.C., in the second quarter of 2013.
Launched four year ago, the BOMA 360 Performance Program evaluates commercial properties in six major areas: building operations and management; life safety/security/risk management; training and education; energy; environment/sustainability; and tenant relations/community involvement. Since the program’s inception in 2009, more than 600 commercial properties demonstrating best practices in these areas have earned the prestigious BOMA 360 label.
Earning a BOMA 360 designation offers buildings tangible results, measured through higher tenant retention and satisfaction scores, higher rental rates and documented operations and management savings and efficiencies as reported in designee surveys and by Kingsley Associates and CoStar.
The new class of BOMA 360 buildings includes:
1275 Peachtree
Atlanta, Ga.
Owned by: Boys and Girls Clubs of America
Managed by: Cassidy Turley Commercial Real Estate Services, Inc.
179 Lincoln Street
Boston, Mass.
Owned by: Invesco IF IV Operating Tenant, LLC
Managed by: CBRE/New England
1828 L Street
Washington, D.C.
Owned by: Tower Companies
Managed by: Tower Companies
1899 Pennsylvania Avenue NW
Washington, D.C.
Owned by: 1899 Penn Owner, LP
Managed by: Paramount Group, Inc.
2100 McKinney
Dallas, Texas
Owned by: Metropolitan Life Insurance Company
Managed by: CBRE, Inc.
300 South Riverside Plaza
Chicago, Ill.
Owned by: South Riverside Building, LLC
Managed by: Means Knaus Partners
3100 Weslayan
Houston, Texas
Owned by: 3100 Weslayan Limited Partnership
Managed by: Hartman Income REIT
3391 Town Point
Kennesaw, Ga.
Owned by: KSU Town Point Real Estate Foundation, LLC
Managed by: Cassidy Turley Commercial Real Estate Services Inc.
400 TownPark
Lake Mary, Fla.
Owned by: Piedmont Office Realty Trust
Managed by: Piedmont Office Management
425 Eye Street, NW
Washington, D.C.
Owned by: 425 Eye Street, NW, LP
Managed by: Paramount Group
485 Lexington Avenue
New York, N.Y.
Owned by: SL Green Realty Corp.
Managed by: SL Green Realty Corp.
500 Office Center Drive
Fort Washington, Pa.
Owned by: G&I VI 500 Office Center FE LLC
Managed by: Brandywine Realty Trust/BDN Brokerage LLC
501 Office Center Drive
Fort Washington, Pa.
Owned by: G&I VI 501 Office Center FE LLC
Managed by: Brandywine Realty Trust/BDN Brokerage LLC
650 Townsend St.
San Francisco, Calif.
Owned by: Big Dog Holdings, LLC
Managed by: Cushman & Wakefield of California
7350 Tilghman Street
Allentown, Pa.
Owned by: Iron Run Northlight II Associates LLC
Managed by: Brandywine Realty Trust/ BDN Brokerage LLC
9000 Midlantic
Mt. Laurel N.J.
Owned by: Brandywine Operating Partnership
Managed by: Brandywine Realty Trust
ATRIA Corporate Center
Plymouth, Minn.
Owned by: Talcott III ATRIA, LLC
Managed by: Cushman & Wakefield | NorthMarq
Beaird Tower
Shreveport, La.
Owned by: Beaird Tower L.C.
Managed by: Vintage Realty Company
Building 100 (Kimberly-Clark Professional Headquarters)
Roswell, Ga.
Owned by: Kimberly-Clark Corporation
Managed by: Cassidy Turley Commercial Real Estate Services Inc.
Charlotte FBI Field Office
Charlotte, N.C.
Owned by: USGBF FBI Charlotte LLC
Managed by: USAA Real Estate Company
Constellation Place
Los Angeles, Calif.
Owned by: Constellation Place LLC
Managed by: Constellation Place, LLC
Liberty Station Building 902
San Diego, Calif.
Owned by: Kilroy Realty Corporation
Managed by: Kilroy Realty Corporation
LibertyView
Cherry Hill, N.J.
Owned by: Brandywine Realty Trust
Managed by: Brandywine Realty Trust
One Greenwood Square
Bensalem, Pa.
Owned by: G&I VI One Greenwood FE LLC
Managed by: Brandywine Realty Trust/BDN Brokerage LLC
One Windsor Plaza
Allentown, Pa.
Owned by: Atlantic American Land Development
Managed by: Brandywine Realty Trust/BDN Brokerage LLC
River Corporate Center
Tempe, Ariz.
Owned by: Piedmont Office Realty Trust
Managed by: Piedmont Office Management
Siemens Industry Inc.
Buffalo Grove, Ill.
Owned by: Inland Diversified Real Estate Services LLC
Managed by: Siemens Real Estate/CBRE
The Millennium Building
Washington, D.C.
Owned by: Tower Companies
Managed by: Tower Companies
Two Greenwood Square
Bensalem, Pa.
Owned by: G&I VI Two Greenwood FE LLC
Managed by: Brandywine Realty Trust/BDN Brokerage LLC
UPS Supply Chain Solutions
Alpharetta, Ga.
Owned by: United Parcel Service
Managed by: Cassidy Turley Commercial Real Estate Services Inc.
Jersey City’s First LEED Multifamily Reaches Half Occupancy
Madox, Jersey City, N.J.’s first LEED Silver building, has leased nearly 100 of its 131 luxury apartments.
Located in Jersey City’s historic Paulus Hook district, Madox has made a strong impression with renters, with nearly 100 upscale apartments having been reserved. Almost 50 percent of the seven-story building’s 131 homes are now occupied and 70 percent of the building is reserved, a number that’s expected to grow significantly within the next month.
Situated at 198 Van Vorst Street, just blocks from PATH Trains, ferry service to New York City and the Hudson-Bergen Light Rail, Madox features a collection of studio, one- and two-bedroom residences, ranging from 480 sq. ft. to 1,312 sq. ft. priced from about $1,800. Some one-and two-bedroom homes also feature additional dens.
Along with its many luxury amenities, Madox will also boast a 100 percent smoke-free environment, a unique lifestyle feature that is one of the first of its kind in New Jersey and a rarity in the New York Metropolitan marketplace.
Mack-Cali Parsippany Campus Achieves LEED Silver
Mack-Cali Realty Corp. announced that 4 Gatehall Drive in Mack-Cali Business Campus in Parsippany, N.J., has been LEED Silver certified. 4 Gatehall Drive joins other Mack-Cali properties—105 Eisenhower Parkway, Eisenhower/280 Corporate Center in Roseland; 8 Campus Drive, also in Mack-Cali Business Campus; and Liberty Corner Corporate Center, 106 Allen Road, in Bernards Township—as one of the few multi-tenanted office buildings in the state to achieve this prestigious award.
Highlights of the building’s sustainability achievements include:
- An ENERGY STAR rating of 90, which places the building in the top 10 percent of similar buildings in terms of energy efficiency
- Use of highly efficient plumbing fixtures, providing water savings of approximately 16 percent
- Recycling efforts resulting in a 35 percent diversion rate of recyclables from landfill of ongoing consumable waste and a 100 percent diversion rate of durable goods from entering the waste stream
- Recent building renovations using over 50 percent environmentally friendly building materials, and 84 percent of construction waste was being recycled
- An Integrated Pest Management (IPM) plan incorporating non-toxic measures for animal and vegetative pest control
- A Green Cleaning Program, implemented as part of a comprehensive building-wide Indoor Air Quality Program
The project was completed by the Mack-Cali property management team, with Gerard Hazel of Sustainable Systems LLC providing consulting services.
Riverbend District Receives Smart Growth Award
Riverbend District—an 80-acre, transit-oriented development in Harrison, N.J.—has received a Smart Growth Silver Award from the Hudson County Planning Board, Advance Realty, a Northeast owner and developer of class-A office, mixed-use and multifamily properties, has announced.
Oneof the largest urban redevelopment projects underway in New Jersey, the Riverbend District is a mixed-use development that will feature retail, residential units, a hotel and office space. This summer, Panasonic Corporation of North America will move into its new technology center that Advance is developing at the site. This build-to-suit facility will house the company’s engineering offices, a lab and various testing facilities.
Bestowed during a ceremony on June 19, the Smart Growth award recognizes the Riverbend District for its role in the continued development of a mixed-use, compact, pedestrian-friendly transit village. Honorees were evaluated based on site selection, site design and proposed green infrastructure criteria from a number of sources, including the American Planning Association, The U.S. Green Building Council and NJ Future. Required elements included sites that preserved existing resources and repaired damaged systems, sites that included affordable housing and workforce housing and sites that were walkable and promoted public transportation.
Built on a long underused former manufacturing and industrial site, the Riverbend District will extend the Harrison street grid, creating eight new city blocks and providing the foundation for a new neighborhood. The development is part of the Harrison Waterfront Redevelopment Project, the town's revitalization plan that capitalizes on its transit-friendly PATH station and the long-neglected Passaic River waterfront. Located in the southern portion of town, Harrison’s redevelopment area encompasses 32 percent of the town’s 1.2 sq. miles.
The Riverbend District, which surrounds Red Bull Arena, puts users within close proximity to multiple modes of mass transit, including NJ Transit, Amtrak and a centrally located, onsite PATH station that will benefit from the Port Authority of NY and NJ’s plan to invest $256 million to completely redevelop and modernize the station.
ESCOT Sustainability Symposium Showcases Green Experts
Over 150 people attended the ESCOT (Enabled Sustainable Community of Tomorrow) Sustainability Symposium, presented by the New York Chapter of CoreNet Global, IFMA NYC, Urban Green Council and AGRION, on June 4. The event was held at Teknion, 631 Avenue of the Americas.
Attendees heard presentations on new green technologies and services and spent one-on-one time with sustainability experts in an exhibit hall setting. Experts discussed a wide range of topics, including intelligent job sites, tenant energy efficiencies, BIM for lifecycle building management, building management efficiency and HVAC improvements, renewable energy/co-generation, climate change and building design, innovations in solid waste management, the intersection of sustainability and technology, supply chain and product sourcing, LED retrofit funding, and the Living Building Challenge.
In addition, Robert Luckey, corporate senior vice president of pre-construction services at Skanska, and Elizabeth Heider, AIA, LEED AP, senior vice president of green markets, discussed the advantages of sustainable structures, such as operational benefits, cost containment, and health benefits for tenants, which in turn affect workplace productivity.
Noting that in the past, some owners have been reluctant to build green because of high costs, Luckey cited an overall trend toward reduced design and build costs as the market has matured. He added that the initial investment in sustainability can have a powerful impact on the future operating costs of a building. For example, the reduction of energy and water consumption can significantly lower long-term maintenance expenses.
Building on Luckey’s comments, Heider stated that the financial benefits of creating a sustainable structure can be realized in six to 11 years. She also reminded the audience that a flourishing economy requires a healthy environment, and emphasized that today’s developers, engineers, builders, planners and architects must take responsibility for the built environment.
Quoting an ancient proverb—“We do not inherit the Earth from our ancestors, we borrow it from our children”—Heider pointed out that sustainability is not simply a smart business initiative, it is the right course of action that will have far-reaching impact on society as a whole.
The Commons at Southfield Highlands Breaks Ground on New Eco-Living Multifamily in Weymouth, MA
John M. Corcoran and Co. will break ground on construction of an $18.2 million apartment building at the 1,400-acre SouthField development in Weymouth, Mass. Construction of 72 new apartment homes, which represents the second phase of The Commons at SouthField Highlands, is expected to be completed in the summer of 2014. Upon completion, Corcoran’s investment at SouthField is expected to be over $ 60 million.
The Commons at SouthField Highlands presently offers deluxe eco-living in 226 well-appointed apartment homes in Weymouth, MA at the vibrant 1,400-acre SouthField community. Located just 25 minutes south of Boston, residents enjoy convenient commutes just minutes from Route 3 and walking distance to the MBTA Commuter Rail while taking advantage of SouthField’s array of open green spaces.
“We are excited to begin the second phase of development at The Commons at SouthField Highlands,” Richard J. High, president of John M. Corcoran and Co., said in a statement. “This project represents the latest advancement of SouthField, which remains the region’s premier transit-oriented community, providing residents an ideal place to enjoy the benefits of South Shore living and a short train ride or drive to Boston.”
The new community will consist of 72 beautifully designedapartment homes that feature wood flooring, granite countertops, a roof deck, smoke-free living, eco-friendly green building design and a WiFi Café with outdoor patio. Residents will enjoy an array of additional on-site amenities, including a saltwater swimming pool, sundeck, poolside grill, fitness center, clubroom and game room.
501 Seventh Avenue Receives Energy Star Certification
Energy Star certification has been awarded to 501 Seventh Avenue, announced Anthony Malkin, president of Malkin Holdings, which supervises the W&H Properties portfolio property.
"With the award at 501 Seventh Avenue, a majority of the W&H Properties’ buildings have Energy Star certification," Malkin said in a statement. "Our intention is to attain this distinction for the remaining four buildings in the portfolio, in keeping with our goals of energy efficiency and sustainability, set first at the Empire State Building. We are investing to achieve these awards, not just qualifying without making any effort.
"Energy Star certification is a key indicator for us," he added. "We measure our success not only by the competitiveness of our buildings, but also by the competitiveness of our buildings’ performance."
New York City Climate Change Adaption Plan Revealed
New York City Mayor Michael Bloomberg has shared the city’s plan for adapting to climate change—a move the Union of Concerned Scientists called “the way of the future.” Without support from Congress, cities are forced to take steps on their own to protect themselves from the impacts of climate change.
“New York City is at the forefront of this work,” Rachel Cleetus, a climate economist at the Union of Concerned Scientists, said in a statement. “The city has a team of people working on this issue and has dedicated time and energy to determine what needs to be done to minimize risks. For example, they have carefully mapped the city’s flooding risk using the latest science on sea level rise projections and exposure to storm surge. Scores of smaller municipalities, especially those along coasts dealing with sea level rise and worsening storm surge, are still trying to assess their risks and are struggling to figure out what to do to adapt.”
In April, the Union of Concerned Scientists convened a roundtable in New York City of county and city officials from throughout the East Coast to share best practices for protecting their coastal communities. “New York City officials were clearly attuned to the problem,” Cleetus said. Protecting residents, their homes, and critical infrastructure, like energy, stormwater, and mass transit systems, requires good long-term planning, in addition to emergency preparedness.
Trifecta of Awards Recognize Vision/Rubenstein Campus, Bayer Health Care HQ
When the 200-acre former Alcatel-Lucent campus in Whippany, N.J. was purchased by Vision Equities LLC and Rubenstein Partners two years ago, the partnership recognized the property’s potential to serve as a benchmark infill revitalization for the State of New Jersey. This spring, the project—specifically the 2012 sale of 94 of those acres to Bayer Healthcare, and Vision/Rubenstein’s subsequent launch of the pharmaceutical giant’s new, build-to-suit 675,000-sq.-ft. East Coast headquarters on the site—has been recognized with three high-profile awards.
In May, NAIOP New Jersey honored the Bayer headquarters transaction with its Office/Mixed Use Deal of the Year award. “Our industry continues to demonstrate cutting-edge professionalism, and that hard work and creativity can bring success in any business cycle,” Michael McGuinness, CEO of NAIOP New Jersey, said in a statement. “We congratulate Vision Equities and Rubenstein Partners on an achievement that has changed New Jersey ’s economic landscape for the better.”
Also in May, the Bayer headquarters development received the 2013 United Way Impact Award, which recognizes a real estate project that showcases an outstanding commitment to the community.
“United Way applauds Bayer for making the long-term well being of our community a core vision of it headquarters project,” Theresa Leamy, senior vice president for United Way of Northern New Jersey, said in a statement. “Likewise, Vision Equities and Rubenstein Partners are to be commended for their role in developing a project that keeps in mind the health and wellness of both employees and the surrounding region.”
Earlier, the Morris County Economic Development Corp. recognized the project with its Real Estate Award – Office Category. Finally, the transaction provided a featured case project for the Villanova Real Estate Challenge, a national development case competition for students from top real estate programs across the country. Hosted by Villanova’s Daniel M. DiLella Center for Real Estate, the competition provides exposure for the next generation of real estate industry leaders to event sponsors and industry leaders, with 16 teams consisting of four students and an advisor judged by top real estate executives. For the Bayer transaction, the event provided students with insight on completing a case study with a mixed-use scenario that included sustainability and good planning in 21st-century commercial real estate.
“At its core, our Whippany project illustrates the best of public/private partnership—from local officials, to the governor’s office, to the brokers who are helping us move from vision to reality,” Vision Equities’ Sam Morreale, co-founder and managing partner, noted in a statement. “We really could not have asked for a better anchor for this campus. Bayer Healthcare deserves a great deal of credit for its dedication to creating a world-class East Coast Headquarters for 2,500 highly educated pharmaceutical employees. Bayer saw the opportunity to establish a state-of-the-art headquarters within the master-planned 200-acre mixed-use development, affording their employees a suburban work, live and play environment that is both pedestrian friendly and readily accessible in this key infill location at which the state, county and local municipality are executing the Smart Growth Plan to perfection. Quite simply, we were thrilled to offer an opportunity in Whippany for the company to do just that, and we are grateful for the recognition from these three prestigious organizations.”
The Bayer Healthcare transaction represented one of New Jersey ’s largest 2012 property sales and launched the largest development project in the Garden State last year. The original property included 15 vacant office, laboratory and support buildings totaling 1.4 million sq. ft. It ultimately will become a sustainable, mixed-use community—including class-A office, residential, hospitality, senior citizen and retail components—illustrating the potential to transform underutilized antiquated facilities into vibrant, modern environments.
Bayer Healthcare will begin moving employees to the property this summer, consolidating from four locations. The Whippany site includes specific emphasis on sustainability, and the entire project has been designed to LEED Gold standards. It incorporates two existing structures (totaling 450,000 sq. ft.) fully revitalized, reflecting a commitment to reuse. By example, more than 1 million sq. ft. of ceiling tiles were recycled and remanufactured by industry leader Armstrong, for use by other LEED-conscious corporations.
Adaptive Reuse Project Completed for Long Beach Press-Telegram Building
Construction is complete on the adaptive reuse project for the Long Beach Press-Telegram Building. The $12.5-million building renovation is the first project designed according to the new Long Beach Downtown Specific Plan Guidelines, which encourage pedestrian-friendly outdoor areas, visually appealing exteriors, sustainability and efforts to preserve Long Beach history. The project’s designer was Nadel Architects.
Located at the corner of Sixth Street and Pine Avenue in Long Beach, Calif., the 89,000-sq.-ft. Press-Telegram Building project includes the renovation of the exterior of the building, creation of a new plaza and landscaped pedestrian paseo, and tenant improvements on the interior. The building’s new tenant, Molina Healthcare, is tentatively set to move into the office space in June 2013.
The project also includes the 119,000-sq.-ft. renovation of the historic Meeker-Baker Building, located in the same block at Seventh Street and Pine Avenue, which is scheduled for completion in fall 2014.
Renovations and improvements for the Meeker-Baker Building will include new construction and restoration of the existing façade of the building, per historic landmark requirements. A creatively landscaped outdoor plaza and pedestrian space will connect the two buildings housed within the city block.
The adaptive reuse project gives new life to the high-quality, but long-vacant buildings, and supports the city’s long-term redevelopment goals by placing approximately 1,000 permanent employees in a dense, walkable urban environment that includes numerous neighborhood shops and restaurants. Further supporting the city plan and to strongly encourage the use of the Metro rail and bicycle commuting, a minimum amount of parking has been planned for the site. Two Metro Blue Line stops are within a few blocks and the site will also feature a bike-share program.
Rockefeller Plaza Tower to Be Redeveloped Into Green Trophy Building
RXR Realty plans to complete a major capital improvement and renovation program at the iconic 75 Rockefeller Plaza, located in Rockefeller Center in the heart of Midtown Manhattan.
The comprehensive program will feature a new, modernized lobby and elevator cabs, and state-of-the-art building systems, along with added amenities including outdoor areas and green space, designed by the award-winning architecture firm Kohn Pedersen Fox Associates. Construction is planned to commence in July 2014 and completed and ready for occupancy by fall 2015.
RXR Realty has appointed Cushman & Wakefield as exclusive leasing agent for building. The Cushman & Wakefield team will be led by Chairman of Global Brokerage Bruce Mosler, Executive Vice Chairman Tara Stacom, Senior Managing Director Mikael Nahmias, Director Ethan Silverstein and Senior Associate Peter Alden.
“We look forward to working closely with RXR Realty on bringing a newly renovated and rebranded, state-of-the-art, trophy building to Midtown Manhattan,” Mosler said in a statement. “We’re excited to be involved in this once-in-a-lifetime opportunity and delighted to work with RXR to reintroduce this iconic building to the market.”
“The concept to build a brand new building within an existing shell is unique in its approach as it allows 75 Rockefeller Plaza to be restored with all of the 21st-century office attributes while preserving its distinct characteristic as a Rockefeller Center landmark,” Stacom added in a statement.
When completed, the renovated building, with its classic limestone façade and a fully modernized interior, will feature over 620,000 sq. ft. of available office space and be tantamount to the first delivery of new construction in Rockefeller Center since 1947.
Originally named the Esso Building, the 33-story 75 Rockefeller Plaza was constructed in 1947 and stands at the north end of Rockefeller Plaza, bookending a classic corridor that includes 30 Rock, the International Building, the Shopping Concourse and the skating rink, which is home to the annual Christmas Tree lighting.
EPRI Study Shows Lifetime Cost of Ownership of Electric Vehicles Is Comparable with Conventional Vehicles
Consumers who purchase an electricvehicle will find that costs to own the vehicle are competitive with conventional and hybrid vehicles, according to an analysis conducted by the Electric Power Research Institute (EPRI). The study is based on pricing for the automotive products for the 2013 model year and compares the Chevrolet Volt and Nissan Leaf with gasoline-fueled cars that reflect average costs for different makes and models. Nissan lowered the price of the Leaf by about $6,000 in January. The study looks at several factors, including gasoline and power prices, incentives, financing, driving patterns and maintenance.
The cost advantage of plug-in electric vehicles (PEVs) increases as gasoline costs rise and decrease as they fall. PEVs can still be competitive with lower gasoline costs, but payback will take a longer period. If a buyer finances a vehicle purchase, total monthly expenditures for all options will be within 15 percent of the conventional vehicle purchase, so buyers can reasonably make a purchase decision based on their personal preferences.
According to the report, lifetime costs for the Nissan Leaf are lower than that of the comparison vehicles. However, the variation in costs is much higher for the Leaf than for the Volt—up to 30 percent of total costs. This variation means that while most drivers will benefit significantly from the Leaf potential buyers need to consider whether their driving needs are suited to the characteristics of a battery electric vehicle.
The study assesses both cash and financed purchases for electric, hybrid and conventional vehicles. The monthly outlay during the loan period is is a key indicator of affordability and may obscure the overall cost-competitiveness of vehicles for the life of the vehicle or the entire time of ownership.
The report also finds that lifetime costs for the Volt are close to the comparison conventional vehicle and comparison hybrid, indicating that increased upfront costs are offset by fuel savings. The variation in costs is relatively low between the best-matched and worst-matched, at about 5 percent. This makes the Volt a low-risk cost option for buyers interested in a PEV.
“Our analysis indicates that capital costs and operating costs are reasonably well balanced at the current time for most vehicle comparisons,” Mark Duvall, director of electric transportation research at EPRI, said in a statement. “Changes in the price of gasoline will affect this balance and will cause significant changes in payback time. Favorable state incentives or equivalent changes in capital costs for vehicles will have a larger impact than fuel prices, and will significantly improve payback time, total ownership cost, and monthly expenditure.”
The EPRI analysis focused on the Leaf and Volt because the two vehicles have been on the market the longest, have generated the greatest sales volume and provide data on real-world performance.