May Hsu of GreenandGorgeous.

There’s been a lot of talk about what the future holds for the green movement in light of the current economic crisis.  We will be exploring this issue in the coming weeks with various posts looking at different industry trends, perspectives and insights. We thought, what better way to kick-off this exploration than looking at the star of the current crisis, the housing market. Over the past couple of years, residential green building has taken off. Not only do consumers see the economic benefits of low impact building and furnishing materials, but these products have become the pinnacle of modern design. We spoke with GreenandGorgeous’ May Hsu, Certified Green Building Professional and Ecobroker (and more, check out the end of the post for all of May’s accomplishments!) to get a glimpse into how the green housing market is fairing through her personal experiences with her clients.

1)    What are the biggest trends in “green” real estate?

Some of the cities in Southern California are going through a trend of urbanization to accommodate growth which has to consider environmental stewardship, population and job growth, public transit, and adoption of green building principles.  For example in my area of expertise, City of Pasadena consists of mix-use developments near the metro stations, condominiums are designed to have garden courtyards and commercial districts are designed and developed for pedestrians and social gatherings.  When I show a home or sell a home, I explain the benefits living in Pasadena neighborhoods where you can walk and bike to get almost anywhere, the beauty of its historic architectures, the LEED certified City Hall of Pasadena, so that they’re buying the location.  As for commercial real estate, adoptions of LEED standards have been mandated in municipal buildings and there’s increase awareness and incentives for greening commercial buildings.  Green residential real estate is still more in the luxury sector for single family homes above 2 million and town homes/condos priced from $800,000- $1,500,000.    Green certifications in the Los Angeles area are LEED (Leadership of Energy and Environmental Design), Green Pointed Rated, and ENERGY STAR.  Because 60%-75% new construction has ceased due to the economy, more “green” type of real estate would fall into retrofitting, remodeling, infill developments and apartments in the coming years. 

2)    If you could dispel one common myth consumers have about owning a green home, what would it be?

That green is more expensive.  To some extent initially it is in the residential sector.  My green team member Katrina Rosa LEED AP, says commercial green buildings will cost 0-2% more if it is implements before a pencil is drawn for a project.  Most projects are expensive because developers and architects realize that they have to make adjustments along the way.  Green doesn’t have to be expensive if implemented in the beginning.  It’s like cooking… I’m not great at cooking or following instructions, but let’s say I follow the instructions wrong (which I do often) and I have to add other ingredients to compensate taste or I just dump the whole thing and start over.  I buy more ingredients than I need, and dump the rest that I don’t use.  I had to spend more money on the ingredients, more time in preparation, and at the end I probably can’t sell it and I’ll eat it myself.  Most people don’t plan ahead of time in regards to design, construction, operations, maintenance, and marketing for a green home until problem comes up, then you’re just doing patch up work… can’t put lipstick on a pig. 

 3)    We know the housing market has been hit hard by the current economic crisis. How have your clients responded? 

There are definitely fear and uncertainty about the current market and clients have fear and uncertainty of buying a home or an investment.  Most buyers’ priority is whether if they afford their current mortgage, put food on the table, and pump gas in their cars.  I respond to what my clients needs are, if their main focus is affordability, I will find them a house that they can afford, then after close of escrow, suggest some cost saving ideas they can do like change faucets and light bulbs, insulate the home, buy energy star appliances, etc.  As a real estate professional I believe in the current market my job is to protect my client’s best interest, whether to green or not to green, solving their problems, and close deals.  People need to solve their problems in the present because they’re uncertain about their future.

4) Are they still willing to pay a premium on a greener home in order to reap future cost-savings?

Personally I don’t believe a greener home should be more expensive than an average home, affordability is part of sustainability.  In my take, I believe the market is as it is because it is “unsustainable”, people have mortgages they can’t afford, lives in homes that makes them sick, commutes longer than they need to, and work longer than they have to.  However the clients I have are more financially stable that don’t have these issues, are very interested in installing solar panels in their homes and/or retrofitting by using greener features. 

5)    Would you classify most of your clients as “greenies” -consumers that consider social and environmental issues in the majority of the purchasing decisions?

I have a variety of clients, from renters that wants to purchase a home, investors looking for apartments and shopping centers, to farmers looking for organic farms.  70% of my business is commercial however because of my spheres of influence which mostly are in some scale of being “greenies”, they mainly want a real estate that’s suitable for their home and/or business.  Majority of the time their decisions are based on the neighborhood, cap rate, return on investments, and future potential.  For example a current client of mine is looking for retail spaces to open a store for organic produce in Pasadena and surrounding areas.  They’re also looking for organic farms in the Inland Empire and a home nearby.  My team and I help with all aspect of real estate, the store, the farm, and the home.  And then suggest things to green those properties that are suitable for their business and their home, it’s really the whole home and business approach to green real estate.  Another client of mine wants to look for the ugliest house in my area, tear it down, and built a green home.  He actually has a bio-diesel dispenser in his garage and an organic garden, retrofitted his home very “green”, and so I think environmental issues is very important to him and his family.  

………

May Hsu’s mission is the help people fulfill their dream of sustainable home ownership and investments. Licensed in California, May joined Treeline Realty & Investments® and has successfully sold from condominiums to luxurious estates in the San Gabriel Valley. She is also a new homes consultant for developers for new home constructions which focus on market strategy, market analysis, contract negotiation, and meeting aggressive sales target.  

You can follow May on her site, GorgeousandGreen.net. Make sure to check out her regular series of vblogs on green homes and living, they’re informational and entertaining!

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5 Questions with…

Erin Barajas, Manufacturing Editor at California Apparel News

There has been a lot of discussion surrounding this month’s announcement that eco-friendly retailer Nau would be closing its doors. This got us thinking here at Vert, where the sustainable, green trend we have been seeing lately in the apparel industry is heading. If a team of all-star executives with a much buzzed-about innovative, eco-friendly concept was unsuccessful, what does this say about the future of eco-fashion? Companies seem to want to be part of the Green Rush, but it is still unclear how they will balance profit and sustainability. If you build it, will the consumers come? What does it mean to be green in the apparel industry and how do existing green lines hold up to these standards?

For our first installment of our 5 questions series, we spoke with Erin Barajas, Manufacturing Editor at California Apparel News, to gain some background info on “green” in fashion and see where the trend might be headed.

1) What does it mean to be ‘green’ in the apparel industry today?

In fashion “green” can mean just about anything. There is no official standard by which being “green” is judged. So, it can mean a T-shirt was made using organic cotton, but then later washed in a harsh chemical to make it super soft. Sometimes manufacturers tag garments as “green” if they used a low-energy or eco-conscious process to wash or produce them. “Green” is sometimes also used to describe garments that benefit the environment through their sale – if a certain portion of their proceeds are donated to environmental charities, for example. “Green” can also mean a garment is made from sustainable materials. It’s a very broad term and there is a movement in the apparel industry to clearly define what qualifies as green.

2) Are you seeing an increasing trend in “green” or “sustainable” clothing lines?

There is definitely a move to incorporate “green” and “sustainable” components among apparel brands across the board – from kids apparel to designer goods. Similarly, there seems to be more and more emerging brands that label themselves as “green” and strive to produce clothes with as little environmental impact. These brands tend to be more niche and contemporary – meaning they target a pretty specific demographic, sell at more exclusive retailers and come with a pretty hefty price tag. It’s these newer, smaller, up-and-coming brands that are agile enough to push the envelope and dedicate themselves to the eco cause.

3) How hard is it for an apparel company to be “green”?

It is a really complicated issue. Making apparel isn’t the most eco-friendly thing, but there are many opportunities in the production process to reduce our impact on the environment. These aren’t always easy, but they can make a difference. Sourcing fabric is the first step to being eco-friendly. There are organic fabric options – but they aren’t always the type designers want to use- so that means brands with eco-friendly aspirations have to find other “green” routes. Sometimes that can lead to the creation of new fabrics, which benefit the entire industry. There are also new washing and dyeing techniques that reduce the amount of chemicals and water used in those processes. Other brands are opting to produce locally in order to reduce their shipping needs. Some are going so far as to build vertically-integrated facilities that use solar power to run their machinery. Any little bit helps, but it can be challenging for brands to navigate their way around the “green” issue.

4) Who are some green pioneers?

One designer that stands out is Linda Loudermilk – a Los Angeles-based designer who not only uses eco-friendly fabrics but helps develop new high-end “green” fabrics. On the mass market level, Target and Rogan, a high-end eco-conscious brand, have collaborated on an environmentally-friendly collection that is getting much attention – not just for the fashion-forward nature of the designs but because of its decidedly “green” focus. Mass market retailers aren’t really known for their dedication to the environment, so this collaboration feels like a real first.

Linda Loudermilk Designs hit the runway- photo from lasplash.com

5) Where do you see this trend going? Is there a future for green and sustainability in fashion?

I do see the “green” trend growing in the fashion industry, but I think we’ve reached a point where as an industry we have to define the term much more clearly. Consumers are much more savvy and the “green” term can’t just be a marketing tool. Brands are going to have to back their “green” labels with evidence or more clearly describe their eco efforts.

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