Bringing Next-Generation Design to a Next-Generation Market

Mark Goodman & Associates (MGA) made local and national headlines recently with the developer’s announcement that its forthcoming 310 N. Sangamon will be the largest office project in the U.S. to achieve Passive House certification. Located around the corner from Google’s new headquarters in Chicago’s Fulton Market District, the 12-story building will offer 268,000 square feet of office space and 7,800 square feet of ground-floor retail. Connect Media caught up with MGA president Mark Goodman on what drew him to the project, and why more American developers haven’t embraced the Passive House concept.

Q: What were some of the main selling points that “sold” you on doing a Passive House project?

A: It was easy to sell me on the Passive House concept because I believe environmental issues will be at the heart of the next generation of office buildings and other major real estate projects. As of now, this building will be the largest office building in the U.S. to be Passive House certified, which is one of the most stringent sustainability standards in the U.S. and Europe.

Its design utilizes continuous exterior insulation with no thermal bridging, an extremely air-tight exterior envelope, high-performance triple-paned glazing, low-energy mechanical systems and photovoltaic panels as the renewable energy source that will reduce the energy demand to 25% of a code-compliant office building. Passive House buildings provide continuous mechanical ventilation, with superb indoor air quality for a healthier environment and are more resilient to climate change and loss of power.

Q: Why is the Fulton Market District an especially apt neighborhood for such a project, which in the U.S. hasn’t been done on this scale before?

A: The Fulton Market District in Chicago’s West Loop is all about the “next” generation, and in my mind, that demographic is more attuned to an eco-friendly work environment than we’ve been in the past. Today’s workforce wants to live downtown, and integrate a 24/7 lifestyle of work and play instead of the more traditional 9-to-5 day.

Fulton Market offers an abundance of choices in restaurants and entertainment, and corporations are realizing they need to be where they can attract the best and brightest employees. As members of this generation become the decision-makers, their enlightenment about working and living in energy-efficient buildings will become more relevant and have greater impact in both commercial and residential construction.

Q: What has held back other developers from embracing Passive House, and what are some of the counter-arguments you would make?

A: Developers like proven things that have worked in the past. The golden rule of development is to not spend money on a property design that doesn’t have a direct payback. They expect a Passive House building will cost more to build and command rents that, while higher, won’t yield a return on their investment. But the utilities will be extremely low, and we believe these savings – coupled with the benefits of greater employee productivity, health and comfort – justify the investment.

We were willing to risk that rule based on the belief that there are corporations that place a high value on their employees, and are willing to pay a premium to make them happy and keep them healthy. Most importantly, this is the right thing to do for future generations and we embrace that opportunity.

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