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Ted Mininni Ted Mininni   Bio
04.13.07

Green in Chicago

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A new idea has taken root in Chicago—bully for that city! According to Business Week, Chicago’s Green Exchange will be the first shopping center in the U.S. for environmentally responsible and socially conscious businesses." What a great idea!

Get this: not only will the first “green mall” in America be located in Chicago, grouping eco-friendly businesses for the first time, but the very building itself—all 250,000 square feet of it—will also be developed in accordance with LEED standards.

LEED (Leadership in Energy & Environmental Design) standards were developed by the U.S. Green Building Council. The LEED System “provides benchmarks for the design, construction and operation of green buildings. . . in five key areas”, states the article, “sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality”.

Apparently, a Chicago real estate developer, Baum Development, is capitalizing on refurbishing a historic building in a great location—350,000 cars pass by the site each day. Taking care to retain the building’s historic character, while retrofitting it with a "green" roof, energy efficient systems, clean air quality, a courtyard, meeting/event community space, on-site parking with priority parking given to hybrid vehicles, will make Chicago’s Green Exchange the first of its kind.

The article cites the growing market for green building materials in this country; one that is predicted to grow from $7.2 billion in 2005 to between an estimated $19 to $38 billion by 2010, according to the National Association of Home Builders and McGraw-Hill Construction. It is now possible for many owners to build or renovate their homes or businesses in an environmentally friendly way. As materials become more readily available, many consumers will no doubt, opt to do just that.

Just as importantly, “Chicago’s Green Exchange” will contain about 100 tenants; not all of them will be retail establishments, but environmentally and socially conscious businesses of every stripe. The developer is planning on a great mix: an organic restaurant and café, an environmentally-friendly building supply company, print shop, clothing retailer and furniture store. Architect and design studios whose principals focus on sustainability, as well as a car-sharing service and a bike shop are also planned tenants, so you get the picture.

What’s great about this model is that it provides a critical mass of businesses that are environmentally and socially conscious for a critical mass of consumers with the same philosophy and vision. If successful, the Chicago Green Exchange will offer a business model for other cities across the country.

With the number of consumers for eco-friendly products and services dramatically on the rise, and many new businesses taking root to supply them, this is a new concept with real possibilities.

• Are you interested in, or becoming more aware of green products and services?
• Do you support environmentally conscious businesses or consume organic foods?
• What do you think of this kind of business development plan?
• Would you shop in a “green mall”?



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Hi Ted, does a retail or other business interested in space at the mall have to adopt and follow LEED standards? What qualifies a business in the mall to be "eco-friendly"?

Posted by: Paul Barsch | 04.13.07

I happened across this blog post. If you work downtown, next Weds - 4/18 - there is a talk being put on by David Baum - founder of The Green Exchange. Its free. 12:15pm-1pm. 224 S Michigan Ave - its in a room off the lobby square.

I think the Green Exchange will be great. I hope they can get enough business in there to sustain the mall, let alone sustain the world.

Posted by: Jason C | 04.13.07

Hi Paul,

The developers and contractors follow LEED standards when constructing or renovating structures for commercial or residential use.

In order to be eco-friendly, the businesses contained in such a mall generally represent businesses that have implemented sustainable practices. For example, they recycle to cut down on waste, or use post-consumer recycled products in their packaging; sell organic products such as food, or clothing made from organic cotton or recycled fibers, furniture from renewable resources such as bamboo, the list goes on and on. Just a few examples of eco-friendly businesses.

Posted by: Ted Mininni | 04.13.07

FYI - here is more info on the lunchtime lecture series. Next week is Earth Week.

http://www.architecture.org/programs.html

Posted by: Jason C | 04.13.07

The momentum is growing for elevation of awareness of green homes for sale nationally and globally.

http://www.ListedGreen.com is continuing to grow with the demand for developers of green projects to "get the word out", about their energy efficient communities that are currently or soon to be announced.

Listed Green has also been asked to present itself at AltBuild 2007 Expo in Santa Monica on May 18th and 19th 2007.

Listed Green is excited to be part of this 4th annual event. Like-minded folks can now offer green homes for sale for only $20 per month and green home builders can do the same.

We look forward to getting the word out, as we're sure the green, sustainable housing marketplace is ready for us.

Posted by: David | 04.13.07

This Green Exchange concept has real merit and hopefully it will be successful so that other cities try to emulate it.

More and more start-ups are environmentally friendly in their practices now, so why not group them together so that consumers who support these initiatives have malls of their own to buy products and services in? Makes sense to me.

Posted by: Claire Ratushny | 04.13.07

The green movement is certainly one of the top trends in business. I don't think there are enough people that are willing to pay a price premium for environmentally friendly goods, as most people buy for self interest. Al Gore has done an incredible job of changing the world view of thousands, so I hope this mall is successful. I don't think that companies can be very successful at differentiating their product on "green" alone, because in a free market self interest prevails. In my opinion it will take government regulations to make a major difference.

Posted by: Charles | 04.13.07

Thanks Jason and David, for your input. This is great info and I'm sure Daily Fix readers will be interested in finding out more about green architecture.

By the way, architect William McDonough has been cited for his work in this area; he has also written extensively on the subject. Interested readers can go to his web site: http://www.mcdonough.com for more information about cradle to cradle systems.

Posted by: Ted Mininni | 04.13.07

I would shop in a green mall if the average prices seem reasonable compared to other retail establishments.

Posted by: Mario Vellandi | 04.13.07

Hi Charles,

It's always nice when companies choose to take certain initiatives because it's the right thing to do. There are many government regulations in place already, and they're not always followed.

Green products, whether sourced from sustainable sources, organic or recycled sometimes do carry a premium price tag. Yet, many consumers have shown a willingness to pay them. Witness the success of Whole Foods, for example.

Perhaps you're right; green alone might not be the only or most persuasive differentiator for businesses. But, when coupled with outstanding customer service and/or a giving back to the community or environmental causes, it can and is a potent force in the marketplace.

Posted by: Ted Mininni | 04.13.07

Green construction is a hot business, here and globally. My old college roommate is an expert in this area, so I'll get him to weigh in if we wants to.

As for the tenants, that's lovely as long as the definition of "green" means more than just being carbon neutral. Green better mean cash, too, or the owners will find "less green and more GREEN" tenants to help pay the bills. All things being equal, green (or RED, for that matter) will win -- but at a premium price or a lower performance, the consumer here or elsewhere will kick them to the curb pretty quickly.

Good luck to them!

Posted by: Stephen Denny | 04.13.07

Ted's post was an introction to LEED standards for me. Then I opened up an email from my town's mailing list earlier today to find that our mid-sized town of 30,000 is hosting a forum in early May called: “LEED”ing to a Greener Future: A Forum on Greener Buildings and Homes.

So Stephen, David and all -- I guess you are right. Clearly this is an initiative that is gaining momentum.

Posted by: Ann Handley | 04.13.07

Ted, I wrote an article on green building for The Business Journal back in February. That was my introduction to LEED and the entire concept of "green" building. Industry experts I interviewed claimed that the difference in doing things "green" didn't cost that much more, and often came out the same.

http://phoenix.bizjournals.com/phoenix/stories/2007/02/26/focus1.html

I think the idea is great and long overdue. But, like everything else, society needed a tipping point, and I believe that came with Al Gore's film and the Academy Award for it. Now, it's a subject being covered more frequently. Hurray!

Posted by: Elaine Fogel | 04.14.07

This is great. I'm surprised this concept didn't spring up in California yet.

Do you know if there are any similar projects under consideration or in development?

Posted by: Brion | 04.15.07

Thanks for posting your comments and adding to the conversation, Stephen, Ann, Elaine and Brion. Yes, this movement is gaining momentum. Organizations are being formed around the country to push more environmentally friendly building practices. This will be more than a fad if we reorient our thinking and push our efforts in the direction of using renewable resources in construction and adding more energy efficient, less wasteful features to our buildings.

Great article, Elaine. It brings community awareness to a new level. Brion: you might want to contact your municipal and state representatives to find out what is being done in your city and state. Ann: with towns like yours holding forums on this issue, and participation from local homeowners, business owners and contractors, everyone can find out the steps they can take to do their share toward sustainability.

These grassroots efforts really count. Thanks, all.

Posted by: Ted Mininni | 04.16.07

Having spent years in the natural products industry, environmental issues and sustainability are of great interest to me. To show you how the Green Movement in building has gained momentum, This Old House is currently airing a project where a Texas homeowner has renovated an older craftsman style home with new green products while substantially lowering energy use and costs associated with air conditioning for most of the year.

What's exciting here is that older homes and commercial buildings can be restored with sustainable building materials and many more energy efficient features. Retrofitting is as important as new construction in my view. When consumers become informed, and do just a few things to help the environment, the overall impact is a large and positive one.

Posted by: Claire Ratushny | 04.16.07

I am excited with this post and the conversation. Ted's posts are always ones to watchout for!

Internet can help establish eco business models. Traditional and rural India uses environmentally friendly products. For eg. in Dharmasthala and other parts of South Kanara dist.,and Udupi districts of Karnataka 'veeryo' and 'donne' are native plates and small cups. Such items can be developed further, its aesthetic qualities improved and mass produced through a cottage industry for consumption on a large scale. There is a business scope for this. Tapping in to production of established eco friendly products and strengthening of the eco movement will help our society and Mother Earth.

Posted by: Sunil S Chiplunkar | 04.17.07

Sunil,

Many thanks for the kind words. I appreciate your enthusiasm. Your comments prove that people can implement ideas on a large scale through establishing regional and national associations as well as small, local grassroots efforts. What is going on in your country and ours, as well as across the rest of the world is encouraging.

If we all do our part, bit by bit, we can launch whole new industries to employ people (to your point), and manufacture, sell and generate revenues from socially responsible products that help us all out. That's a win-win proposition, isn't it?

Posted by: Ted Mininni | 04.17.07

I am really impressed my the site Marketing Prof. I am doig my Ph.D in understanding he customer awareness and their willing ness to pay a premium on the green products in India . The study is in reference to the Automoble Market which has a lot of impact on the mother earth.
I would request you to ad my name in your mailing list if att al there is a possibility.
I look forward for a cleaner world than today for our future generation

Posted by: Nitin Joshi | 10.06.07

I think this is a GREAT idea, we're an eco-friendly clothing company and would definitely consider opening shop at a "Green" mall!!

Great idea!

Posted by: Steven Weez | 10.13.07

Outstanding. I would absolutely shop there and a yes to all of the questions you asked at the end of your post.

Thanks for bringing this project to our attention and let us hope there will be many more like it.

I think this idea is similar to the sort of new urbanism style communities we have seen develop in recent years. Here is a sort of definition from Wikipedia:
http://en.wikipedia.org/wiki/New_urbanism

It is based on sound human wants and needs so I think it will succeed. I think people want a walkable community, green space, beauty, not to mention places to eat and shop without having to drive to 5 different places to do errands.

They want (no, need) safe open spaces for their children to play with.

This all sounds very liberal and idealistic and that is how I probably sound a lot but really, when you think about it, these ideas are conservative.

When I think of the perfect community, I think of the corner store where you know the proprietor. I think of walkable, safe communities where children can play. I think of people walking to the store, stopping on the way to chat with a friend. I think of the way things were, I think, though I think we *can* do it better now. We should first acknowledge we lost it. We sort of blew it as a society and and a culture.

No, I never want to go back to the era of the "Feminine Mystique" of the trapped housewife with no options. I never want to go back to era when companies could dump into the air and water with abandon. But I do think that this society threw out the baby with the bath water.

Posted by: Neil Anuskiewicz | 10.14.07

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