How going green shaves operating costs and boosts branding for dealers

Auto dealers building new stores with environmentally friendly features are finding that going green shaves operating costs and also boosts branding. 

Garrett Scott, dealer principal of Scott Subaru in Red Deer, Alta., built a Passive House dealership two years ago and said the benefits go far beyond the projected heating costs of just $200 a year. 

“Quite frankly, that number is about bang-on. It is paying back a significant amount.” 

The total monthly energy bill for the 14,000-square-foot (1,300-square-metre) Subaru store is $2,000, while the bill for Scott’s GMC store, which is almost twice the size, is $10,000, he said. 

“The biggest chunk of [the Subaru dealership’s] bill is personal consumption — computers, lighting, doors opening and closing.” 

Passive House refers to a set of voluntary building standards aimed at providing the lowest possible environmental impact from a structure, whether it’s a house, an office or a dealership. 

Scott Subaru is listed as the world’s only Passive House dealership by the Passive House Database, which offers an overview of such projects around the world. 

EXTRA COST PAYS OFF 

The Passive House features added about 20 per cent to the cost of constructing the store, Scott said, but it was worth it. 

“I have to look at it as that 20 per cent was spent in three ways. One-third is the energy savings; one-third is the marketable advantage; and onethird you’re paying for the luxury, the livability.” 

Subaru’s branding as an environmentally aware automaker drives that marketable advantage, said Scott, whose website promotes his store as “the world’s most efficient dealership.” 

“We get interest [from potential customers] from Calgary and Edmonton and other cities,” he said. “People are impressed with what we’re doing.” Given Subaru’s market positioning as a greener carmaker catering to outdoor enthusiasts, “it was a brand I felt we could capitalize on that advantage, more than other brands.” 

The high level of insulation and walls that are nearly two feet (60 centimetres) thick also means the dealership is quiet. 

“It’s like living in a big cooler or Thermos. You close the door and close out distractions from outside the shop.” 

While Scott’s estimate of an extra 20 per cent in construction costs is accurate, the knowledge gained from his store means a similar one could now be built for only a 10 percent premium, said Andrew Peel, a Passive House expert based in Toronto. 

Peel, who consulted on Scott’s dealership, said Passive House construction is a growing trend for commercial buildings such as dealerships, with the number of projects in Canada “in the hundreds.” Peel has had requests for information from architects who specialize in designing dealerships, but he is unaware of any moving forward yet.

“Nothing concrete has materialized, but certainly [Scott Subaru] had generated some interest.” 

GREEN ROOF THE BEE’S KNEES 

Early adopters of green design are Richmond, B.C.-based Auto West BMW and Mini Richmond, which were named “The Most Sustainable BMW Dealership in the World” by the automaker in 2013.

Dealer principal Joachim Neumann said the award and the construction practices generated quite the buzz, not the least of which originates from the honeybee apiaries on the roof. 

The building uses geothermal heat — a well-based system Neumann said added $1 million in cost compared with a conventional heating system. The store has a green roof, a water reclamation system, solar panels and a vertical wind turbine. 

For a number of years, the dealership grew vegetables on the roof, which were donated to food banks. Today, the roof features sedum, a flowering plant known for its hardiness, as well as blueberries. 

Neumann said the building collects rainwater and grey water in an underground cistern, which then supplies water not only to the plants on the roof but also to the extensive greenery and plants required by the city of Richmond’s landscaping regulations. “People were amazed that we were  recycling water here in B.C., where it’s raining all the time,” Neumann said. “But there’s a fair amount of landscaping the city requires. It’s a fair amount of water.” 

Neumann said he has little basis to compare the costs of his current building with those of his old store. The dealership moved to its current location from a much smaller, landlocked location in an auto mall. He estimated the turbine and solar panels generate enough electricity to power all the store’s computers. 

As is the case with Scott, Neumann said the benefits go beyond costs. 

“If you don’t have AC and heating, you don’t have those chill zones. It’s a very comfortable environment.” 

He also thinks the sustainability of the dealership gives him an edge over his competitors. 

“It’s a hidden reason why people buy cars from us,” Neumann said. “We didn’t question if it was going to sell a car. We felt it was the right thing to do.” 

If he had it to do over, Scott said he would build his Subaru store the same way. 

“Yes, and we’re actively considering a new store right now and thinking we’ll do it to Passive House standards, too.”