“From 2022 to 2023, we saw an 8.45% reduction in energy consumption in PENN 1,” Moss says. “And this [during a period of] increases in regular occupancy as employees returned to the office.” At PENN 1, energy efficiency upgrades include replacing all 8,500 windows with triple pane glass.
Shannon points out how energy efficiency was considered in the design strategy at PENN 2. “We installed the new glass curtain wall to fully maximize natural light into the tenant spaces, and then we used technology to help mitigate the energy use impacts of this design decision.” The renovations to both buildings resulted in a tighter envelope, including triple-glazed glass, which blocks heat and cold from seeping in through the windows, while maintaining the transparency of the glass and reducing noise.
Other sustainability measures at PENN 2 include electrifying part of the building and matching its grid electricity with 100% zero carbon renewable electricity certificates supplied by in-state renewable and hydroelectric sources. “At PENN 2, we installed a fan coil system that allows for zoning and maximum control for better energy efficiency,” Shannon says, “73,000 square feet of exterior roofing was newly installed with insulating layers and lots of greenery to mitigate heat sink.”
As part of the renovation, every restroom in PENN 2 was retrofitted with low flow fixtures and fittings contributing to Vornado’s target of a 10% reduction in water use by 2030. “We’re saving resources and money by reducing consumption,” Moss says. “We hold sustainability discussions with tenants to look at consumption costs and allow tenants to share their best practices.”
Sub-meters incentivize tenants to reduce their own energy consumption, further reducing their operating costs beyond the savings occurring in common area electric usage due to Vornado efforts to reduce overall energy use.
“The benefit of our sustainability commitment is three-pronged: we get bottom line savings, we achieve emission reductions, and we attract like-minded quality tenants,” Weiss says. “Similar to how decades ago asbestos removal became a must-do for every project, sustainability is a have-to and cannot be just a check the box item. We need to prove it out and deliver.”
Innovations Meet Green Goals
While Moss says one of the most unique parts of the PENN 1 project was replacing the windows with tenants in place, new technology is accelerating improved operations at both PENN 1 and PENN 2. Energy management software and smart building technology will use occupancy data to manage the building’s HVAC system and help us work with each tenant individually. The technology can help make operational adjustments to reduce consumption during peak demand periods.
Vornado recently received a $1 million grant from the New York State Energy Research and Development Authority (NYSERDA) Empire Building Challenge program to implement a waterside heat recovery system in PENN 1. The system will recapture heat from the building’s condenser water loop that would normally be ejected into the atmosphere and recycle it back into the building to reduce heating needs.
“We anticipate that after we implement this in PENN 1 and are able to measure our savings in 2025 and 2026, we can roll it out across other buildings in our portfolio,” Moss says.
Vornado is also offering composting programs throughout its portfolio. “We offer composting at no cost to our tenants, educate them about it, provide guidelines, and train the building maintenance staff to handle compostable materials,” Moss says.
Wellness for Tenants Starts Outside
Sustainability efforts include creating a better environment for tenants in Vornado buildings. PENN 1 has earned a two-star Fitwel certification, which focuses on the health and wellness experiences of tenants in buildings.
“In our discussions with tenants, health and wellness is a main focal point, even before energy savings, because everyone is trying to get employees back to the office,” Weiss says. “They are seeking the perfect workplace environment, which is why we’re seeing a flight to quality to these buildings.”
The new glass curtain wall in PENN 2 brings natural light into offices and common areas, while also providing views to the outside. Moss notes that the entry stairwell in PENN 1 is exposed to natural light to encourage people to use the stairs and both buildings have stairwells that can be utilized by tenants to move through the buildings.