In the world of commercial real estate development and construction, choices made during the planning phase can shape the success and sustainability of a project. As the world seeks more environmentally friendly solutions, the debate between traditional wood framing and innovative Insulated Concrete Forms (ICF) construction for multi-family housing and hotels is getting plenty of attention.
Economic Rewards From ICF
From an economic perspective, embracing ICF for multi-family home construction holds a wealth of advantages that ultimately boost a project's financial performance. While the initial investment might appear marginally higher than conventional wood framing, the long-term benefits of this approach outweigh the slight difference in upfront costs.
Energy Efficiency: Using ICF delivers impressive energy efficiency benefits, translating into substantial cost savings over time. Polycrete structures, characterized by their steel-reinforced EPS blocks and concrete core, provide exceptional thermal insulation. This robust insulation reduces the demand for heating and cooling, lowering energy expenses for residents and building operators.
For instance, a study by the Portland Cement Association revealed that ICF buildings can yield energy savings of up to 50% compared to conventionally built wood-framed structures. This level of energy efficiency exceeds the requirements for Energy Star and Net Zero Ready benchmarks, opening the door to significant Federal and State tax incentives such as §45L Tax Credits and §179D deductions.
Durability and Maintenance: The inherent durability of ICF structures results in reduced maintenance and repair expenses over the building's lifecycle. Concrete, long known for its resilience, combined with the steel substructure of commercial grade ICFs, contributes to a longer useful life and fewer required repairs. In context of multi-family properties, where swift turnover and reliable upkeep are critical, ICF's durability becomes a tangible financial advantage.
Speed of Construction: ICF construction accelerates project timelines through available factory pre-cutting and fabrication (offsite construction 
processes). The efficiency of installing pre-cut ICF wall kits provides the structural wall, insulation, air/vapor barriers, and furring system for attaching finishes all in one step with one subcontractor. This translates into quicker completion, reduced labor costs, eliminates jobsite waste, and expedites revenue generation. The accelerated timeline is pivotal for developers seeking efficient capital deployment and rapid returns on investment.
Environmental Stewardship via ICF
The environmental aspect of construction has attracted heightened attention as Americans recognize the interconnectedness between responsible building practices and the health of our planet. ICF construction aligns with sustainability objectives, offering environmentally conscious solutions that resonate with market demands and ethical imperatives.
Carbon Emission Reduction: While concrete production contributes to carbon emissions, careful material selection can mitigate its environmental impact. ICF construction can significantly reduce carbon emissions when employing supplementary cementitious materials like fly ash or ground glass pozzolans and environmentally friendly concrete mixes. With their energy efficiency, ICF structures' overall lifecycle tends to offset the initial emissions generated during concrete manufacturing.
Disaster Resilience: ICF structures exhibit exceptional resilience against natural disasters. The steel-reinforced concrete core inherent in ICF construction enhances a building's resistance to fires, earthquakes, and extreme weather events. The reduced need for reconstruction following disasters translates into decreased resource consumption and minimized environmental strain during recovery efforts. FEMA approves ICF in its Coastal Construction guidelines, and the Insurance Industry recognizes ICF in its Fortified Homes program.
Real-World Success Stories
The successful implementation of ICF construction in various multi-family housing projects underscores the value of this approach.
- 719 6th Avenue, Brooklyn, NY, stands as a testament to the benefits of ICF construction. The developer, recognizing the market demand for energy-efficient and sustainable housing, opted for Polycrete ICF structural walls. The condominium showcased reduced energy consumption and operational costs, increasing resident satisfaction and earning Passive House certification. This success was mirrored in improved property values and positive market differentiation, solidifying the financial gains associated with ICF construction.
- Rigby Best Western Hotel, Warner Robins, GA. This five-story, 85-room hotel exemplifies ICF's resilience against natural disasters. Situated in a tornado-prone region, the decision to use ICF is instrumental in safeguarding the property during extreme wind events. The structure's durability was proven when it withstood a tornado while still under construction. The owner’s second Polycrete hotel will begin construction in late 2023.
- Bedford Development, Milwaukee, Wisconsin, has built and operates several 40 to 150-unit multifamily developments constructed with ICF. President Ryan Bedford found that using ICF, they can build at a lower cost than stick framing, increasing their net operating income and, thus, the property value by reducing tenant turnover, maintenance reserves, HVAC expenses, and insurance costs.
The business case for building multi-family housing and hotels with Insulated Concrete Forms (ICF) over wood framing combines economic and environmental considerations. The economic advantages, including energy efficiency, durability, expedited construction timelines, reduced labor costs, and elimination of construction waste, generate substantial returns on investment and contribute to long-term financial viability.
On the environmental front, ICF's carbon emission reduction potential and disaster resilience align with sustainability goals, fostering responsible building practices. Real-world examples, such as 719 6th Avenue and Rigby Best Western Hotel, validate the effectiveness of ICF construction in bolstering economic returns, meeting market demands, and safeguarding the environment. As the construction industry evolves, embracing ICF technology is a strategic move toward a future of innovation, sustainability, and responsible growth.
