Green days

Certificates, energy audits, national and European directives, pressure from environmentalists – they all go towards making warehouses greener

Mladen Petrov

Which sector deserves to be called the biggest environmental polluter? The energy sector, the automotive sector, or could it even be... the real estate sector? Buildings consume 40 pct of the world’s electrical energy, and they can account for up to 70 pct of carbon dioxide emissions. Quite a lot, don’t you think? But luckily this is not lost on the construction sector. Green is in, and it is more and more in vogue in residential buildings, office premises, and now, increasingly, also in the design of warehouses.

BREEAM is coming

How a ‘green’ building is defined depends on the country. In Germany the term applies only to energy-saving buildings, whereas in Anglo-Saxon countries the term is understood more broadly, reaching outside the framework of strictly technological specifications and emphasizing issues related to town planning and society. There are nearly 15 building certification systems whose objective is to unify different existing norms, and some of the most popular of them are: the American ‘LEED’ (Leadership in Energy and Environmental Design), the British ‘BREEAM’ (Building Research Establishment Environmental Assessment Method) and ‘CASBEE’ (Comprehensive Assessment System for Building Environmental Efficiency). These systems are focused on such issues as energy saving, materials used, the quality of air in the building, water usage, the planning and construction of the building, etc. The BREEAM certification is not yet widely known in this region, even to the managers of large companies, but there has been some progress.

At the tail end?

In August, the Central and Eastern Europe Sustainability Forum took place in Warsaw. Some of the participants were top-league players on the real estate market, such as ING Real Estate, Orco, ProLogis and AIG/Lincoln. The absence of local developers is by no means incidental. At the moment it is the multinational corporations that apply for certificates and boost standards. “I think in the near future it is unlikely that a small local developer, who owns just one warehouse, will be in any hurry to obtain the certificates, especially if they are not compulsory,” feels Marzena Pobojewska, director of the warehouse department of the Polish branch of King Sturge.

BRE Global, the institution that grants such certificates, presented a certification system during the forum that is also applicable for developers of logistics centres. ProLogis is currently attempting to obtain certificates for five properties in its portfolio, for a start. However, in Central and Eastern Europe it is not alone. Warehouses being developed in the region by Segro are also being prepared for BREEAM. The company hopes that the system will be successfully introduced in Poland next year. The list of companies who are interested also includes some developers from Hungary and Romania.

So, how does the region compare to Western countries, which started paying attention to environmental issues in warehouse construction 5-10 years ago? Graham Reece, director of project management for CEE at ProLogis, has been working in the Warsaw office of the global developer since January. One of his duties is the implementation of BREEAM Europe certificates for the company’s warehouses. “Contrary to all appearances, the region is not as far behind as it might seem. We need to remember that most of the developers in Western Europe deliver designs that meet local requirements, but they do not decide to take it one step further, to propose something more. Only a few of the buildings rise above the standards established by law,” he says.

Change of colour

Although developers have different opinions on the issue of warehouse architecture, when it comes to environmental solutions only a few doubt that their importance will increase quickly. And the most important item of news? It does not cost a fortune. Basic features, such as good heat insulation and the implementation of systems for optimal water usage do not generate additional expenses. The largest investments in alternative sources of energy should pay off within up to seven years. So the decision is up to the developer. In Western Europe, the barrier of environmental requirements that developers have to meet is being gradually being strengthened. The process is influenced by ever more stringent national laws, as well as by the interest of warehouse tenants, which goes hand in hand with their social responsibility policy.

An ecological building is certainly one that does not emit carbon dioxide, for example ProLogis Park Pineham in the UK, leased by supermarket chain Sainsbury’s, which, according to the estimates of the developer, saves 75 pct more energy than a standard warehouse. Another good example is given by warehouses where alternative energy sources can be found. This is a more advanced option. There are some more aspects that the developer can take into consideration when beginning the work on a design. These include, among others, improved thermal performance of the building envelope, reduced air-leakage, more efficient lighting and heating systems and the use of recycling.

The label ‘environmentally friendly warehouse’ does not have to imply greater costs. It is estimated that the implementation of basic eco-friendly solutions leads to an increase in construction costs of 1-2 pct. The costs of building a role model warehouse will be 10-12 pct higher. The main cost is the purchase of wind turbines, heat pumps and roofs with solar panels. Despite the relatively low costs, one can still have the impression that, up to now, the developers in the region would rather not undertake such large scale investments. What are the benefits, apart from the obvious good PR? First of all, lower usage costs. The choice of environmentally-friendly solutions, even the less advanced ones, can lead to a reduction of expenses on energy by as much as 50 pct.

Ranking of the green

In the opinion of experts, the Czech Republic and Slovakia are leaders in the adoption of environmentally friendly solutions. “One reason for this is the large number of car producers, especially in Slovakia. As the whole world is pointing accusing fingers at the motor industry as the no.1 polluter, car producers are particularly focused on the issue of environmental protection, which also influences the choice of warehouses,” adds Graham Reece. Environmental standards are also changing in Hungary, where higher thermal efficiency standards for buildings have existed for some time. Poland is a little behind the rest of Central Europe, due to the fact that Polish law is slightly more lax than in when it comes to environmental protection. Another issue is the lower level of interest in these matters, also on the part of the tenants.

In Bulgaria, the logistics market is still in its infancy. Does this mean it is too early for the designs to get ‘greener’? Sofia Airport Center, for which Tishman International is an investor, is a business park in the suburbs of Sofia near the airport. It will also contain 22,000 sqm of warehouse space. The buildings will only apply for the energy efficiency certificate, but more advanced environmental solutions are envisaged for the office part of the complex, which will have an area of 100,000 sqm.

Environmentally unfriendly tenants

So far, it is mostly foreign companies which have been the driving force behind the demand for environmentally friendly warehouses. For example Nokia, immediately after having moved part of its operational activities to Romania, will move into a warehouse of a very high environmental standard. However, it is impossible to avoid asking about the feelings of consumers. “For tenants the most important thing is how they will benefit from the fact that the warehouse space they rent is certified. If savings can be demonstrated, then having the certificate is an advantage. However, if it is all about marketing then I do not think that the certificates can encourage anybody. At the moment our clients do not ask about certification – the basic standard is enough for them,” claims Marzena Pobojewska of King Sturge. However, in reality the certificates are rather a benefit for the developers, as they guarantee a clear conscience. There is also some good news: developers insist that tenants will not pay for it all through higher rents.

Short-lived fashion trend or the shape of things to come? It seems green is here to stay. Much of this is due to new EU guidelines, such as that in 2009 the act on renewable energy sources comes into force, and will be gradually tightened until 2012 by means of the introduction of new rules for the construction of buildings, forcing developers to save more energy. And this is just the start of the EU’s plans for energy savings and limiting the environmental damage for which buildings are responsible. Developers already have to follow stricter legal regulations, but they will have to go much further than this – sooner rather than later. ν