NEW INDUSTRIAL DEVELOPMENT WILL GO GREEN FIRST

January 10, 2013 on 12:41 am | In Green, New Developments, Uncategorized | 2 Comments

by Jodi Summers

Research and statistics show that Energy Star and LEED-certified buildings can attract higher rents and generate increased demand from tenants < and that a green property can garner a better lease rates and higher sales price. But the bottom line has been so shaky lately, that green hasn’t really gotten very far in industrial real estate.

Going forward we will see change. New projects follow CalGreen codes, but spec development is basically being built to an absolute minimum and then individual owners grow it from there.

Prologis is leading one of the more proactive environmentally friendly construction campaigns. The logistics company has embraced LEED—not just building to the standard, but having LEED-certified construction managers who know how to work the paperwork a little more efficiently.

“Calgreen holds you to that standard anyway, “so a few extra bucks thrown at it will get you the certification,” shares a Prologis southwest region president.

With the older, Class-B buildings, it’s tough to go LEED without the tenants’ cooperation because tenant improvement are put toward more specific needs. LEED cert is near the bottom of the hierarchy of true needs but definitely on the radar screens, but most tenants are not willing to pay more to get it @ this point in time.

LEED (Leadership in Energy Efficiency and Design) is the benchmark international certification system which offers bronze, silver, gold, and platinum certification levels. Statewide we have the CalGreen Code, which is more like everytown’s way of going green.

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http://www.youtube.com/watch?v=ijXiVFXB_pk

http://www.socalgreenrealestateblog.com/?p=2202

http://biz570.com/polopoly_fs/1.475935!/image/3492014920.jpg_gen/derivatives/landscape_490/3492014920.jpg

http://www.socalindustrialrealestateblog.com/?p=1578

http://assets.inhabitat.com/wp-content/blogs.dir/1/files/2012/03/Nuclear-powerplant-transformed-wunderland.jpg

http://cdn.brownstoner.com/brownstoner/archives/Green-Building.jpg

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  1. industrial tenants have extracted every bit of savings out of their supply chains and are more efficient that ever. That’s good news for landlords: there’s pent-up demand, since tenants still need more space or need to consolidate. Stan’s only concern for 2013 is potential spec overbuilding.

    Comment by Real Estate Bisnow (NY) — January 10, 2013 #

  2. Good news for the economy and Industrial Real Estate. Cargo volumes at the Port of Long Beach climbed last month thanks to the busiest-ever December for containerized imports, which rose 18.9 percent over the same period a year ago.
    Port terminals handled a total of 560,120 twenty-foot equivalent container units (TEUs) overall, an increase of 9.8 percent from December 2011.
    The rise in container traffic came as more ocean carriers added services to Long Beach in recent months, including CMA CGM and Mediterranean Shipping Co., two of the world’s largest container shipping companies.
    “Business at the Port of Long Beach is clearly on the upswing as the economy strengthens and international trade continues to support hundreds of thousands of jobs in Southern California alone,” said J. Christopher Lytle, Executive Director of the Port of Long Beach.

    Comment by Port of Long Beach — January 16, 2013 #

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