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.
by Jodi Summers
The Port of Long Beach is blue and green. The water is blue. The port is green, as they have implemented an exemplary green port policy to try and maintain the environment while they are shipping freight around the world.
The Green Port Policy is an aggressive, comprehensive and coordinated approach to reduce the negative impacts of Port operations. Founded in 1911, the 3,200-acre Port of Long Beach is a premier gateway for trade between the United States and Asia. More than $140 billion worth of cargo moves through the Port every year – everything from clothing and furniture to machinery and petroleum. They try to be green while going through this process.
- Protect the community from harmful environmental impacts of Port operations.
- Distinguish the Port as a leader in environmental stewardship and compliance.
- Promote sustainability.
- Employ best available technology to avoid or reduce environmental impacts.
- Engage and educate the community.
The Green Port Policy directs the Port to integrate sustainable plans practices into Port development and operations by actively promoting an organizational culture of environmental enhancement, fiscal responsibility, and community integrity. Current areas of focus are outlined below…
California passed landmark greenhouse gas legislation, The Global Warming Solutions Act (AB 32), in 2006. Although the state has yet to formalize greenhouse gas regulations for the port sector, the Port of Long Beach has already begun quantifying greenhouse gas emissions and formulating a plan for reductions. The Board of Harbor Engineers adopted a formal resolution establishing a framework for conducting business while reducing greenhouse gas emissions. They have assembled a multi-divisional Renewable Energy Working Group that is currently evaluating Port lands for solar- and wind-power opportunities.
The Clean Air Action Plan and Sustainability
The Clean Air Action Plan, adopted by the Long Beach and Los Angeles ports in 2006, is guided by the three components of sustainability:
1. Environmental Responsibility
· Air quality improvements
· Energy/fuel efficiency improvements
· Advances new technologies
· Creates model for regulators and politicians
· Ecological health side benefits
· Equitable distribution of financial burden
· Helps the Port maintain its “license to operate”
3. Social responsibility
· Human health risk reductions
· Includes stakeholders in decision making
· Creates jobs
· Process is transparent
· Protects integrity of workers
The Green Port Integrating Committee’s working group has the task of integrating the Green Port Policy, including sustainability, into all operations.
The Engineering Bureau is in its second year of implementing an American Association of Port Authorities-guided Environmental Management System (EMS), which establishes sustainable storm water practices during construction projects.
The waste paper and container recycling program is conducted in partnership with the Conservation Corps Long Beach, a non-profit organization that educates and trains at-risk youth.
The pilot solar car port has been up and running for almost a year. This is the first step in the process that will maximize renewable energy through the Harbor District.
Green Building principles are incorporated into new building design through the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification program.
Environmentally-preferable purchasing, for everything from pens to fleet vehicles, informs the way we buy. In the future, we’ll be paying even more attention to carbon footprints, especially with regard to building materials.
The Port of Long Beach is an incredible complex, moving around 115,000 TEUs – Twenty-foot equivalent unit) each month. It’s totally worth checking, if you get the chance.
To LEED or not to LEED, that is the question. The government wants your green opinion > through April 6th. The U.S. General Services Administration (GSA) is seeking public comments on a long-awaited recommendation regarding green building rating systems. Go to www.gsa.gov/gbcertificationreview and share your opinion.
In 2006, GSA first evaluated certification systems focusing on new construction and major renovation. Based on this 2006 review, GSA identified the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification system for use in the Federal sector.
Now the GSA is considering polytheistic practices encouraging each federal agency to make its own decisions about whether to use LEED, Green Globes, or the Living Building Challenge.
They are also looking for input into which optional credits or points must be achieved in a rating system, and whether one rating system should be used across their entire building portfolio, and should work with rating system developers to improve alignment between certifications and federal green building needs.
The comment period will be open through April 8, 2013. For more information, visit www.gsa.gov/gbcertificationreview.
by Jodi Summers
Fresh out of college and ready for adventure, Millennials have been flocking to the downtown Los Angeles urban core. They’re looking for a lifestyle adventure before the responsibilities of marriage and family lead them to settle in. Experts point to several building trends that are very sexy to this demographic:
- 1. Green by Desire
Jill Heron chose her loft lease by Pershing Square because it’s centrally located, with “access to just about everything. Lifestyle is important.”
Proximity to restaurants, entertainment and mass transit is important to this group that is now out on their own and spreading their wings for the first time.
2. Green by Mass Transit
Have you noticed the new transit villages that are being designed along the metro lines? They’re quite European style in that you can shop, get your dry cleaning and do everything you need in close proximity to your metro stop and your home.
3. The Green Home
We live in a green age. City codes, tenants, builders and developers are all moving toward green design. The benchmark is LEED (Leadership in Energy Efficiency and Design) an 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. And, individual cities – lead by the examples of West Hollywood and Santa Monica – have passed their own green building codes.
Less is more. There is a trend in small rental units, including micro-units and efficiency studios. These downsized units offer renters a more affordable, energy-saving housing alternative in dense neighborhoods, with shared multi-use spaces providing additional amenities.
Roof decks, atriums, the urban version of a vast front porch > common areas appeal to today’s renters. In dense neighborhoods, where living space is at a premium, renters revel in shared multi-use spaces which provide additional amenities.
“The rooms provide an efficient living space for tenants who are ‘on the go’ and don’t want the space (or expense) of a more traditional apartment,” observes Sarah Hatfield of architecture firm S + H Works.
5. Specialized Green Amenities.
Solar power, bike storage, garden space, pet areas, fitness rooms and even Zipcar parking are just a few examples of lifestyle design features that designers and developers are implementing to meet renter demands. Pet areas go a long way with renters, and will lead to a consistent stream of tenants and their pets.
We evolve and we learn. When it comes to building efficiency, we are advancing at warp speed. The Department of Energy has revealed that buildings meeting the new 2010 energy efficiency standard will conserve 18.5% more energy than structures using the previous 2007 DOE standard. It’s like making the jump to hyperspace.
The DOE did some pretty serious study to come up with the new codes. For its findings, DOE simulated 16 representative building types in 15 U.S. climate locations. In addition, they analyzed the energy codes published by the American National Standards Institute/American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the Illuminating Engineering Society of North America.
The evolved 2010 standard covers a wide spectrum of the energy-related components and systems in buildings ranging from simple storage units to complex energy usage locations like hospitals and laboratories. The size of the structures also ranged from under 1,000 square feet to the largest buildings in the world.
States are expected to review Standard 90.1, Energy Standard for Buildings and update their building code to meet or exceed the energy efficiency of the new standard within two years. Certification statements by the states are due October 18, 2013.
California requires our state-developed commercial code the 2008 Building Energy Efficiency Standards, comprising Title 24, Parts 1 and 6, of the California Code of Regulations.
The DOE boasts that the newer version of the standard contains 19 positive impacts on energy efficiency. Among the modifications are new requirements for daylighting controls under skylights; increased use of heat recovery; cool roofs in hot climates; skylights and daylighting in some building types; reduced ventilation energy; supply air temperature reset for non-peak conditions; efficiency requirements for data centers; control of exterior lighting; and occupancy sensors for many specific applications.
Over a 20-year span, green buildings can $53 to $71 per square foot back on investment. LEED and Energy Star certified buildings achieve significantly higher rents, sale prices and occupancy rates as well as lower capitalization rates potentially reflecting lower investment risk…and green buildings make the world a better place.
Kudos to the Port of Long Beach which is growing and greening in a big way. The Port has landed the largest deal of its kind for any U.S. seaport The Port of L.B. has inked a 40-year, $4.6-billion lease with Orient Overseas Container Line for the Middle Harbor property. Hooray for the SoCal economy > the Middle Harbor terminal is projected to generate more than 14,000 new, permanent jobs throughout Southern California by 2020.
And bravo to the Port of L.B. for investing $1.2-billion to develop the new 300-acre-plus Middle Harbor terminal. The lease would secure a tenant for the Middle Harbor Redevelopment Project, which combines Pier F and E into one state-of-the-art container terminal.
According to Long Beach Harbor Commission president Susan E. Anderson Wise, “This proposed agreement will enable the Port of Long Beach to maintain its competitive edge while bringing many benefits to the community.”
The Middle Harbor Redevelopment Project will combine two aging shipping terminals into one modern terminal which doubles the existing capacity. The project will utilize the most advanced cargo-handling technology in the world. The nine-year, $1.2 billion project will upgrade wharfs, water access and storage area; as well as add a greatly expanded on-dock rail yard.
“It will also be the greenest terminal in North America, cutting air pollution in half through the use of more on-dock rail, electrified cargo handling equipment and shore power, which allows vessels to draw electricity from a landside utility when docked rather than diesel-powered auxiliary engines,” affirms Anderson Wise.
And in signs of an economic comeback, long-term tenants, OOCL and LBCT will invest approximately $500 million in the latest cargo-handling equipment. FYI, LBCT ~ a.k.a. Long Beach Container Terminal Inc. ~ is a marine terminal full service container facility that has occupied Pier F since 1986.
OOCL is an ideal client. Their goal is, “To be the best and most innovative international container transport and logistics service provider; providing a Vital Link to world trade and creating value for our customers, employees, shareholders and partners.”
OOCL ships have a near 100% participation in the Port’s Green Flag Program, which provides rebates to vessel operators that slow down in and near the Port to cut down on air pollution.
The Port of L.B. Green Flag Program is a voluntary vessel speed reduction initiative that rewards vessel operators for slowing down to 12 knots or less within 40 nautical miles (nm) of Point Fermin (near the entrance to the Harbor).
Ships emit less when they travel more slowly > thus the program has been highly successful in reducing smog-forming emissions and diesel particulates from ships. In 2009, more than 90% of vessels participated in the program, slowing their ships in the 20 nautical mile zone. Even more impressive, more than 70% of incoming vessels to the POLB have decelerated within the 40 nm zone.
In return for their participation vessel operators can earn dockage rate reductions during most of the calendar year The Port will award about $2.5 million in dockage savings in 2010; and anticipates that 2011 awards will total in the $4 million range.
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