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Warehouse design under pressure
The notion of sustainable building design often conjures up images of glass boxes with grass covered roofs. In truth, sustainability is a complex issue with many variations on a common theme, which can be described as the balance between economic and social considerations and how these reduce our impact on the environment and promote the well being of our local, regional and national communities with the ultimate goal of protecting our resources for future generations.
Modern warehousing design has embraced as necessity, for the most part, all things green, in order to meet the growing demand by occupiers for sustainable buildings to help meet their Corporate Social Responsibility (CSR) policies.
Occupiers leading the way
Lambert Smith Hampton’s (LSH), recent Corporate Real Estate Matters research revealed that commercial occupiers are increasingly looking towards the properties they inhabit, to help drive their CSR agenda. The research reveals:
• Occupiers of commercial buildings recognise that sustainable buildings boost productivity and they will pay up to a 15% premium for that benefit.
• 35% would pay up to 5% more in rent in order to occupy a sustainable building, while a further 35% would pay up to 15% more.
Confirming this, large retailers such as Wal-Mart aspire to become the greenest, as well as the biggest, global retailer. Retail giants Tesco, Sainsburys and M&S have also set out their own green agenda for occupying sustainable buildings, which will ultimately drive future development in the warehousing market.
A green makeover
It is crucial that the property industry does not miss the opportunity to take a similar green approach to its existing stock. The UK has an abundance of existing warehouse stock which is not yet past its use by date, with many users locked in to long terms leases.
Recycling buildings is not a new concept, but in today’s challenging market there is an opportunity to consider the green credentials of current vacant space which is currently in use but, which will fall behind the pack in years to come if it cannot demonstrate its green credentials to future occupiers.
Some examples, which are not exhaustive but well established, of principles that promote sustainable design ordinarily applied to new build but which can also be incorporated into existing stock include:
• Use of low water volume appliances
• Rainwater harvesting for use in office and welfare facilities and grounds maintenance
• Increase use of natural lighting and ventilation
• Roof mounted solar panels to provide hot water to staff areas
• Use of passive solar control such as brise soleil and glazing with a thermal / glare control treatment
• Infra-red PIR lighting controls and zoning to office and warehouse areas
• Increase use of roof lights in warehousing areas to reduce need for artificial lighting
• Use of energy efficient condensing boilers
• Consideration to install a Combined Heat and Power (CHP) unit on larger schemes.
Empty Property Rates
In April 2008, industrial and warehouse properties became liable for 100% of business rates from which they were previously exempt, if the building in question was vacant.
There is an argument claiming that if a building is undergoing enhancements to make it more sustainable, and is therefore uninhabitable, it should be exempt from empty rates.
The fact that the work being carried out is not maintenance but enhancements, and is introducing something that wasn’t previously there, is key to arguing a potential rates reduction or removal from the list. Thus providing added incentive for owners to make green changes to their properties.
Unfortunately there is no clarification on this argument, it depends on what is being done during the 'revamp', how much the works costs and how long the works will last.
Essentially each case is treated on its own merits, but the more involved the works are, the longer they last and to an extent the more they cost, the more likely it is that the rating assessment can be deleted from the rating list.
The way forward
It is true that incorporating sustainable design principles into new construction is far easier and more cost effective than retrofitting existing stock.
Similarly, many would also argue that sustainable design is still more expensive in new builds than run-of-the-mill schemes, however, non sustainable design is no longer an option and all parties involved from the occupiers, developers, builders and designers need to embrace the change.
Those that don’t could find themselves being left behind as retailers look to use supply chain members with strong sustainable credentials and occupiers look to landlords and developers to provide buildings which meet the modern market needs.
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