From sustainable agriculture to sustainable gifts for the holidays, “sustainable” is a word thrown around quite often these days, and the commercial real estate industry is no exception. So, what is a sustainable warehouse exactly? Let’s take a closer look.
What Is a Sustainable Warehouse?
A sustainable warehouse is a logistics facility that features energy-saving equipment and materials designed to reduce greenhouse gas emissions.
Limiting greenhouse emissions is important because these gases trap heat as they accumulate in the atmosphere, contributing to climate change. That’s why companies across different industries, including logistics, are pledging to reduce their emissions.
The range of sustainable solutions is increasing at a fast pace, and now includes electric industrial vehicles such as forklifts, more energy-efficient materials, and motion-activated lights, among others.
In theory, a sustainable warehouse sounds impressive. But what does one look like in real life? According to a recent survey, here’s how industrial and logistics occupiers are planning to meet their net-zero carbon targets:
- 49% Switching to LED lighting
- 37% Use of alternative energies on-site (such as solar panels)
- 25% Use of electric material handling equipment
- 22% Electric charging points for electric delivery fleet
- 10% Capturing rainwater
Why Should You Care About Sustainable Warehouses?
In addition to the implications for global climate, there are other more immediate arguments to be made for sustainable warehouses.
For example, according to the survey linked above, 72% of occupiers would be willing to pay higher rents to switch to green energy if the premium was equivalent to the total operating cost savings.
Also, a sustainable warehouse can safeguard landlords and tenants from future risks such as regulation changes and fluctuations in prices of fossil fuels.
Finally, new legislation has been passed to offer sustainability incentives with a direct impact on the logistics and warehousing industry. For example, in the case of the Inflation Reduction Act of 2022 this includes:
- Clean energy tax credits to new sources of renewable energy
- New credits for commercial clean vehicles
- $3 billion in grants to reduce air pollution at ports
SoCal CRE Team: The Experts in Warehouse Space in Southern California
At SoCal CRE Team, we specialize in industrial real estate solutions in the most sought-after Southern California markets such as Los Angeles, Orange County, Riverside, Anaheim, and more.
Interested in learning more? Contact us today by telephone (714) 456-0500 or email at gary@ashwillassociates.com.
Disclaimer: This material is for general information and educational purposes only. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
