In this article we look at what the industrial developers are doing to incorporate environmental initiatives into their developments. Take time to review the schedule of initiatives Strand Estate incorporated into their Duck Creek Auburn development, it shows what can be done and the benefits that flow from the extra thinking and investment.

Until now the industrial sector has shown very little interest in adopting good environmental practices – too hard in the time available, to expensive – it’s a low margin business, there is no demand or drivers for change - yet. Why should I when no one else is?

Logistics and warehousing are fast moving, low margin businesses that are driven by fixed time contacts between manufacturers and logistics companies, after which the buildings may become redundant or need major change to suit the next occupant. They need buildings that are delivered fast and at low cost. They just have to have easy truck access inside the development to the loading docks and by their location to the highways and customers. Some say the biggest environmental impact is from the goods that are stored, rather then the buildings themselves.

Last year, when reviewing a proposed design for a 20,000sqm shed, the only items in the environmental initiatives category were the solar heated hot water and an extended fire water tank. The solar water heater saved on the installation of a gas pipeline, the warehouse shower had an electric water heater. Not much innovation here. Industrial tenants unlike their commercial and government counterparts just have not really cared this far.

"As a sector, we've let ourselves down a bit", says David van Aanholt, chief executive officer – Asia Pacific at Macquarie Goodman said to the PCA Magazine. "[Well] 'let down' is probably a bit harsh, but I think now we really need to face up to reality."

So is there any interest in being environmentally responsible? Are there any signs? Is anyone doing anything?

At the smaller end David Walker’s Strand Estates recently completed development at Auburn in NSW was built broadly in accordance with the Green Building Council’s Office tool. David Walker of Strand Estates used the tool as a basis for setting environmental standards at Auburn. Strand was not going Green to achieve a rating; there is no tool available yet for Industrial property, the move to go Green was to reduce the environmental impact of the development and also to improve the space inside the units for their occupants making them more pleasant to be in and cheaper to run, by the use of simple measures. Details of the measures used are described in the Duck Creek Environmental Measures section below. The section of Duck Creek for the first time in decades has clear water and fish, and no more shopping trolleys.

Another major industrial developer making efforts is Investa. At Huntingwood West they have made a 2.6 Ha riparian zone around their new industrial sub-division which is designed to provide a buffer and to maintain bio-diversity of the local area.

The Simplest Things are Free

The first thing in design is orientation, it has a major impact on the natural lighting and heat loads, two free hits which many developers miss. It is the simplest thing to get right and it has a major impact on the building. Too often buildings are designed with no regard to the site. Strand found that by taking care of the orientation of the building they maximised natural daylighting reducing the need for artificial lighting very significantly and cutting heat loads.

In their current estate planning, Macquarie Goodman’s Kym Dracopoulos is investigating rainwater harvesting on their 150ha M7 Business Hub at Eastern Creek. The roof areas are so big that the water that will be caught will far exceed what is required for the development and MGI is looking at the feasibility of treating and then feeding the excess water into Sydney’s supply system. Companies like MGI has a wonderful opportunity to change their impact with relatively easy wins that may even prove to be cost neutral or even post positive.

Industrial developers need to change their designs to incorporate environmentally sensible initiatives. Increasing insulation performance is a low one off cost that lower air conditioning costs, similarly installing double-glazing also reduces the costs to cool. The returns are generally good at today’s energy costs, let alone the likely future costs that will come with the next few rounds of energy contract negotiations.

Industrial buildings are often perfectly located and oriented so that solar and wind power could be added very simply. The biggest problem is in the closed minds of many of the developers. It is good to see that Strand, MGI and Investa have open minds and are improving the impact of their developments, lets only hope that in raising the standards others will be forced to follow.

Good news though, The Green Star – Industrial rating tool enters the development stage this winter and is expected to go into PILOT phase at the end of 2007. Look out for some changes and higher standards in the future.

Junction Estate, Duck Street, Auburn

Environmental Measures:

• When the site was purchased it was heavily contaminated as a result of its previous use as a tannery and chemical factory. Scheduled Chemical Waste was stored on the site under the terms of a licence issued by the EPA. This has been removed and destroyed and allowed the removal of an impervious membrane and the cessation of regular groundwater testing. In addition, the asbestos buildings located on the site have been removed.

• A brick and concrete lined drainage channel has been replaced by a more natural form of watercourse and the creation of a Riparian Zone that significantly enhances water quality and provides a habitat for fish and other creatures.

• The development incorporates a grey water tank with a capacity in excess of 120,000 litres. The tank captures all roof rainwater and is used for the flushing of toilets and irrigation. It is estimated this will lead to a saving of 2 million litres of water a year.

• The glazed façade of each unit is provided with high level opening windows which, when coupled with the sliding window in the wall to the warehouse, provides efficient cross ventilation and allows office occupants to operate for much of the year without air conditioning.

• Each unit is supplied with a low energy and efficient reverse cycle air conditioning unit.

• Each unit is fitted with a 340 litre solar hot water heater which also serves the shower.

• The units are fitted with low energy light fittings throughout.

• Movement sensors and timers ensure that lighting is not left on unnecessarily.

• The office areas in each unit are provided with carpet tiles that are 100% recyclable. At the end of their life, the tiles are sent back to the manufacturer where the backing is stripped off, melted and reused. The fibre of the carpet is removed, cleaned, redyed and reweaved.

• The roof of each warehouse contains several ventilators which assist in providing cross ventilation and enhancing the working environment.

• The ceilings in each office area are provided with Armstrong Dune ceiling tiles with a high proportion of recycled material used in their construction, plus high level performance measures such as acoustic and heat insulation qualities and reflectivity.

• The office and warehouse roofs are provided with high performance R2 ceiling insulation material that assists in reducing energy costs and maintaining a comfortable working environment.

• Each warehouse is provided with a sizeable amount of translucent roof sheeting which allows the penetration of significant natural light.

• Each shower is fitted with a AAA rated showerhead. Each WC is fitted with a AAA rated dual flush system. Waterless urinals have been installed in Units 2 and 10.

• The northern elevation of the office component in Unit 6 – 11 is protected by the overhang of the mezzanine roof. This provides protection from direct sunlight during summer months and allows the penetration of warmth during the winter.

• There are tangible savings in occupancy costs to be enjoyed as a consequence of some of the initiatives introduced to the project.

• It is estimated that the use of water efficient fixtures and fittings and the grey water tank system will be generate savings of around 2,000,000 litres of water a year. Based on current water charges, this represents a saving of around $220 per annum per unit.

• The excellent natural light within the warehouse areas is estimated to save occupants approximately $870 per annum in lighting expenses.

• The energy efficient reverse cycle air conditioning, when in heating mode, is estimated to generate savings in the order of $690 per annum when compared to other forms of heating.

• The use of high performance roof insulation is estimated to generate savings of approximately $650 per annum per unit.

• The low energy light fittings utilised in the office areas are expected to generate a saving in energy costs in the order of $90 per annum per unit.

• Each toilet is fitted with movement sensors to ensure lights are turned off when the toilets are not in use. It is estimated this will generate annual savings of $30 per unit.

• The solar powered hot water system is estimated to result in energy savings of $180 per annum per unit.

Based on the above, the approximate saving per unit as a result of the various initiatives is $2,745 per annum based upon 2005/06 charges.