Green Development: Dollars and Sense
In addition to its eco-friendly benefits, facilities that have LEED certification can attract tenants and may lead to lower total occupancy costs, according to
some property managers.
The Ameriplex at Elm Hill warehouse property in Nashville recently received LEED certification for the core and shell of one of its buildings in March.
The facility, owned by full-service real estate firm Holladay Properties, is a 36-acre infill industrial site in a core industrial market close to the downtown area, according to Allen Arender, project manager and vice president of development at Holladay.
Green features of the building include natural light and daylighting panels in the warehouse, a reflective white roof on the building, and a system to capture rainwater for irrigation.
The LEED design decisions, which the South Bend, Ind.-based firm says has attracted tenants, were based on return on investment analyses, according to the firm’s officials.
“Our message has been lower total occupancy costs,” Arender said. “Maintenance and operating costs are (passed down) directly to the tenant. We find ourselves in new space, and we’re competing well with older generation space because of the efficiencies that Ameriplex can offer.”
The site was designed to reduce energy waste with motion sensors and dimmers for the lighting in the warehouse and exterior lighting in the parking lot for when the area is not occupied.
The facility features low-maintenance native landscaping — with banks covered in wildflowers, for example — that are both aesthetically pleasing and sustainable, according to Tom Gibson, senior vice president and partner of Holladay Properties and founder of the Nashville office.
The facility also features permeable parking in many areas, which requires less retainage on site, allowing water to go into the water table naturally in contrast to what traditional asphalt paving would have.
The property managers say they have been able to demonstrate that with the green measures, the value of the building is higher.
“I think the value that Ameriplex offers, we’ve been able to do this and get the building as a LEED building and we’re not more expensive than the next guy,” Arender said.
Utility savings are estimated at between 15 to 20 percent compared to similar conventional facilities, the officials said.
“In addition to that, the location and design of the park is aesthetically pleasing — a gated industrial park, which is a little bit different,” Gibson said. “We have been very successful marketing both the aesthetics of the park and the LEED green features.”
The facility’s central location and proximity to freeways also offers distribution efficiencies and adds to sustainability measures, according to officials.
The property managers said they expect that the sustainable features will lead to lower tenant turnover. Lease lengths range from five to seven years in length.
Along with its recent LEED certification, Holladay Properties also secured its newest tenant, National Recovery Technologies, who will occupy the remaining 20,000 square feet of the building.
Officials from the recycling equipment manufacturer and engineering company said the LEED certification was an important factor in deciding on their new home.
“As a company that works directly in the environmental industry, it is critical that our facility reflects our business principles and Ameriplex at Elm Hill is a perfect match for us,” said Ed Sommer, President and CEO of National Recovery Technologies.
The company will join international logistics company DHL, Lennox Hearth Products and the Holladay Properties office in “Building A” on the site.
A second LEED-designed building is currently under construction, scheduled for completion this summer, according to the firm’s officials.
Los Angeles-based event planning company Classic Party Rentals has already signed on to occupy 52,000 square feet of the 135,000-square-foot facility. The remaining space is available for lease.