Industrial Real Estate
Industrial developers investing in green building
Atlanta Business Chronicle - by Douglas Sams Staff Writer
Dorel Juvenile Group Inc. recently leased about 150,000 square feet within Savannah’s AMB Morgan Business Center — one of the Southeast’s first “green” speculative industrial parks.
Dorel, a manufacturer and distributor of children’s products, will move into Building 100, where it wants to launch an East Coast distribution network similar to its West Coast model.
High fuel costs, growing demand for its products in the eastern United States and increasing import volumes drove its interest in Savannah. AMB’s effort to limit the development’s effect on the environment also played a role in the decision, Dorel Juvenile Group Inc. said.
AMB Property Corp., the San Francisco REIT that entered Georgia’s industrial real estate market in 1995, wants to be at the forefront of LEED, or Leadership in Energy and Environmental Design. It’s marketing AMB Morgan Business Center as the Southeast’s only speculative industrial development to meet the standards of LEED silver. LEED classifications include silver, gold and platinum, with each designation requiring greater steps to lessen a development’s impact on the environment.
“Five years ago no one was talking about LEED,” said Steve Cross, vice president of development for AMB’s East region. “Now, [industrial] users and major retailers demand that their supply chains become greener.”
AMB is not alone in emphasizing green development. Closer to Atlanta, Commonwealth Southeast LLC is developing a 440,000-square-foot distribution building at Braselton Distribution Center along Interstate 85. Commonwealth is also seeking silver certification in the U.S. Green Building Council’s LEED program.
Both AMB and Commonwealth reflect the “green movement” trend, now well under way, that’s being led by a young workforce that has made its employers take a hard look at their impact on the environment.
Expect new green developments to focus on the Port of Savannah, where Dorel will use AMB’s 100 Building to reconfigure its global supply chain.
Dorel reflects that companies are trying to make their distribution networks more efficient in the face of high fuel costs, said AMB CEO Hamid Moghadam. AMB is developing industrial sites in the coastal markets and the ports, a strategy that should reduce travel time and fuel expenses for prospective tenants. AMB Morgan Business Park is expected to total more than 3 million square feet of distribution space. Its global industrial portfolio is almost 155 million square feet, with only a handful of projects meeting LEED certification.
However, every new development AMB launches will qualify for LEED, the company said. Future projects will use more concrete to reflect sunlight and more fluorescent light to save energy.
“In the end, [green] buildings may cost a little more, but the investment gives you a better product,” Cross said.
GWINNETT RENEWAL
Menlo Worldwide Logistics — a third-party logistics company — recently renewed its 256,700-square-foot lease at 3200 Shawnee Industrial Way in Suwanee. The five-year lease began Aug. 1.
Menlo will use the building as a warehouse and distribution center for NCR Corp., a technology company that focuses on the retail and financial sectors. Prudential owns 3200 Shawnee Industrial Way.
ON THE MOVE
Waste Pro USA Inc. will lease about 23,000 square feet at Selig Enterprises Inc.’s 3512 Oakcliff Road. Waste Pro is a privately owned regional solid waste collection and disposal company headquartered in Longwood, Fla.
It expects to have about 90 employees at the Oakcliff Road location. To accommodate their growth and maintain coverage of all sides of the Atlanta market, Waste Pro moved from a facility on South Old Peachtree Road.
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