Aligning ESG goals: LXP’s collaborative approach to Green Building Standards

Setting new standards in sustainable practices by aligning tenant and landlord ESG goals and focusing on expanding its sustainable efforts.

BREEAM Good (44.1%) 
Version: BREEAM USA In-use Version 6
Asset name: 21 Inland Parkway
Assessor: Craig Allen
Consultant organization: RE Tech Advisors

 

About the Asset

21 Inland Parkway is a Class-A warehouse and distribution facility located at The Cubes at Inland 85 Industrial Park, a 324-acre industrial warehouse center in Greer, South Carolina. Situated within 1.5 miles of I-85, the site boasts a prime location with direct access to the Greer Inland Port and Greenville-Spartanburg International Airport.

The cross-dock building, which totals 1,318,680 million square feet, is fully leased to a leading home improvement retailer and features top tier amenities, including 36’ clear height, a 60’ speed bay, 215 dock doors, 745 trailer parking spaces and LED lighting.

Overview of green strategy and environmental challenges

LXP Industrial Trust is a leading acquirer, owner, developer, and operator of premium industrial real estate across the U.S. In its commitment to sustainable practices, LXP seeks to address misconceptions and overcome challenges surrounding the sustainability of industrial assets by positioning green building certification as a high-priority initiative within its industrial portfolio.

In choosing BREEAM specifically for the certification of 21 Inland Parkway, LXP considered several points of alignment between its internal strategy for achieving ESG goals and BREEAM’s science-backed assessment of building performance — including BREEAM’s In-Use assessment standard offering for the certification of operational industrial assets, which has historically been a challenge to achieve within the sector.

The facility operates under a triple-net lease structure, meaning that LXP as the asset owner is not directly involved in the day-to-day operations of the asset and does not have access to building-specific utility data and information. Despite the challenge this leasing model often poses to the pursuit of green building certification, the BREEAM certification process helped LXP support collaboration and engagement with the building’s tenant.

In line with its environmental, social, governance and resilience (ESG) and resilience goals, LXP is thoughtful in working with tenants whose goals are aligned with its own. Combining this initiative with the resources provided by BREEAM has established a significant opportunity for LXP to serve as a sustainability leader in the industrial real estate industry, setting new standards in sustainable practices by aligning tenant and landlord ESG goals and focusing on expanding its sustainable efforts.

Because Greenville-Spartanburg is one of LXP’s target markets, the expansion of the company’s sustainable footprint in South Carolina is a priority. The firm is implementing dedicated ESG and resilience efforts at properties across South Carolina and is wholly committed to growing its footprint in the area by expanding the number of sustainable industrial buildings within the Southeast region of the U.S.

How has the BREEAM assessment benefited the project?

At LXP, we are committed to creating a thoughtful sustainability strategy that bolsters the success of our portfolio and the value generated for our stakeholders. Achieving BREEAM certification has served as a significant milestone as we work to improve sustainable performance within the industrial real estate sector, and we are eager to continue exploring best practices and opportunities for advancement as we progress on our ESG journey.

Leslie Moore, Senior Vice President, Director of ESG and Corporate Operations at LXP Industrial Trust

Including resilience in its ESG approach sets LXP apart from many others, and BREEAM’s robust focus on resilience throughout its In-Use standard demonstrates the alignment both organizations have in taking a comprehensive, integrated approach to addressing sustainability. LXP actively works to identify physical risk exposure and implement mitigation measures across its portfolio, and at 21 Inland Parkway, BREEAM helped to facilitate the achievement of these goals by recognizing LXP’s in-depth resilience assessment at the asset level.

The educational tools and resources provided by BREEAM have also assisted LXP in fostering meaningful sustainability conversations with key stakeholders, including the tenant at 21 Inland Parkway, that underscore the company’s commitment to sustainable advancement.

Notably, the benefits of achieving BREEAM certification go far beyond the 21 Inland Parkway facility. Influenced by the building assessment process necessitated via BREEAM certification, LXP has begun implementing significant changes to the sustainability clause in its leasing agreements to ensure that new and returning tenants cooperate with green building certification processes and align on sustainable initiatives. By deploying this green leasing language across its lease agreements, LXP is setting an important standard toward a more sustainable portfolio.

The BREEAM assessment helped the property management team measure and report on sustainability practices and performance at the asset, including:

 

Health and Well being:

The indoor seating and dining areas at 21 Inland Parkway are equipped with facilities to prepare food and drink. With unrestricted access during operational hours, these rest areas are designed to comfortably serve building occupants. The communal spaces are easily accessible to all users, including those with disabilities.

Drinking fountains and electric water coolers are available throughout the warehouse to ensure building occupants have plenty of access to drinking water throughout their day.

Energy:

The building’s HVAC system was designed to meet California Energy Code, CCR, Title 24, Part 6, and Chapter 4 of the CCR, Title 8. This code meets ASHRAE 62.1 ventilation for acceptable indoor air quality.

All office and warehouse lighting is 100% LED with occupancy sensors and dimming controls throughout. More than 80% of the relevant occupied spaces or lighting zones have accessible light switches and controls that can be operated by the asset users.

Water:

 The property’s utility services for irrigation, fire and domestic water are metered at the whole building level.

Water closets located in all 21 Inland Parkway restrooms are 1.6 gallons per flush. Office restrooms are fitted with touchless auto-flush control valves and warehouse restrooms are fitted with manual flush valves. Urinals are 1.0 gallons per flush and are fitted with touchless auto-flush control valves.

Handwashing sinks are 0.5 gallons per minute and are fitted with touchless auto flow control valves.

All appliances and equipment requiring routine service or testing are fitted with water shut-off isolation valves.

Resilience:

The building is located in Flood Zone X, which denotes an extremely low flood risk. Surface water run-off rates are mitigated by large detention ponds that capture, detain and release stormwater runoff at reduced rates.

The main entry and lobby, public corridors, restrooms, and break rooms at 21 Inland Parkway are fitted with hard-wearing and easily washable tiled flooring, while the warehouse flooring is polished concrete.

In order to protect the warehouse area’s interior walls, equipment, office spaces, occupant areas and exit points, the space includes bollards and guardrails throughout. Vulnerable external areas of the buildings, including the loading dock bays, are fitted with loading dock bumper guards and bollards at ramps and equipment locations.

The building was constructed with robust external walls comprising precast concrete panels spanning from floor to deck as well as steel doors.

Waste and resources:

Waste management practices allow for optimal sorting, storing and collecting of operational waste, including baled cardboard and Styrofoam, wood pallet storage and recycling, a trash compactor and secure document shredding services.

Transport: 

Service delivery routes, maneuvering areas and access points at 21 Inland Parkway are fully independent from the parking lot areas and pedestrian and cyclist routes, providing safe access to the building.

Land and ecology:

The ecological features of 21 Inland Parkway include traditional landscaping and planted areas, which account for 54.1% of the asset’s footprint.

Pollution:

A light liquid separator is installed in the warehouse vehicle wash bay and battery charging area to protect the drain systems from battery acids, grease and dirt from the warehouse.

The on-site scrubber vehicles and forklifts are electric and do not utilize gas or propane.

What value does certification bring to the development?

We are proud to be working with a market leader like LXP Industrial Trust to demonstrate the many possibilities for sustainable improvement facing owners and operators within the industrial real estate market. The certification of 21 Inland Parkway is just one example of how ESG risks and opportunities can be identified and managed in the industrial sector through a comprehensive and intentional ESG strategy.

We look forward to seeing the ripple effect across the wider LXP portfolio and its broader ESG and resilience initiatives that stem from this BREEAM certification and the holistic assessment of sustainable strengths and weaknesses across the asset and at the organization as a whole.

Breana Wheeler, US Director of Operations at BRE 

Achieving BREEAM certification solidifies LXP’s leadership and dedication to sustainability in the industrial real estate sector, where such practices are recognized as significantly challenging. Despite these prospective roadblocks, LXP continues to set an example within this sector, proving that sustainability can and should be a priority across every aspect of the built environment.

BREEAM’s science-backed assessment method has proven invaluable in supporting LXP’s forward-thinking efforts and has acted as a catalyst for future green building initiatives across its asset portfolio. BREEAM simultaneously provided LXP with the insight and resources to achieve tangible environmental improvements, while also improving and safeguarding the building’s long-term value and viability.

BREEAM certification has been instrumental in highlighting science-backed data that demonstrates the resilience of 21 Inland Parkway. It also signals LXP’s commitment to implementing leading sustainable real estate practices. BREEAM is globally recognized for its credibility and rigor, thus enhancing the site’s marketability to global investors.

About BREEAM

BREEAM is the world’s leading sustainability assessment methodology for masterplanning projects, infrastructure and buildings. It recognizes and reflects the value in higher performing assets across the built environment lifecycle, from new construction, through performance in operation, to refurbishment. BREEAM does this through third party certification of the assessment of an asset’s environmental, social and economic sustainability performance, using standards developed by BRE. This means BREEAM rated developments are more sustainable environments that enhance the well-being of the people who live and work in them, help protect natural resources and make for more attractive property investments.

Learn more at https://wpe.bregroup.com/products/breeam/.

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