Düsseldorf East: Creating added value and setting new standards

Large-scale commercial real estate, particularly in the logistics sector, ranks high on the list of key factors when it comes to sustainability, says Ingo Steves.

Just as in other European countries, in Germany, the energy transition is also an issue in the public sector. Ultimately, not only do local authorities have to implement a proactive, forward-looking urban planning policy which takes into account energy-efficient measures, but they also have to increase the proportion of renewable energy in the local energy supply.

In this, they can be supported significantly by the logistics and commercial real estate industry, which can offer not only economic, but also ecological, added value. This is why cooperation agreements are increasingly being concluded.

Sustainability pays off for all

Nowadays, large-scale commercial real estate, particularly in the logistics sector, ranks high on the list of key factors when it comes to ecological sustainability.

Compared with office and residential real estate, such properties have the decisive advantage that their floor area is significantly higher, as is the share of the ancillary costs as a proportion of the total rent. Accordingly, it is sustainable from both an ecological and an economic stance to create a building that is as energy-saving as possible.

Ideally, the property should be climate-positive. In other words, it should generate more energy through the use of renewable energy sources than it consumes. The tenant has the possibility of cost-saving operations, while the lessor has an attractive property. Surplus electricity can be fed into local networks, meaning green real estate is associated with significant added value for local authorities. The basis for this is the largest possible deployment of photovoltaic panels on rooftops.

A demonstration of this is our ‘Düsseldorf East’ project, a logistics property we developed in Wülfrath, between the cities of Essen, Wuppertal and Düsseldorf. The largest roof-mounted photovoltaic plant in North Rhine-Westphalia is being installed here. The plant will supply about 1,400 homes in Wülfrath (around 15% of the entire municipality). This was made possible thanks to close collaboration with the public utility companies in Wülfrath. In addition, a renowned tenant was found in the Vaillant Group, which will create a considerable number of local jobs.

Photovoltaic panels are just one of several measures, however. Heat pumps are also being installed in Wülfrath and other properties; these ensure that buildings are not dependent on fossil fuels. Other possibilities include geothermal energy and battery storage systems, which make the import of electricity at night redundant.

Proximity to ports and rivers

Inland ports have proven themselves to be excellent locations for logistics and commercial operations, providing both ecological and economic added value.

Hydroelectric power at riverside sites can be utilised for climate-neutral energy generation, and waterborne transport is generally associated with lower costs and fewer CO2 emissions than conventional transport by road. In addition, this form of transport lowers the burden on rail and road, as the capacity of a container ship equates to 90 truckloads. Thus, close proximity to an inland port is an important link in a sustainable supply chain, and a major advantage for sites when it come to the diversification of transport routes.

‘Climate-neutral real estate is only truly sustainable if it can be used efficiently across its entire lifespan.’

Ingo Steves, Swiss Life Asset Managers

A good example of the benefits offered by such a location can be seen in the logistics centre at Rhine-Lippe port in Wesel to the north of Duisburg, which was completed in July. The building was developed for Rhenus, the logistics service provider, on a previously undeveloped site with an area of 165,000 sq m.

Swiss Life Asset Managers had acquired it from DeltaPort Niederrheinhäfen, the port association. The property itself has an area of about 86,000 sq m. The majority of the rental area, 81,400 sq m, is taken up by logistics space; the rest is split between office and social areas, as well as mezzanine areas.

The property is characterised by a high degree of flexibility in its usage. It can be leased long term to a single company – as is currently the case with Rhenus. However, the area can also be split into as many as 10 units for different users. The trimodal accessibility of the state-of-the-art service location (via Rhine-Lippe port and the nearby railway in the port of Emmelsum, as well as various motorways), creates not only an alternative to the high-traffic port at Duisburg, but also reduces the burden on the regional road network, thus also benefiting the local population.

Therefore, it will come as no surprise that an additional successful collaboration has been realised at the port in Voerde/Emmelsum, also a member of DeltaPort Niederrheinhäfen. The logistics centre in Voerde, on a 45,000 sq m plot of land, was completed in the summer of this year.

Sustainability meets flexibility

Large-scale logistics and commercial real estate projects only create long-term, ongoing added value if they can be operated efficiently and without additional construction measures in future.

Whereas the Paris Agreement climate objectives and their time frames are known in detail, the usage preferences of logistics companies, the manufacturing sector and similar actors can change very quickly. For this reason, climate-neutral real estate is only truly sustainable if it can be amended in line with the needs of new users once the first rental cycle has expired and if it can be used efficiently across its entire lifespan.

Ingo Steves is managing partner for logistics at Swiss Life Asset Managers.