Improving existing stock is ‘huge lever’ for sustainability

One of the necessities when looking at the environmental sustainability of a portfolio is to distinguishish between existing stock and properties currently being built.

There is now effectively a blueprint for what sustainable logistics property looks like, said Tobias Kassner, head of research at logistics property specialist Garbe. “We have our own ESG team which works closely with our development teams on how to future-proof properties sustainably.”

“But what we at Garbe Group try to underline every time is not to forget existing stock – 96% of warehouses on the market are existing stock,” he said.

“Here is a huge lever. If we improve the shell, install photovoltaics, improve the installations in those buildings, we really have the possibility to make a huge change in the implementation of sustainable logistic properties,” Kassner added.

Most investors already have an ESG agenda, as do larger tenant companies and it is not usually possible to rent space to them unless the building has a similar policy.

“When it comes to our tenants, the focus has already been put in place by bigger companies who have their own ESG agenda.”

Sometimes it is necessary to explain to smaller companies how things work. The best angle is trying to point out that it’s in their best interest and that they may not need so much energy for heating and lighting.”

Please click on the video above to watch the full interview or listen to the podcast below.