Smart/green buildings

Gone are the days where warehouses were considered simply as ‘sheds’ or big boxes. The latest version of logistics assets are state of the art facilities powered by automated intelligence and energy efficient innovation. As the complexity of these buildings increases, so does the construction and real estate expertise needed to deal with their inter-locking building contracts and infrastructure including roads and utilities.

Combatting climate change now also flows through everything logistics businesses do. Logistics players are striving to reduce their carbon footprint by investing in energy-efficient buildings; using green delivery solutions such as bicycles and electric vehicles for first and last mile deliveries; and encouraging green initiatives among their supply chain partners. Everyone now knows; there is no point delivering parcels post haste, if you are destroying the planet while you do it.

Did you know?

ESG is rocketing up the agenda for all real estate stakeholders (be they developer, investor, occupier or lender) and so it’s an inevitable consequence that ESG considerations are becoming a more visible and integral feature of commercial leases. The “green lease” is evolving as a result, whereby landlord and tenant agree to move beyond the usual full-repairing and- insuring mold and introduce additional lease provisions covering the likes of: energy efficiency, waste management, data sharing and even controls on repair, alteration and reinstatement that are linked to environmental and sustainability standards. We are acutely aware that there isn’t a one size fits all approach to ESG in real estate and so we can work with clients to tailor our advice, drafting and due diligence to their particular environmental and sustainability ambitions also with regard to the nature of the land and buildings concerned. The “green lease” is an ever-evolving concept and so let us keep you up to speed on the latest trends and developments in this field.