AMB Property Corporation is a leading owner, operator and developer of industrial real estate, focused on major hub and gateway distribution markets in the Americas, Europe and Asia. As of September 30, 2009, AMB’s global portfolio totaled approximately 156.1 million square feet (14.5 million square meters) in 47 markets within 14 countries.
And at AMB, sustainability is a big part of a nimble corporate strategy that’s helping them thrive through hard times. MGB talked to AMB’s Steve Campbell about how it all fits together.
Besides AMB Morgan Business Center in Savannah, which recently won Gold LEED certification, AMB “includes environmentally responsible design specifications in its developments” around the globe. Do you find environmentally responsible design to be a commonly held value in other parts of the world, or is it a tough sell?
Far from being a tough sell, in many places it is a necessity. There is a growing awareness of the importance of environmental responsibility, and growing regulation worldwide in response to it. We strive to exceed the regulatory standards wherever we go—it’s good stewardship and it also helps the overall development process.
Our AMB Kasugai Distribution Center in Nagoya Japan just received a class "S" CASBEE rating--the highest rating of certification by the Comprehensive Assessment System for Building Environmental Efficiency (CASBEE)—the first logistics facility in Japan to do so. CASBEE is the Japanese equivalent of LEED—a ranking standard by Japan's Ministry of Land, Infrastructure, Transport and Tourism that comprehensively assesses a building's ability to reduce environmental impact through energy conservation, resource saving, and recycling of resources, as well as its environmental quality and performance such as workspace comfort and consideration for its natural surroundings.
Some of the design features of AMB Kasugai Distribution Center include the preservation of natural habitat by balancing high density vertical development with protected forested areas, as well as efficient building systems that reduce energy use and operating costs.
We’ve also developed sustainably in Tokyo. AMB Shinkiba Distribution Center is the first logistics facility to receive an “A” CASBEE rating for an existing building, a significant accomplishment. The multistory facility incorporates sustainable features including a green “living” roof designed to insulate the warehouse space, reduce urban heat island effect, and minimize storm water runoff.
Are there ways in which being a good steward of the balance sheet equates to being a good steward of the environment?
Many times, best environmental practices and best business practices go hand in hand. An example would be building vertically in places like Asia, where real estate is prohibitively costly. In the United States, and elsewhere, we concentrate on infill, which in itself is more sustainable and works with our overall strategy.
We operate and develop properties using environmentally responsible and energy efficient specifications, modernizing our operating properties with energy saving technologies that benefit our customers and AMB. We also work with industry associations and decision makers, globally, to promote standards that will speed the adoption of sustainable design and construction within the industrial sector.
As market needs change, converting AMB’s properties to new uses is also undertaken with a goal of sustainably repositioning existing sites and resources. AMB is committed to conducting business in ways that consider the environment and local communities where we operate, and that is a big part of why we are continuing to thrive. We offer our customers a significant opportunity to reduce their carbon footprints by minimizing transportation costs. Our infill focus is about locating our customers closer to their customers, ultimately reducing environmental impacts while increasing efficiencies.
Anyone who would like to know more can visit our website (amb.com/sustainability), dedicated to sharing information on the company's sustainability initiatives and global best practices. There’s an online corporate sustainability report there with lots of information.
How is AMB faring through the global “economic reset?”
It is still a very challenging situation for industrial real estate, and it probably will stay that way for a little while. Historically, it takes two to four quarters after the GDP turns positive for the industrial real estate vacancy rate to start falling
Longer-term, as long as there is global trade there will be a demand for our facilities. For every 1 percent of GDP growth, global trade grows by 3.5 percent, which translates into increased demand for industrial real estate in the United States.
AMB is extremely well positioned to facilitate global trade on every level. Our buildings are located in 47 markets in 14 countries and are occupied by approximately 2,600 customers. We focus on markets with long-term trade growth and a requirement for world-class facilities to support global supply chains and efficient distribution operations.
This year, we released a research report entitled, "Inside the Global Supply Chain: Production, Trade, Inventories and a New Demand Model for Industrial Real Estate." One of the key findings was that production and trade are in fact rebounding globally. So there is good news out there.
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