Are shed developers too mean to be green?

Pricey oil and red tape have hit the shed market. But many players see profit in sustainability

Rising oil prices, tighter EU environmental controls and rising demand for eco-friendly sheds mean that logistics developers are under pressure to build sustainable units. But with the credit squeeze hitting already small margins, the industrial and logistics sector could be in danger of becoming too mean to be green.The environment-versus-profit debate has divided opinion within the industry. Some believe that profit will always take priority over eco-initiatives. Others say that sustainability and efficiency are compatible. Large shed developers such as Gazeley, Gladman, Goodman, ProLogis and Segro are leading the way in carbon-neutral schemes, but investors and developers agree that although green issues are important, there will be no major change until the weight of money results in action."While the desire is there, there is not an overwhelming desire to pay for it. The challenge for developers is to create sustainable features at minimal cost. We also hope to show that sustainable features result in lower operating costs," says Mo Barzegar, European managing director of AMB Property Europe.Mounting EU legislation, including the Energy Performance of Buildings Directive, which aims to cut carbon emissions for residential and commercial property, has prompted corporate occupiers to work with developers and install such green features as recyclable carpets, organic paint, solar hot water systems and ground-source heat-pump technology. Some landlords and tenants have even begun to implement green leases, ...