Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/77480
The environ- BETHESDA ROW'S LEED-CERTIFIED ADDITION HOUSES AN EQUINOX GYM. to hire LEED-accredited designers. "We recommend they hire LEED-accredited professionals and design their stores us- ing sustainable practices," said John Ts- chiderer, vice president of development. The Green Box program helped the 40,000-square-foot addition to the Bethesda (Md.) Row mixed-use center earn LEED Gold certification last year. And one of the largest tenants in that space, an Equinox fitness club, earned LEED Silver. The addition, completed in April 2010, was the first project to re- ceive a building permit after the county began requiring that commercial build- ings bigger than 10,000 square feet be built to LEED standards. For many tenants there are market- ing benefits associated with building environmentally efficient stores, says Tschiderer. Some landlords are even helping tenants market their environ- mental credentials. Lisbon, Portugal– based mall owner Sonae Sierra, which has properties in South America, Eu- rope and Africa, introduced an awards program that recognizes tenants for best practices in environmental man- agement. The focus of the program al- ternates yearly between environmental management and health-and-safety per- formance. The awards cover three cat- egories: large retailers (those with more than 10 shops), smaller retailers, and hypermarkets/supermarkets, which are subject to more stringent regulations. 42 SCT / SEPTEMBER 2012 mental award, called the Planet Si- erra Award, was last given in 2010. The winners in Portugal included fashion chain C&A;, recog- nized for its store at RioSul Shopping, in Seixal. The award was for C&A;'s ef- forts to improve waste separation and reuse, to encourage customers to economy in their use of packaging, and to promote green products. The win- ners of the Best Tenant awards receive the benefit of Sonae Sierra's marketing efforts surrounding the program. Such recognition has inspired participation, says Elsa Monteiro, who heads Sonae Sierra's sustainability program. Tenant engagement has been critical in help- ing the company achieve sustainability goals, she says. "It is crucial that tenants are aligned with us," Monteiro said. "They are visible to the public and vital to the implementation of our own pro- cedures." Columbia, S.C.–based Edens rolled out an optional green-lease program in 2010 to engage and educate tenants, particularly the smaller ones. Leases are tied to an Edens sustainable-practices guide, which is distributed to tenants, imposes certain requirements on the participants and makes recommenda- tions. The requirements are simple, low-cost measures, such as replacing incandescent lamps with compact flo- rescent bulbs and turning off the lights in unoccupied rooms. For motivation, Edens shares with tenants the accounts of its own successes in reducing energy and water use, and reducing costs as a result. Several years ago the company set a goal of reducing electricity and water use in common areas by 20 percent by 2013, and officials say it is on track to meet that target. "If we are showing ten- ants that we are saving money, it makes a lot of sense from their perspective for them to look at their own behavior in terms of energy use and other sustain- ability issues," said William C. Caldwell, a managing director who oversees the company's sustainability program. The green lease program has caught on. Since it was introduced, some 50 percent of the leases signed have been green ones, according to Caldwell. Of those, 65 percent have been new leases, and the rest renewals. "Many national and some regional tenants have their own sustainability programs in place," said Caldwell. "They will generally fol- low their own programs. But we have been able to get a majority of smaller tenants to sign on." Indeed, small tenants may be more inclined to take simple steps to operate sustainably if they have a better under- standing of the cost savings, says Kimco's Teichman. One of the biggest opportu- nities for driving change among small tenants involves lighting improvements, he says. The cost savings there tend to be relatively constant, he says, whereas sav- ings from other types of improvements, such as replacing HVAC systems, can fluctuate with variables like the weather. Rather than impose mandates, Kimco is evaluating a market-based approach to the issue of antiquated lighting among many of its small-shop tenants, much as it has done with its solar-power program for large tenants. At six centers where it has huge solar panel installations, Kimco generates income on the sale of electricity gener- ated by those panels to large retailers. For most retailers, electricity represents the second-largest operating expense, be- hind payroll, Teichman says. "You have seen major retailers go through exten- sive and systematic programs to upgrade lighting," he said. "I believe those same opportunities exist in small-shop ten- ants spaces." SCT