Principal Real Estate Leverages BREEAM to Certify Nuanced Industrial Assets

Principal Real Estate turned to BREEAM for a more holistic approach focused on enhancing asset performance, operational efficiency, and sustainability.  Ultimately, the firm chose BREEAM certification due to its global recognition, rigorous science-based standards, and proven strategies for certifying industrial properties, which often pose unique challenges to green building certification.

Like many industrial assets, these properties are leased to tenants who pay utility bills directly, often times limiting direct access to the building-specific utility data that is typically required for green building certification. Knowing this lease structure has historically been an obstacle for building owners wishing to certify industrial assets, Principal Real Estate turned to BREEAM for a more holistic approach focused on enhancing asset performance, operational efficiency, and sustainability.

The BREEAM certification methodology addressed Principal Real Estate’s challenges by encouraging tenant collaboration and thus resolving the issues around obtaining utility data from tenants. Rather than analyzing direct utility consumption, BREEAM’s Part One Asset Performance certification evaluates installed systems and management practices including HVAC efficiency, lighting types, land use, and water-efficient fixtures. This approach provides a holistic view of a building's potential for efficiency and sustainability and covers a broad spectrum of environmental impacts, making it particularly useful for industrial assets. Along with tenant collaboration, this strategy allowed Principal Real Estate to demonstrate meaningful sustainability progress without relying solely on tenant-reported data. 

Health and Wellbeing  

To support tenant employee well-being, all assets contain breakrooms with seating areas and facilities for food preparation.   

Energy 

The assets employ several energy-efficient strategies, including electric water heaters, to minimize environmental impact and reduce operational costs. Four of the noted assets use energy-efficient LED lighting throughout the interior, and all assets’ exterior locations use LED lighting controlled by energy-saving devices. In addition, the San Leandro asset utilizes heat pumps for more efficient and sustainable HVAC heating and cooling.  

Water 

 All properties implemented sustainable water management by installing half-gallon per minute flow sinks, 0.125 GPF urinals, and highly efficient cooling systems. The San Leandro Business Center installed bioretention planters designed to effectively manage stormwater runoff, while permeable landscaping covered over 48% of Power Secure's site. Both strategies promote groundwater recharge and minimize impact on local water bodies while reducing water usage.  

Resiliency  

The assets are designed with long-term durability in mind, incorporating resilient features such as durable concrete pathways to deter pedestrians from walking on landscaped areas. Each building exterior includes dock bumpers at all truck dock loading bays. All warehouse interiors include railings and bollards to protect against internal trolley movement. Office interiors include durable, easy-to-clean flooring in high-traffic areas.  

Transportation 

Encouraging sustainable transportation options, the Oakesdale Ave SW and Power Secure assets are within easy walking distance of multiple amenities and bus stations via a safe pedestrian route. The bus stations boast 30-minute service frequency at peak times for accessible public transport.

Principal Real Estate’s achievement of BREEAM certification for five of its assets aligns with its broader sustainability goal of 50% building certification by 2035. In addition, many of Principal Real Estate’s investors factor sustainability considerations – such as GRESB scores – into their investment decisions.   

Since building sustainability certifications comprise a significant part of GRESB scores, BREEAM certification allowed Principal Real Estate to demonstrate strong, science-backed sustainability performance to stakeholders. The tangible operational performance benefits in energy efficiency, land use, water conservation, and waste reduction may also contribute to overall asset value and help position Principal Real Estate as a leader in sustainable real estate investment.    

By overcoming challenges common to certifying the industrial sector, these five BREEAM-certified properties exemplify Principal Real Estate’s dedication to sustainability and set a new benchmark for environmental stewardship in the industrial real estate sector, paving the way for a more sustainable and responsible future.