ProLogis 2008 Sustainability Report

U.S. Department of Energy Study

[EN6] In fall of 2008, the U.S. Department of Energy (DOE) awarded approximately $15 million for a new, national study to speed market adoption of current technologies and design solutions that yield significant, measurable savings for commercial buildings.

The DOE solicited proposals from national laboratories to achieve cost-effective energy savings of 50% above ASHRAE Standard 90.1-2004 for new commercial building designs and 30% for retrofits of existing buildings. The labs targeted major retailers, financial institutions and real estate firms as partners in the study; ProLogis was included in a proposal from the National Renewable Energy Laboratory (NREL), one of the nation's leading laboratories for renewable energy and energy efficiency research and development.

As part of the study, we committed to working with NREL to review typical warehouse design specifications and enhancements using computer-run simulations that identify the impacts of design and technology changes on energy use. So far, we have attended meetings with the DOE, NREL and other participants, and will focus our 2009 efforts on the retrofit building. From the ProLogis perspective, we hope to gain knowledge of cost-effective upgrades we can use to greatly improve the energy performance of our existing portfolio, while also helping to improve the energy efficiency of the commercial building stock as a whole. (http://ir.prologis.com/releasedetail.cfm?ReleaseID=337189)

The total amount of high efficiency lighting installed is not directly under ProLogis’ control; our customers choose whether or not they want to upgrade their lighting systems in existing facilities and incur the related costs. In addition, current economic circumstances are causing many companies to reevaluate their priorities and cut back on certain non-critical activities, which can include sustainability efforts that require capital outlay. Despite this, through our frequent customer contact we will continue to promote high-efficiency lighting to our customers, as it typically achieves a fast return on investment and reduces their operating costs. ProLogis also will continue to invest in high-efficiency lighting to make its vacant space more attractive to potential customers. However, because of economic circumstances we will likely commit less of our own capital to lighting upgrades than we otherwise would.