As one of the largest private owners of distribution space in the country, Heller Industrial Parks, Inc. boasts an inventory of over 16 million square feet of space nationwide, including 12 million square feet in the heavily traveled Northeast Corridor of Central and Northern New Jersey, where the company has been actively greening its portfolio. This includes a $2.7 million, 564-kilowatt system at 16-20 Executive Ave in Edison; and a $23 million, 4.5-megawatts system at 1 Industrial Rd in South Brunswick. Heller began considering solar power when the federal government gave a 30% rebate on installations. Over the next five years, it plans to install 35 megawatts in systems on 45 of its buildings. Heller also recently retrofitted 4 million square feet of its buildings in New Jersey with energy-efficient T8 fluorescent lighting, and has plans to retrofit its entire portfolio, located in Dallas-Fort Worth, Houston, Chicago, Indianapolis, Louisville, and throughout Pennsylvania. We spoke to Heller Industrial Parks, Inc. President Jeff Milanaik about the fact that the company's New Jersey properties are at the forefront of its greening initiative.
Heller Industrial Parks is the largest entity of its kind in New Jersey, with 16-20 Executive Avenue in Edison and 1 Industrial Road in South Brunswick. When and why did you begin to go green? Was it mostly due to cost?
Heller Industrial Parks, Inc. is one of the largest privately held owner/developers of warehouse distribution buildings in New Jersey, as well as the United States. Heller Industrial Parks began the process of "going green" over eight years ago. This process began as a result of our customer-centric focus. We wanted to make our buildings as cost efficient as possible for our customers.
Describe what's been done at the two New Jersey industrial parks in terms of solar power conversion and energy-efficient lighting.
Our first initiative was to replace the existing high bay warehouse lighting fixtures with more energy efficient T-8 fluorescent lighting. To date, we've retrofit over six million square feet or our properties.
About five years ago, we began to take a hard look at photo-voltaic (solar) power systems for our buildings in New Jersey. This again was pursued as an effort to reduce electrical energy costs for our customers. Contrary to most real estate owners, we consciously made the decision to build, finance, and operate the systems completely in-house. In 2009, we installed over one-half megawatts, in 2010 over one mega-watt and this year we plan to install 5.4 megawatts. Over the next five years, we plan to install over 30 megawatts in New Jersey.
How has this decreased the cost of running the properties?
The savings for our customers is huge. The installation of T-8 lighting is saving our customers over 60% of their lighting costs. The savings from solar power is also significant. On average, our customers save 20% on the cost of their electric utility bills, sometimes as much as the equivalent of $0.20 PSF of rent.
How has it impacted tenants? Has this spurred any tenants to take their own measures?
Our customers are thrilled with Heller Industrial Parks' green initiatives; not only are they saving substantial money, in many cases we're helping them meet both their own corporate, as well as their customer's own green initiatives.
Are there any other green measures that have been taken by the park as a whole, or any future plans for further greening?
This year, Heller Industrial Parks is also planning to roll out a program where our customers will be able to get free solar power for their own homes.
Increasing our customers' operating efficiencies in our buildings has long been a Heller trademark. We are always looking for ways to better serve our customers.
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