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Increasingly the Norm

Budapest One Business Park by Futureal.

SUSTAINABILITY ACCREDITATION INCREASINGLY THE NORM

Sustainability accreditation from an independent, third-party sustainability organization such as the U.K.-based BREEAM (Building Research Establishment Environmental Assessment Methodology), the American LEED (Leadership in Energy & Environmental Design) or, increasingly, WELL, is now the norm for development at the top end of the Hungarian office markets and increasingly at the higher strata of other sectors such as logistics.

By Gary J. Morrell

Regional and established Hungarian developers such as Skanska, Atenor, GTC, HB Reavis, CPI, Prologis, Wing, Horizon Development and Futureal all have common sustainable development policies across Hungary and Central and Western Europe.

This growing use of green and sustainability accreditation systems by developers and building owners is in response to tenant demand and the need to conform to environmental regulations, and can be seen as market forces operating in the interest of, and the safeguarding of the environment.

Developers are, at the same time, constructing on better quality and higher specified buildings that have a lower negative impact on the natural environment.

“Trends have become more transparent, taking into account the effects of the building industry both on people and the environment and reacting to these effects with the help of innovative technologies and architectural solutions,” comments Dr. András Reith, director of sustainability at the architectural studio of Paulinyi-Reith & Partners.

“Green architectural solutions will gain a stronger emphasis in 2019, and this is also strengthened by new regulations and client needs,” Reith adds.

Developers have become increasingly concerned with interiors and the perceived wellbeing of staff in office centers, as evidenced by the fact that more are seeking WELL accreditation in addition to BREEAM and LEED sustainability accreditation.

Skanska, for example, is doing just this with Nordic Light Trio, the 14,000 sqm third-phase of the Nordic Light office center, which is being designed to meet the WELL Building Standard.

“Employee wellbeing was at the forefront when designing Nordic Light Trio and this will be our first office project in Hungary to receive WELL certification,” confirms Marcin Łapiński, managing director of Skanska Hungary.

Elsewhere, the same developer has been awarded WELL Core & Shell “Gold” Certification for its Visionary office development in Prague, the first such certified project in the CEE region. The project achieved LEED “Platinum” certification with 95 points shortly after its completion.

RIGOROUS RESEARCH “Created through seven years of rigorous research and development working with leading physicians, scientists, and industry professionals, WELL is a performance-based certification system that marries the best practices in design and construction with evidence-based scientific research,” explains Alexandra Tomášková, managing director of Skanska in Czech Republic.

“Trends have become more transparent, taking into account the effects of the building industry both on people and the environment and reacting to these effects with the help of innovative technologies and architectural solutions.”

“Visionary earned the distinction based on seven categories of building performance – Air, Water, Light, Nourishment, Fitness, Comfort and Mind, plus Innovations – and achieved a Gold level rating,” Tomášková adds.

The 21,000 sqm White House by GTC became the second Budapest office development after Green House (developed by Skanska), to be awarded LEED “Platinum” accreditation.

The complex is located in Váci út, adjacent to the metro, on the site of the 100-year-old former Schleck Elevator Factory and includes a refurbished area that provides a stand-alone loft with 2,000 sqm of office space.

GTC are regarded as contributing to the revival of the area as well as the former factory building with a complex that integrates old and new. For its part, the local District XIII authority has successfully overseen the development of a former industrial area into a thriving commercial center by attracting developers to the socalled Váci Corridor with its excellent public and road transport links.

“Built on the Váci Corridor, GTC White House has excellent public transportation opportunities within a short walking distance, complemented by a bicycle lane passing by the building,” says Norbert Szircsák, senior associate of Colliers Green Building Advisory Services. The certification process for the building was advised by Colliers’ advisory team.

“Plenty of bicycle racks, common area showers and changing rooms serve the needs of environmentally conscious employees as well as chargers for

GREEN BUILDING CERTIFICATIONS IN THE CEE REGION, APRIL 2019

BREEAM New Construction

BREEAM In-Use

BREEAM total

LEED DGNB Total

Hungary 43 56 99 53 4 Austria 8 38 46 29 57 Czech Republic 97 59 156 51 1 Slovakia 34 30 64 17 1 Slovenia 2 0 2 0 0 Croatia 0 3 3 3 0 Romania 62 86 148 39 3 156 132 208 82 2 6 190

Serbia 0 4 4 13 0 17

Sub total CEE 246 276 522 205 66 793

the growing number of electric car owners,” said Szircsák adds.

The Futureal Group has been awarded WELL Building precertification for its three current Budapest office projects: the first phase of the Budapest One Business Park; the initial phase of the Corvin Technology & Science Park; and the first phase of Advance Tower.

“Healthy building certification systems complement and in some cases overlap with green-building rating systems [such as LEED and BREEAM]. The dynamic growth of WELL certified projects in 2018 was remarkable,” comments Emese Kovács, energy adviser at MN6 Energy Agency, and a qualified WELL assessor.

BIG GROWTH “More than 12 million sqm of WELL project space has been registered, which is a 108% growth from 2017. In the CEE region, there are almost 50 registered or certified WELL projects; in Hungary there are nine projects on the way to becoming WELL certified,” Kovács details.

Nordic Light Trio.

She believes the impact of the holistic approach of WELL certification on interiors result in healthier spaces. Even in beautiful and very trendy offices, there are problems in terms of ergonomics, acoustics, thermal comfort or the amount of fresh air, she says.

“A WELL certified office has to offer a certain level of indoor air quality, the maintenance protocols must be measured and reported and the system is evidence based and controlled, so the operation must be taken more seriously,” Kovács points out.

“Through the biophilic design, nature can be part of interiors, and it improves air quality at the same time. Art pieces and colors are meaningful in order to relieve stress and healthy snacks and fitness opportunities can also be provided for employees.”

The MN6 Energy Agency she works for supports companies and tenants to “go WELL” by helping them create new interiors, whether in new or refurbished buildings in Hungary, mainly in Budapest.

“For this year, we expect five or six new certifications, most in WELL core-and-shell certified buildings as new tenant space. Tenants from the IT and financial sectors are showing an interest in the certification and how offices can be used to ensure a positive experience for both employees and partners. WELL encourages a more collaborative approach between tenant and landlord, it always results in a win-win situation,” Kovács insists.

With regard to how WELL accreditation complements the other third-party accreditation systems, Zsombor Barta, president of the Hungarian Green Building Council (HuGBC) sees it as a very good addition to BREEAM and LEED, and says its coexistence with the established schemes is, therefore, very beneficial.

“The WELL system is a holistic scheme for the interior spaces, focusing on the building users, and therefore a project should ideally have a green building certification plus the

interior spaces certification in order to fulfill the sustainability aspects and approaches,” he said.

With regard to the sustainability of various market sectors, Mátyás Gereben, country manager at CPI Hungary, sees the biggest effort being made in the office segment, where all aspects of development have gone through a sustainability check process, including building materials used, utility consumption, sustainability on maintenance, alternative energy sources and a decrease in the ecological footprint.

CATCHING UP But other sectors appear to be catching up, or at least attempting to do so. Major industrial park developers and operators are now seeking thirdparty sustainability accreditation such as BREEAM and LEED as tenants are looking to save on utility costs and developers increasingly need to comply with international environmental regulations.

Prologis, for example, is currently developing a 10,600 sqm speculative facility at Prologis Harbor Park and the complex will be submitted for BREEAM “Very Good” accreditation. According to Prologis, sustainable features of the development will include high grade insulated wall panels and roof systems that, together with high performance gas fired heaters, can cut heating costs by 30%.

Further, energy efficient LED lighting and large skylights reduce electricity costs by 40% compared to the latest lighting standard. Smart metering will also optimize water, gas and electricity consumption in the complex.

“At Prologis, sustainability is central to what we do. That is why we submit all of our new buildings for BREEAM accreditation. Our customers know that working with Prologis can help them run their operations efficiently and more sustainably,” says László

“Created through seven years of rigorous research and development working with leading physicians, scientists, and industry professionals, WELL is a performance-based certification system that marries the best practices in design and construction with evidence-based scientific research.”

Kemenes, senior vice president and country manager at Prologis Hungary.

The development of sustainable buildings is seen as having a significant impact on many other areas of the economy.

“It directly affects the energy and utilities sectors through reduced consumption, and the materials sector also has to accommodate to the different needs,” comments Edina Hornok, head of sustainability consultancy at the building services provider DVM group.

“The healthier building interiors and the initiatives for a healthy lifestyle in these buildings impacts the healthcare sector and the food industry. The different transportation habits of employees

effect the automotive industry, while the IT sector is involved through smart building solutions,” Hornok adds.

Barta, of HuGBC, says that many investors now have green building certification as part of their preselection procedure.

“Not only investors, but also tenants and customers require certifications more and more. This is helpful for the wider adaptation and implementation of green building certifications. Notably, the retail sector is adapting sustainability issues and some logistics and industrial companies are also using certifications. However, this is still not a common standard for the overall commercial real estate sector,” he concludes.

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