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Industrial tenants are increasingly prioritising carbon-conscious facilities; green-certified warehouses, renewable energy capabilities, and smart energy management systems are all becoming non-negotiable – and with over 1.3 million sqm of Australian warehouse space up for lease renewal before 20301 there are significant opportunities ahead for asset owners and investors with ESG-smart premises in their portfolios.
Supply chain decarbonisation is reshaping the industrial and logistics real estate sector, driven by growing regulatory, financial, and reputational pressures. More than 50% of Australia’s top industrial and logistics tenants have committed to net zero, with many targeting 2030 or earlier2 and those businesses with ambitious decarbonisation targets are seeking out assets that support their ESG goals, maintain efficiency and meet evolving consumer expectations and climate regulations.
And they’re also prepared to pay. According to CBRE, ESG-compliant industrial and logistics assets in Australia are seeing a 65% higher leasing rate compared to non-compliant properties when vacancy rates are not at record lows3.
Future-proofing portfolios is therefore critical to meeting tenant sustainability requirements and maximising long-term investor value. From improving energy efficiency through insulation, to LED lighting, installing solar panels, and transitioning to electric heating and cooling systems, smart building technologies enhance real-time energy optimisation, while sustainable construction materials and circular economy principles help reduce embodied carbon.
Without solar integration, landlords risk a ‘brown discount’ on rental values, reinforcing sustainability’s financial importance. Anecdotally, if you’re working with major international institutions, very few will consider an asset without solar infrastructure as a minimum. Notably, at Dexus’s super prime quality Horizon 3023 estate at Ravenhall in western Melbourne, we have delivered some of the largest rooftop solar installations in the country, including a unique solar installation for Elders in the shape of its company logo. Similar integrations with tenants like Electrolux are a powerful example of what collaboration and commitment to sustainability can deliver as global occupiers seek to achieve their net zero and efficiency goals.
Launched in 2024, Dexus has made a $25 million commitment to install battery storage in new warehouses, which helps optimise the benefits of solar. The integration of commercial-grade battery systems, paired with rooftop solar, enables occupiers to generate and store renewable energy, reducing reliance on external grids and lowering carbon emissions. This initiative is expected to eliminate more than 27,450 tonnes of carbon emissions annually—the equivalent of taking 6,500 petrol-powered cars off the road. For tenants running 24-hour operations, battery storage ensures a continuous supply of green energy, mitigating peak-hour costs and renewable instability. Forward-thinking programs like battery storage, which are expected to deliver annual tenant energy savings exceeding $4.6 million, demonstrate that decarbonisation is both an environmental responsibility and a financial advantage.
Located in Victoria and jointly owned by the Dexus Wholesale Property Fund (DWPF) and Dexus Australian Logistics Trust (DALT), Horizon 3023 reflects Dexus’s ongoing commitment to decarbonisation. The estate incorporates a range of sustainability features designed to reduce operational carbon emissions, including solar energy systems, battery storage, rainwater harvesting, and energy-efficient LED lighting.
Sustainability at Horizon 3023 extends beyond infrastructure. Dexus is working closely with tenants to embed environmentally responsible practices into day-to-day operations, including through leasing arrangements that support lower-carbon outcomes.
One of the newest tenants, global logistics provider Maersk, has set a target to reach net zero emissions by 2040. The facility developed for Maersk at Horizon 3023 supports this ambition, featuring a 396 kW solar array and a 200 kWh battery system to reduce reliance on grid energy. Additional features such as stormwater harvesting, waste minimisation strategies, and EV charging bays contribute to a lower-emissions footprint and align with Maersk’s broader decarbonisation goals.
The site’s proximity to Caroline Springs Railway Station also supports more sustainable commuting options for employees, while prominent ESG signage along the Western Freeway highlights Maersk’s leadership in sustainable logistics.
Mondiale VGL’s newly completed facility at ASCEND Industrial Estate, located within Jandakot Airport in Perth’s southern suburbs and owned by Dexus Jandakot Airport Fund (DJAF), has been purpose-built to support the company’s operational expansion while advancing its supply chain decarbonisation goals.
As development manager, Dexus played a central role in embedding sustainability into the design and construction of the facility. A standout feature is the 10,700 sqm container-rated hardstand, which uses pre- and post-tensioned slab construction technology to achieve a 35% reduction in embodied carbon. The site also includes a 99 kW solar array and a 100 kWh battery system, enabling Mondiale VGL to generate and store renewable energy on-site – reducing operational emissions and reliance on grid power.
These measures offer tangible benefits for freight and logistics operations. Lower embodied carbon supports compliance with evolving environmental standards and meets growing customer expectations for sustainable supply chains. The integration of solar and battery systems not only reduces energy costs but also improves resilience against energy market volatility, contributing to long-term operational efficiency.
The facility’s 5,566 sqm warehouse has been optimised for serviceability, helping Mondiale VGL streamline logistics while maintaining its commitment to sustainability.
As industrial real estate evolves under the pressures of climate regulation, tenant expectations, and energy dynamics, decarbonisation has become a present-day priority. Developments like Horizon 3023 and ASCEND Industrial Estate show how sustainability-led design can deliver both environmental and commercial value. For asset owners and investors, integrating renewable energy, low-carbon construction, and smart operational strategies helps meet ESG benchmarks while supporting long-term portfolio resilience.
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