Water Corporation. Water Efficiency Benchmarks 2017 Retail Buildings Western Australia. 9 March 2018

Transcription

1 Water Corporation Water Efficiency Benchmarks 2017 Retail Buildings Western Australia 9 March BRISBANE MELBOURNE PERTH SYDNEY

2 Water Corporation Water Efficiency Benchmarks 2017 Retail Buildings Western Australia HFM ASSET MANAGEMENT HFM Asset Management is a building efficiency company. We are based in Perth, Sydney, Brisbane, Melbourne and Ballina. Our mission to transform properties into efficient, economic and compliant assets for our clients. Web Telephone info@hfmassets.com.au VERSION CONTROL VER. NO. AUTHOR REVIEWER COMMENT DATE 0.1 Peter Rice Draft 1 02/02/ Peter Rice Draft 2 27/02/ Peter Rice Tayla Knox Final 09/03/2018 This document is prepared for Water Corporation by HFM Asset Management Pty Ltd, is based on assumptions as identified through the text and upon information and data supplied by others. HFM Asset Management Pty Ltd is not in a position to, and does not verify the accuracy of, or adopt as its own, the information and data provided by others. Copyright 2018 in all of this material vests absolutely in HFM Asset Management Pty Ltd ( the Copyright Owner ). No part of this document or any of the documents that relate to it may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electrical, mechanical, photocopying, or otherwise, without the prior written consent of the Copyright Owner. HFM ASSET MANAGEMENT PTY LTD 2018 i

3 Water Corporation Water Efficiency Benchmarks 2017 Retail Buildings Western Australia CONTENTS 1. INTRODUCTION 1 2. PROJECT SCOPE PROJECT OBJECTIVES 2 3. DATA SOURCE & SIZE DATA SOURCE ROADMAP SUMMARY OF SAMPLE SIZE 4 4. METHODOLOGY MECHANICAL AIR-CONDITIONING PLANT WEATHER 6 5. OUTCOMES WATER USE TRENDS TRENDS BETWEEN METRO AND REGIONAL CENTRES WEATHER RELATED TRENDS 9 6. WATER CONSUMPTION PERFORMANCE CATEGORIES RECOMMENDATIONS AND FUTURE BENCHMARKS 12 APPENDIX 13 PROPERTY COUNCIL S SHOPPING CENTRE CLASSIFICATIONS 13 HFM ASSET MANAGEMENT PTY LTD 2018 ii

4 FIGURES Figure 1. Data Source Roadmap Figure Water intensity index (kl/m 2 /year) for buildings greater than 5,000 m Figure 3. Water Intensity Index (kl/m 2 ) for each retail building classification, for the last eight years Figure 4. Water Intensity Index (kl/m 2 ) comparison between Metro and Regional Centres Figure 5. Water Intensity Index (kl/m 2 ) comparison with average maximum temperature for the summer months. 10 Figure 6. Water Intensity Index (kl/m 2 ) comparison with average maximum temperature for the summer months. 10 Figure 7. Performance Categories Figure 8. Determination of water consumption benchmarks for the end use water categories TABLES Table 1. Retail Building Classifications. 3 Table 2. Summary of Sample Size. 4 Table 3. Total Data Set - average water consumption. 7 Table 4. Grange Region - Average water consumption. 9 Table 5. Proposed performance categories and Waterwise program award structure BRISBANE MELBOURNE PERTH SYDNEY

5 1. INTRODUCTION By request of the Water Corporation, HFM Asset Management participated in a water efficiency benchmarking exercise for the retail property sector in Western Australia. The project utilises data derived from the 2010 to 2017 calendar years inclusive. It is designed to provide water efficiency benchmark guidance to the owners and operators of retail property within Western Australia and establish a basis to target identified buildings with water efficiency programs. The outcomes may form the basis of a future Waterwise Shopping Centre Program. Contributions on this project in relation to data, time and costs were born by the project participants as outlined below: Project Participants: Water Corporation Provision of annual water consumption data, project co-ordination and the project brief. Property Council of Australia (WA Branch) Provision of retail property Gross Lettable Area (GLA) data greater than 5000 m 2, participation in stakeholder consultation and the industry. HFM Asset Management - Data processing, collation, interpretation, analysis, criteria development, outcome presentation and report writing. Stakeholder Workshop Participants: Water Corporation Property Council of Australia (PCA) HFM Asset Management Kel Medbury Anna Lichovidova Lino Iacomella Peter Rice Bevan Tyler Senior Advisor Water Efficiency Programs Water Efficiency Programs Lead Executive Director (WA) Engineering Consultant General Manager HFM ASSET MANAGEMENT PTY LTD

6 2. PROJECT SCOPE The project scope was to develop benchmarking criteria for retail buildings based on data provided by the Water Corporation and PCA, in consultation with HFM s experience operating in this space. Categories of benchmarks were developed for each retail classification. The industry recognised indicator for retail buildings is water consumption per square meter of gross lettable area (GLA) per annum (kl/m 2 /annum). The target group of the study includes sites with a GLA larger than 5,000 m 2. A range of benchmarks have been produced within each category that will determine the level of Waterwise recognition. These water consumption performance KPI s will be based on the benchmark outcomes of the previous calendar year and hence will change annually. It is envisaged that as the program evolves, and with participation, an incremental improvement in retail building performance will occur and prompt improvement for consumption baselines and benchmarks PROJECT OBJECTIVES The project objectives include: Identify buildings which are most likely to benefit from targeted water efficiency initiatives. Develop industry benchmarks which will form the basis of a potential Waterwise program. To motivate and educate sites which have high water consumption in order to improve water efficiency to a minimum standard. Reward and recognise those that are leading the industry. Drive innovation and continued improvement towards best practice. Retail buildings that meet the minimum set of criteria may be endorsed and receive access to the Waterwise branding to promote their endorsement. The Waterwise program will be limited to retail buildings that have a Gross Lettable Area (GLA) of greater than 5000 m 2. HFM ASSET MANAGEMENT PTY LTD

7 3. DATA SOURCE & SIZE HFM was provided with total annual water consumption data for calendar years 2010 to 2017 inclusive from the Water Corporation and was provided with PCA WA gross lettable area (GLA) data for retail buildings within the Perth metropolitan and Western Australian regional areas. According to the Property Council s shopping centre directory, there are six core classifications and four specialist classifications for shopping centres (Table 1). A full description of each retail classification is provided in the Appendix. According to the data set, there are no buildings with a gross lettable area retail exceeding 85,000 m 2 which is the key classification for super regional centres. Similarly, of the PCA specialist classifications, only bulky goods centres were included in the benchmark exercise due to the unavailability of matched data for the other classifications. Table 1. Retail Building Classifications. RETAIL BUILDING CLASSIFICATIONS CORE CLASSIFICATIONS TYPICAL GROSS LETTABLE AREA RETAIL (GLAR) RANGE City Centre > 1,000 m 2 Yes Neighbourhood Centre < 10,000 m 2 Yes Sub-Regional Centre 10,000 < x < 30,000 m 2 Yes Regional Centre 30,000 < x < 50,000 m 2 Yes Major Regional Centre 50,000 < x < 80,000 m 2 Yes Super Regional Centre < 85,000 m 2 No SPECIALIST CLASSIFICATIONS Bulky Goods Centre > 1,000 m 2 Yes Themed Centre Non-specific No Market > 5,000 m 2 No Outlet Centre Non-specific No INCLUDED IN BENCHMARK EXERCISE The annual water consumption and GLA data was processed, collated and categorised in accordance with a data criterion developed specifically for the context of the project. HFM ASSET MANAGEMENT PTY LTD

8 3.1. DATA SOURCE ROADMAP Water Data Water Corporation - annual consumption data kl Area Data Property Council GLA data for buildings > 5,000 m 2 m 2 Merged Data Merged data (120 buildings) kl/m 2 Filtered Data Removal of outliers. Filtered data (110 buildings) Classific ation Retail building classification Area and Region classification Figure 1. Data Source Roadmap SUMMARY OF SAMPLE SIZE Table 2. Summary of Sample Size. RETAIL BUILDING CLASS m m 2 > m 2 TOTAL City Centre Neighbourhood Centre Sub-Regional Centre Regional Centre 7 7 Major Regional Centre 8 8 Super Regional Centre Bulky Goods Centre All Buildings HFM ASSET MANAGEMENT PTY LTD

9 4. METHODOLOGY The present benchmarking exercise was undertaken as an extension of a similar project undertaken in The intent is to develop a set of benchmarks which accurately account for water consumption in retail buildings in the Western Australian metropolitan and regional areas. The target group of retail buildings are those with a Gross Lettable Area (GLA) greater than 5000 m 2, and with available water consumption data. Retail buildings and complex s often exhibit a mixture of retail, commercial office, and other functional uses. Gross lettable area retail (GLAR) is used to calculate tenancy areas, including supermarkets and speciality retail shops. Gross lettable area (GLA) is used to calculate tenancy areas which include warehouses, showrooms and office areas incorporated into a retail complex. The GLA is always equal to or greater than the GLAR. This benchmarking criteria has been developed using GLA as the denominator and includes all lettable space in the building; not just retail. This was considered the best approach in order to determine the water intensity index consistently across the various shopping centres. PCA GLA (m 2 ) data was available for both the 2014 and 2017 years. Water consumption (kl) data was provided for the years 2010 to 2017 inclusive. Water readings changed from a frequency of 6-monthly to 2-monthly in 2013 and therefore from this point onwards there has been an improvement in data validity. The water intensity index (kl/m 2 ) for the years is based on 2014 GLA data. The water intensity index (kl/m 2 ) for the years is based on 2017 GLA data. In the 2015 benchmarking exercise, sites which consumed +/- 50% of the average were excluded, pending further investigation. The approach in the present exercise was to more closely assess and consider each site for exclusion from the database. Following calculation of the annual water intensities, every property was considered for inclusion into the database. Excessively high and low consumers were excluded based on a range of factors, including nonvalidated data as well as large non-retail water end uses. We believe that this approach more effectively assesses the current trends in the retail building stock and also identifies the buildings most applicable for strategic targeting of water efficiency initiatives. The above methodology produced a final filtered data set of 110 retail buildings upon which analysis was undertaken. As this process continues to evolve over the coming years, the filter and data quality will improve and as well as the related accuracy of associated benchmarks MECHANICAL AIR-CONDITIONING PLANT Within the present benchmark analysis, it was not feasible to consider the mechanism of air conditioning as a benchmarking variable. This is due to the fact that retail buildings often consist of a mixture of air-conditioning systems and types. Historically when developers have planned the development or expansion strategy of a retail establishment, water efficiency is not a key driver, but rather a by-product of the building services deployed to meet the properties requirements. This disparity exists in retail centres across all categories. As a result, retail buildings will often incorporate a hybrid arrangement of air cooled and water-cooled solutions deployed centrally or by individual tenants. The variance in mechanical plant and equipment deployed within a centre may consist of a combination of the following system types: Water cooled central plant Cooling towers Evaporative condensers Air cooled supplemented with adiabatic cooling. Air cooled central plant Packaged refrigerated air-cooled systems Split type refrigerated air-cooled systems HFM ASSET MANAGEMENT PTY LTD

10 Evaporative air-conditioner Therefore, due to the variance of systems deployed in properties within the dataset, for the purpose of this study it is not practically feasible to separate water-cooled centres from air cooled centres (as successfully undertaken within the commercial office Waterwise benchmarking analysis project), because most centres include a combination of both. If in the future, steps are taken to facilitate detailed documentation of the extent of separation of end use services that utilise water within retail centres; this information will become more readily available. This will be achieved via the deployment of improved sub-metering practices to significant end uses WEATHER Weather is also a variable which affects water consumption at retail centres in Western Australia. Shopping centres with water-cooled plant are more likely to use more water to aid heat rejection during hot times of the year. Additionally, landscape irrigation consumption is more likely to be higher in periods of hot weather. During this exercise, the correlation between water consumption and changes in the weather was tested by comparing: Average annual water consumption (kl/m 2 ) vs. Average maximum summer temperature (⁰C), Average annual water consumption (kl/m 2 ) vs. Sum of Cooling Degree Days (CDDs) for each annual period. Cooling Degree Days (CDDs) indicate the level of comfort and are based on the average daily temperature. The average daily temperature is calculated as follows: [maximum daily temperature + minimum daily temperature] / 2. If the average daily temperature is above comfort levels, cooling is required. CDDs are determined by the difference between the average daily temperature and the BASE (comfort level) temperature. The BASE values used are 18 and 24⁰C for cooling. Therefore, the CDD is the number of degrees that that the average daily temperature is above 24⁰C. It is hypothesised that there will be a correlation between water consumption and summer temperature. HFM ASSET MANAGEMENT PTY LTD

11 5. OUTCOMES The project has revealed water consumption averages and trends across the past eight years for retail buildings within Western Australia. Subsequently, industry benchmarks may be developed as the basis of Waterwise initiatives specifically tailored to this sector. Figure 2 presents the water intensity index (kl/m 2 ) for the 2017 calendar year. Each building is ranked from most efficient to least efficient, with the average water intensity index calculated as kl/m 2 for this period. The distribution of data points in each year follows the same pattern as below. The data points are distributed in a common probability distribution (normal distribution) around the average (mean) water intensity index. Water Intensity (kl/m2) Figure Water intensity index (kl/m 2 /year) for buildings greater than 5,000 m WATER USE TRENDS The water consumption trend over the past eight years is shown in Table 3 for each retail building classification. Table 3. Total Data Set - average water consumption. RETAIL CENTRE CLASS SAMPLE City Centre Neighbourhood Sub Regional Regional Major Regional Bulky Goods All Buildings The trend is a reduction in the average water consumption for retail buildings over the last eight years, illustrated in Figure 3 below. Observations from the data include: Neighbourhood Centre s have the largest sample size (54 buildings) and have demonstrated a significant average water intensity index reduction of kl/m 2 per year. The larger Sub-regional centres (37) have only reduced marginally in comparison. The small sample size of City Centre (2) and Bulky Goods (2) means the average water intensity index is easily impacted by individual site performance. HFM ASSET MANAGEMENT PTY LTD

12 Regional Centres are more water efficient compared to Major Regional Centre s and both retail classes have demonstrated inconsistent consumption over the past eight years. Overall, the average water intensity index has decreased for the WA retail building stock; reducing by 0.16 kl/m 2 (-13.1%) over the past eight years. This corresponds to a cumulative water volume decrease of 1.29 GL. Water Intensity (kl/m 2 ) Bulky Goods City Centre Neighbourhood Major Regional All Buildings Sub Regional Regional Figure 3. Water Intensity Index (kl/m 2 ) for each retail building classification, for the last eight years. The outcomes identify that water usage patterns are changing within the Western Australian retail building sector. It is clear that trends exist for each classification and that these are influenced by factors such as plant type, management intensity, irrigation requirements, and maintenance practices which likely vary with respect to building size and function. This prompts the requirement to better understand why these differences exist and what bearing they have on building water efficiency TRENDS BETWEEN METRO AND REGIONAL CENTRES Apart from centre types, variances between metropolitan and regional centres were also examined. The data analysis is presented in Table 4 and Figure 4. Observations from the data are summarised below: Out of the 110 retail properties, 94 were located in the Perth region. There is a strong correlation between the water intensity index and climate. Properties located in the North West have the highest water intensity index. Properties located in the South West and Great Southern have the lowest water intensity index. The water intensity index for the 5 North West properties has decreased over the past eight years. HFM ASSET MANAGEMENT PTY LTD

13 Table 4. Grange Region - Average water consumption. GRANGE REGION SAMPLE SIZE Goldfields Great Southern Mid West North West Perth South West Water Intensity (kl/m 2 ) Figure 4. Water Intensity Index (kl/m 2 ) comparison between Metro and Regional Centres WEATHER RELATED TRENDS There is a relationship between weather and water consumption. The figures below demonstrate the trends observed over the past seven years with respect to the average summer maximum temperature (Figure 5) and annual cooling degree days (Figure 6) respectively. There is a positive correlation between the water intensity index and average summer maximum temperature, with a correlation coefficient of The relationship between water intensity index and annual cooling degree days shows a correlation coefficient of These values indicate a degree of dependence between weather and water consumption with more water consumed during warmer years. Although there is a correlation between these variables, a causal relationship cannot be inferred (i.e. there are other variables affecting the water intensity index apart from weather). The key water end uses that are expected to increase with respect to higher temperature and CDD include; Landscape irrigation, Water-cooled mechanical plant, and; Goldfields Great Southern Mid West North West South West Perth Region HFM ASSET MANAGEMENT PTY LTD

14 Water features. It is an acceptable conclusion to draw that ambient weather conditions impact water consumption to a certain extent. Other variables include occupancy and patronage, as well as water efficiency improvements and awareness in retail centres Temperature ( C) Water Intensity (kl/m 2 ) Average Maximum Temperature (Summer) Average Water Consumption (kl / m2) Figure 5. Water Intensity Index (kl/m 2 ) comparison with average maximum temperature for the summer months. Annual Cooling Degree Days Water Intensity (kl/m2) Annual Cooling Degree Days Average Water Consumption (kl / m2) Figure 6. Water Intensity Index (kl/m 2 ) comparison with average maximum temperature for the summer months. HFM ASSET MANAGEMENT PTY LTD

15 6. WATER CONSUMPTION PERFORMANCE CATEGORIES Water use baselines and performance categories have been developed for the potential development of a Shopping Centres Waterwise Award Program. Each property was sorted into the performance categories as defined in Table 5, and as established in the 2015 version of this report. There are seven performance categories, of which the upper five correspond to a Waterwise award category. Table 5. Proposed performance categories and Waterwise program award structure. PERFORMANCE CATEGORY WATER INTENSITY INDEX Poor >1.56 WATERWISE AWARD STRUCTURE SAMPLE SIZE (2017) Below Average Participant Certificate 17 Baseline Average Bronze 28 Above Average Silver 18 Best Practice < 0.56 Gold 15 Top Performer Best annual verified outcome Platinum Water Intensity Index (kl/m 2 ) Figure 7. Performance Categories. It is identified that these performance categories should form the initial basis of the Waterwise rewards program for retail buildings in Western Australia. Shopping centres are changing their water use over time, as evident by the decreasing baseline across the past eight years. Following implementation, the performance category may be revised to reflect these changes and encourage best practice performance. HFM ASSET MANAGEMENT PTY LTD

16 7. RECOMMENDATIONS AND FUTURE BENCHMARKS The utilisation of the benchmark database to target identified buildings with water efficiency initiatives is recommended. This is likely to assist in improved performance for the worst performing buildings and as a result improve the overall performance of the stock. Next steps may include desktop analysis of data logger information or site-based water audits for targeted buildings. The key to driving water efficiency in retail centres, or any facility for that manner, is in delivering a better understanding of the end uses and usage patterns within the facility. Ultimately, the best practice management of water consumption should include monitoring of key end uses. Hence it is our recommendation that the Waterwise retail program has a future target to develop detailed performance criteria, utilising predetermined sub-metering for subsets of water end uses. It is envisaged this methodology could drive water efficiency practices in retail buildings and deliver step change water usage reductions across the sector. A sample of what this may look like is outlined below: Figure 8. Determination of water consumption benchmarks for the end use water categories. HFM ASSET MANAGEMENT PTY LTD

17 APPENDIX PROPERTY COUNCIL S SHOPPING CENTRE CLASSIFICATIONS a. Core Classifications i. City Centre Retail premises within an arcade or mall development owned by one company, firm or person and promoted as an entity within a major Central Business District. Total GLAR exceeds 1,000 square metres. ii. Super Regional Centre A major shopping centre typically incorporating two full line department stores, one or more full line discount department stores, two supermarkets and around 250 or more specialty shops. Total GLAR exceeds 85,000 square metres. iii. Major Regional Centre A major shopping centre typically incorporating at least one full line department store, one or more full line discount department stores, one or more supermarkets and around 150 specialty shops. Total GLAR generally ranges between 50,000 and 85,000 square metres. iv. Regional Centre A shopping centre typically incorporating one full line department store, a full line discount department store, one or more supermarkets and around 100 or more specialty shops. Total GLAR typically ranges between 30,000 and 50,000 square metres. In some instances, all other characteristics being equal, a centre with two full discount department stores, without a department store, can serve as a regional centre. v. Sub-Regional Centre A medium-sized shopping centre typically incorporating at least one full line discount department store, a major supermarket and approximately 40 or more specialty shops. Total GLAR will typically range between 10,000 and 30,000 square metres. vi. Neighbourhood Centre A local shopping centre comprising a supermarket and approximately 35 specialty shops. Total GLAR will typically be less than 10,000 square metres. b. Specialist Classifications i. Bulky Goods Centre A medium to large sized shopping centre dominated by bulky goods retailers (furniture, white goods and other homewares) occupying large areas to display merchandise. Typically contain a small number of specialty shops. Total GLAR will typically be greater than 5,000 square metres. ii. Themed Centre A speciality shopping centre, located primarily in resort areas to cater for specialist tourist needs, which does not normally include a supermarket. HFM ASSET MANAGEMENT PTY LTD

18 iii. Market A covered centre of at least 5,000 square meters dominated by food retailing with at least 50 stalls or outlets. It operates on a permanent or irregular basis. iv. Outlet Centres A medium to large sized shopping centre which does not normally include a department store, discount department store, or supermarket. HFM ASSET MANAGEMENT PTY LTD

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