Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Economy

How REI Built a Better Warehouse

The outdoorsy retailer’s new facility in Lebanon, Tennessee features skylights, solar panels, and some quirky design choices.

An REI warehouse.
Heatmap Illustration/Al. Neyer, Getty Images

Almost by definition, warehouses are boring — spaces of pure industry and function with no aesthetic value.

Boring, though, is not very efficient. The Department of Energy keeps national statistics on warehouses (instead of the more obvious Department of Commerce), largely because it’s the purview of the U.S. Energy Information Administration to keep track of the energy consumption of buildings, and warehouses consume a lot. The transportation sector makes up about 8% of global greenhouse gas emissions, a number that jumps to 11% when you factor in warehousing-related activities. There is an estimated 4.7 billion square feet of warehouse space in the country already — enough to cover Maine’s Acadia National Park more than twice over — and it’s growing rapidly.

Almost all the $1.1 trillion of U.S. e-commerce sales filters through warehouses at some point in the journey from clicking “purchase” on your screen to a package arriving at your front door. The trucks coming and going with goods from distribution centers spew nitrogen dioxide, which is linked to asthma and is 20% more prevalent on average in the air near industrial parks. Concrete monstrosities that they are, warehouses can even mess with local stormwater drainage due to the acres of ground cover, roads, and loading docks they require. And about a third of the ones in the United States are more than half a century old, meaning they’re not exactly at the state of the art of energy efficiency.

Until very recently, this was mostly an accepted fact. Customers never see the inside of warehouses, meaning there isn’t a lot of external pressure for companies to make them nicer. (Being out of sight and out of mind has also historically allowed them to become sites of rampant exploitation and safety violations.) As Andrew Dempsey, director of climate at outdoor recreation retailer REI Co-op, put it to me, “Folks are not thinking about their warehouses and distribution centers as opportunities for leadership.”

Late last year, REI opened the 10th warehouse in the country to earn a LEED v4 Platinum certification, a designation the nonprofit U.S. Green Building Council reserves for projects that go above and beyond sustainability considerations. (Levi Strauss & Co. has one in Nevada, and the National Institute of Health has another in North Carolina, among others.) Located in Lebanon, Tennessee, near important transportation corridors for the business, the new REI warehouse still looks, at least from the outside, a little like the boring designs of the past: At some 400,000 square feet, it’s certainly blocky and large.

“With most of these types of projects, there is always going to be a tension between some of the impact goals you’re looking to achieve and some of the business objectives,” Dempsey added — that is to say, a warehouse still needs to house wares. But, he added, “Under certain constraints, you can get very creative.”

According to the DOE, lighting is one of the biggest energy-sucks in a warehouse. For the Lebanon project, REI partnered with Al. Neyer, a commercial real estate developer with experience designing and constructing LEED-certified buildings, and zeroed in on “design decisions that aren’t overly complex or necessarily bleeding edge,” Dempsey explained. For example, to light the space, the team simply installed 90 skylights, which not only allows in more sun (and thus, reduces the need for lightbulbs), it also helps workers keep an “understanding of the rhythms of the day.” Sensors that turn off lights and conveyor belts when not in use allow the warehouse to run on 30% less energy than code requires.

Solar panels are another common way for warehouses to go greener, and the Lebanon facility has them, too. However, REI also wanted to bring more zero-emission energy to the surrounding community, so it teamed up with Clearloop, a local start-up, to build a supplementary solar project nearby. In addition to keeping the warehouse at its 100% renewable energy goal, the solar facility will also help power several hundred surrounding homes.

Perhaps the biggest challenge REI took on is making the construction process — another traditionally high-emissions part of a building’s lifecycle — zero-waste, which occasionally led to some delightfully woo-woo material decisions. Trees cut down in preparation for construction at the site were recycled for interior design accents like stair barristers. An old barn on the property was likewise deconstructed and its wood repurposed for the warehouse’s atrium space. (The lobby and lounge have the same Restoration Hardware-chic style as many REI retail spaces.)

Many other materials came from “right outside the windows of the building,” Dempsey told me, “which I think is really important to give the folks working there a connection to the history of that land.” Even interior wayfinding elements were made more whimsical: Though there is no way to avoid pouring vast emissions-intensive concrete floors in a warehouse, a polished path on their surface mimics the nearby Cumberland River, and is meant to further blend the indoors with the outdoors.

Stefanie Young, the vice president of technical solutions at the U.S. Green Building Council, who has worked on a number of warehouse projects, told me environmental sustainability is not necessarily the only motivator for companies pursuing LEED certificates. “It’s also about the health and wellness for the occupants: ventilation, access to amenities, the ability to travel to and from the site,” she said, adding, “It might be minimal, but every person that comes into that building is important.”

And while the REI facility is still an oddball in the warehouse space, the advantages of a climate-friendly design are attracting interest from more and more developers. The attention is not necessarily all altruistic: “Clearly, the more efficient the facility is, the less their utility bills will be,” Young pointed out. Owners and developers are also looking for places to meet their ESG or carbon reduction goals, and warehouse upgrades help boost those bona fides. (REI, for example, aims to halve its greenhouse gas emissions by 2030.)

Warehouses will probably never actually be sexy. But it also doesn’t take groundbreaking innovations to make them a little more pleasant — at the end of the day, we’re still just talking about adding some skylights, drought-resistant landscaping, and a few electric forklifts to make them better for both the planet and workers. But these little things matter: “Customers won’t come into this space, but several hundred of our employees will,” Dempsey said. “And that alone merits us to create the best space possible.”

Green

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Climate

AM Briefing: House Cues Up Thursday Passage of GOP Megabill

On a late-night House vote, Tesla’s slump, and carbon credits

House Cues Up Potential Thursday Passage of GOP Megabill
Heatmap Illustration/Getty Images

Current conditions: Tropical storm Chantal has a 40% chance of developing this weekend and may threaten Florida, Georgia, and the CarolinasFrench far-right leader Marine Le Pen is campaigning on a “grand plan for air conditioning” amid the ongoing record-breaking heatwave in EuropeGreat fireworks-watching weather is in store tomorrow for much of the East and West Coasts.

THE TOP FIVE

1. House cues up early morning passage of Trump’s ‘big, beautiful bill’

The House moved closer to a final vote on President Trump’s “big, beautiful bill” after passing a key procedural vote around 3 a.m. ET on Thursday morning. “We have the votes,” House Speaker Mike Johnson told reporters after the rule vote, adding, “We’re still going to meet” Trump’s self-imposed July 4 deadline to pass the megabill. A floor vote on the legislation is expected as soon as Thursday morning.

Keep reading...Show less
Yellow
Sparks

Trump Will ‘Deal’ with Wind and Solar Tax Credits in Megabill, GOP Congressman Says

“We had enough assurance that the president was going to deal with them.”

Donald Trump.
Heatmap Illustration/Getty Images

A member of the House Freedom Caucus said Wednesday that he voted to advance President Trump’s “big, beautiful bill” after receiving assurances that Trump would “deal” with the Inflation Reduction Act’s clean energy tax credits – raising the specter that Trump could try to go further than the megabill to stop usage of the credits.

Representative Ralph Norman, a Republican of North Carolina, said that while IRA tax credits were once a sticking point for him, after meeting with Trump “we had enough assurance that the president was going to deal with them in his own way,” he told Eric Garcia, the Washington bureau chief of The Independent. Norman specifically cited tax credits for wind and solar energy projects, which the Senate version would phase out more slowly than House Republicans had wanted.

Keep reading...Show less
Politics

Trump Promised Deregulation. His New Law Would Regulate Energy to Death.

The foreign entities of concern rules in the One Big Beautiful Bill would place gigantic new burdens on developers.

Power lines and Trump's tie.
Heatmap Illustration/Getty Images

Trump campaigned on cutting red tape for energy development. At the start of his second term, he signed an executive order titled, “Unleashing Prosperity Through Deregulation,” promising to kill 10 regulations for each new one he enacted.

The order deems federal regulations an “ever-expanding morass” that “imposes massive costs on the lives of millions of Americans, creates a substantial restraint on our economic growth and ability to build and innovate, and hampers our global competitiveness.” It goes on to say that these regulations “are often difficult for the average person or business to understand,” that they are so complicated that they ultimately increase the cost of compliance, as well as the risks of non-compliance.

Keep reading...Show less
Blue