According to the Property Council of Australia, the beginning of 2017 saw the continuation of double-digit vacancy rates for the office market in Brisbane, Perth, Canberra, Darwin and Adelaide.
And whilst Sydney, Melbourne and Hobart office spaces enjoy lower vacancy rates, any building owner or property manager's goal should be to stay on top of keeping their office spaces competitive in the market - and having a good NABERS Energy rating is one way to do just that.
In this post, we'll look at three reasons why your commercial office building's NABERS Energy rating may matter more than you think:
While NABERS Energy ratings are a voluntary affair, the Commercial Building Disclosure program does mandate NABERS Energy assessment and disclosure for some commercial office buildings.
Larger commercial office spaces must typically have their energy efficiency information - which includes a NABERS Energy rating - disclosed to prospective tenants or buyers.
Since 2011, the Commercial Building Disclosure (CBD) program has mandated the disclosure of energy efficiency information when commercial office space greater than 2000 square meters is offered for either sale or lease, and this has largely driven the use of NABERS Energy ratings in Australia.
Energy efficiency details of the building are disclosed in the form of a "Building Energy Efficiency Certificate" or BEEC, which includes a NABERS Energy rating.
The CBD program has introduced a change to the mandatory disclosure threshold (from 2000m ² down to 1000m²) which came in to affect from 1st July 2017.
Many commercial office spaces between 1000 - 2000 square meters may not have been previously rated, so we can expect to see an increasing number of NABERS Energy assessments being performed on these spaces.
NABERS is a benchmarking tool, so it's only natural that the higher your NABERS Energy rating is, the better your building is percieved by the public.
Not only does a higher NABERS Energy rating indicate a more sustainable building, it evokes common associations with:
In many instances, the first impression of a high NABERS score is enough to evoke positive associations which can extend beyond the bottom line.
When it comes to a benchmark score rating, the higher your score is, the better.
As many of the larger commercial office spaces now need to disclose their NABERS Energy ratings, it's very easy for the end-user to compare the energy efficiency of different office spaces simply by comparing their NABERS ratings.
A key way to ensure your building comes out on top is to consider your NABERS score in comparison to those of surrounding buildings or spaces.
In some cases, it may be worth considering NABERS improvement projects. These have a strong focus on achieving a higher NABERS rating, which may help give that push to beat the competition.
While the benefits of sustainable buildings are now commonly known, a more pressing issue that most investors and building owners are more concerned with is justifying the costs associated with implementing sustainable choices.
The good news is that the 2011 report did show a quantifiable 'green premium' when it comes to NABERS Energy ratings.
Investors are willing to pay a premium for sustainable buildings, resulting in an elevated price for green buildings.
Key findings of the 'Building Better Returns' report showed that:
" A green premium in value for office buildings was evident for the NABERS energy rating. This saw the 5 star NABERS energy rating delivering a 9% green premium in value and the 3-4.5 star NABERS energy ratings delivering a 2-3% green premium in value. "
With strong evidence to show that higher NABERS Energy scores pay off, it's yet another reason to pay good attention to achieving the highest NABERS Energy rating possible for your commercial office building.