Improving energy efficiency in our large commercial offices saves energy and helps reduce Australia’s greenhouse gas emissions and mitigate climate change. There are also direct benefits for building owners and lessors as well as for prospective buyers and tenants.
A study of the financial performance of green office buildings by the University of Western Sydney, titled Building Better Returns, found that a 5-star NABERS Energy for offices rating delivered a nine per cent green premium in value and a 3.5 to 4.5-star NABERS Energy rating delivered a two to three per cent premium in value over non-rated buildings.
The benefits of investing in energy efficiency in the building sector are becoming clear - more energy efficient buildings will be cheaper to run and are likely to attract higher rents and property prices.
Examples of benefits for building owners, managers and lessors
For owners and lessors, the benefits of more energy efficient buildings may include:
- improved marketability
- competitive advantage—more efficient buildings are easier to sell and lease
- reduced vacancies and losses
- higher future capital value
- reduced risk of obsolescence
- less need for refurbishment in the future
- ability to command higher lease rates
- higher demand from institutional investors
- lower operating costs
- ability to secure government tenants
- lower tenant turnover.
Examples of benefits for tenants and buyers
For buyers and tenants, the benefits of more energy efficient buildings may include:
- reduced operational costs—for every one-star increase in an office building's NABERS Energy rating, there is an estimated 15 per cent saving in energy costs.
- more comfortable working environment
- improved ability to attract and retain staff
- improved productivity
- improved work health and safety
- improved staff wellbeing