The CBD Program applies to office buildings and areas.
A disclosure affected building or area must be used for the following purposes:
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administrative
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clerical
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professional
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similar information-based activities
Kitchenettes, break-out areas, and any support facilities are included as part of the office footprint.
The office footprint must be at least 1000 m2 to be disclosure affected.
Office buildings or areas with a net lettable area of less than 1000 m2 do not have any obligations under the Building Energy Efficiency Disclosure Act 2010 (the BEED Act) and the CBD Program. You can voluntarily comply with the CBD Program by including a NABERS Energy for offices rating in your advertising, and by having a current registered BEEC for your building or area.
If a single building contains less than 75% office space by net lettable area, the building is considered ‘mixed use’ and is not disclosure affected.
The definition for ‘office’ is set out in the Building Energy Efficiency Disclosure Determination 2016 (the BEED Determination) under sections 5 and 6. The triggers for an office to be a disclosure affected building or area are set out in the BEED Act.
The definition for ‘office’ set out in the Determination captures all activities that would typically take place in a commercial office space, as listed above. While it is generally easy to determine whether a space is used as an office, some more complex circumstances can arise which change whether a building or area is disclosure affected. Certain exemptions may also apply.
Read more about disclosure affected buildings.
Measuring net lettable area of office space
Net lettable area is the total office space in a tenancy. It’s measured in square metres (m2) and is the area between internal walls of a building that is being leased.
Office space is any space used or capable of use for administrative, clerical, professional or other information-based activities. This includes spaces that are vacant at the time of measurement. It also includes any support facilities for those activities such as breakout areas and kitchenettes.
Gross lettable area can be used if net lettable area data is unavailable.
The CBD Program uses Property Council of Australia’s Method of Measurement: Commercial guidelines to define these measurements.
Mixed use or multi-purpose spaces
A building may contain commercial office space and non-office areas such as warehouses, manufacturing/support facilities, medical centres, hotels or retail outlets. All current and prospective uses are to be considered when determining if the CBD Program obligations apply.
If a mixed-use building contains less than 75% office space by net lettable area, then it is not disclosure affected.
If a building or area of a building has been designed for a variety of uses and has not been fitted out at all (or it only has a shell and core fit out) then it may be disclosure affected if offered for sale, lease or sublease as office space.
Read about mixed use buildings.
Spaces originally created as offices being used for other purposes
If a building or area of a building was originally created for an office but has been fitted out for other activities, then it will be considered to be used for non-office purposes and it is not disclosure affected.
This may include buildings fitted out and used for:
- commercial gyms, retail or other non-office uses.
Buildings and areas are not disclosure affected while they are occupied for non-office uses. This may change if the building is no longer occupied, and the vacant space is made good for office use again.
A building was originally constructed as a commercial office building.
A culinary college leased the entire building and fitted it out with commercial kitchens, a training café, and a room for cooking demonstrations.
The lease ends in 6 months, and the owner wants to advertise now to any potential tenants, including those seeking office accommodation.
The building is not disclosure affected because the building is not currently used for administrative use, even if the advertising states that the building was constructed as office and could be used as one in future.
The building can be advertised for lease or sale without a BEEC or an exemption, while it is still leased by the culinary college.
A building was originally constructed as a commercial office building.
50% of it is leased as office space. A gym leased the other 50% and fitted it out with exercise equipment and mirror-walled rooms for group classes.
The lease ends in 6 months, and the owner wants to advertise now to any potential lessees, including those seeking office accommodation.
The building is not disclosure affected because less than 75% of the building is currently used for administrative use, even if the advertising states that the building was constructed as an office and could be used as one in future.
The building can be advertised for lease or sale without a BEEC or an exemption, as long as more than 25% of it is still leased by the gym.
Spaces designed for non-office use
If a building or an area of a building was created for activities other than office use, and it remains adapted for those activities, then the building or area of a building is not disclosure affected. There are no CBD Program obligations, even if advertising highlights the potential for the building to be converted to an office in the future.
However, if the building or an area of the building is converted to office use then it may become disclosure affected.
A building is a 5,000 m2 warehouse. The ceilings are double height with high bay lighting, minimal insulation and no air conditioning or heating.
The owner hasn’t been able to attract a warehouse tenant and wants to advertise that the building could be refurbished for office use.
The building is not disclosure affected as it was not constructed as an office and can’t be used as an office in its current state. The owner can advertise the building for office use without a BEEC or an exemption.
However, if the building or an area of the building is converted to office use then it will become disclosure affected. A BEEC or exemption would be required before further advertising or offering the disclosure affected building or area for sale, lease or sublease.
A building is a 5,000 m2 warehouse. The ceilings are double the height of a normal building with high bay lighting, minimal insulation and no air conditioning or heating.
The owner has received interest in his building from several potential tenants who would move in if it was fitted out for office use, but they will only occupy part of the building.
The owner decides to refurbish the whole building to make it fit for office space but needs to advertise to fill the remaining empty office space he will create.
For the purposes of the CBD Program this would count as a major refurbishment, because the NABERS Energy for offices rating is changed by at least half a star. The building is not disclosure affected while the building refurbishment is planned or underway as it was not constructed as an office and cannot be used as an office in its current state.
The owner can advertise the planned new office spaces without a BEEC or an exemption while the refurbishment is being planned or underway. Because a new Certificate of Occupancy is issued following the major refurbishment, the building is automatically not disclosure affected for 2 years.
Following this 2-year non-disclosure period, the owner will need a BEEC or exemption to continue advertising, because the building is now suitable for office use.
Vacant spaces
If a space is vacant, it may be disclosure affected if it is suitable for office use. This include spaces in buildings created for or previously used as non-office or multiple uses, but which now may be suitable for office use (including where a non-office fit out has been removed or ‘made good’) but which may now be suitable for office use.
In these circumstances buildings may be disclosure affected (unless an exemption applies) but still unable to obtain a NABERS Energy for offices rating, because of previous use for non-office activities.
The building owner or landlord may apply for an exemption from the disclosure obligations under the BEED Act on the basis that the building or area is non-assessable.
Read about applying for an exemption.
A building owner may intend for their building to be used for a non-office purpose in the future. However, if the building in its current state is capable of being used as an office space, the building owner must comply with the disclosure obligations under the BEED Act.
Following an end of lease and the sale of a building, a culinary college tenant vacates the building. They remove their fit out and all their training equipment. Pending a fit out, the space is now suitable for office use.
The new owners want to offer the space for lease to any potential tenants, including those seeking office accommodation.
The building is now disclosure affected because it is suitable for office use. However, it is not possible to calculate a NABERS Energy for offices rating for the building, because of its previous use by an educational tenant. The NABERS rated area is zero. This means that the building can’t obtain a BEEC.
When a gym company closed down, they broke their lease in a building that was originally built for office use. They moved out without completing any make-good works, leaving exercise equipment and the mirrors on the walls.
The owners now want to offer the space to any potential tenants, including those seeking office accommodation.
The building is not disclosure affected because the fit out of the previous tenant remains in the building and it is currently unsuitable for office use.
An office building has been fully vacant for more than 12 months. Due to high vacancies in the office rental market, the owner wishes to sell the site to a developer to convert it for residential use. Prior to commencing marketing, the owner obtains development approval from the local council for a redevelopment.
The building is disclosure affected. Even though the owner does not intend for the building to be used as an office in the future, it is being offered as a vacant office block capable of being used as an office.
However, it is not possible to calculate a NABERS Energy for offices rating for the building, because the NABERS rateable area is zero due to the vacancies. This means that the building can’t obtain a BEEC.
To meet their disclosure obligations, the owner will need an exemption for the building. In the exemption application, applicants must:
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obtain a statement from a CBD Accredited Assessor to support the exemption application
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provide written evidence from the building owner or their agent, confirming that the building has been vacant for more than 12 months
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provide photographs of the vacant areas of the building.
Read more
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Understand the definition of ‘building’ for the purposes of the CBD Program
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Mixed use buildings can be considered disclosure affected
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Check whether an exemption may apply