“This was particularly evident in buildings with relatively low initial levels of energy performance,” an ACIL Allen report found.

The report estimated large amounts of energy consumption and greenhouse gas emissions would be reduced as a result.  The scheme covers about 5,000 buildings with 26 million square metres of space.  It applies to office floor spaces of 2,000 square metres or more at the time of sale, lease or sublease.

One recommendation is to extend the program to more buildings, by lowering the disclosure threshold to 1,000 square metres.  Another is to extend the validity of office lighting assessments from one to five years.

The Green Building Council of Australia’s Romilly Madew backed the extension of the scheme: “There are an estimated 80,000 mid-tier commercial office buildings around Australia, but this sector has traditionally lagged behind in energy efficiency upgrades.”

Engineer Paul Bullen, an assessor with property consultants Napier & Blakeley, said there was a greater amount of spaces leased below 2,000 square metres, aside from multiple floor tenancies.  “It sounds like it’s going to be busier,” he said.

Colliers International’s John Marasco said landlords were motivated to “future-proof” their assets because tenants wanted more energy efficient buildings.

Published in The Financial Review
Written by Nick Lenaghan
11 February 2016