Green-rated buildings gold for investors

Green-rated buildings gold for investors
Green-rated buildings gold for investors

Green star buildings are delivering a 12% “green premium” in value and a 5% premium in rent, a new study into the financial performance of green office buildings in Australia has found. 

The link between building sustainability and increased value and returns was established following analysis of a portfolio representing 51% of the total office market floor area in Sydney and Canberra.

More than 200 National Australian Built Environment Rating System -rated office buildings and 23 green star-rated building were benchmarked against a portfolio of conventional office buildings in research carried out by The Australian Property Institute and Property Funds Association. 

NABERS is a performance-based rating scheme for existing buildings, using measured annual operational impacts on the environment, including greenhouse gas emissions and water consumption. 

The green star scheme is a comprehensive, national, voluntary environmental rating scheme that evaluates the environmental design and construction of new buildings 

The report Building Better Returns found a “green premium” was evident for both green star-rated and NABERS Energy offices, with five-star NABERS Energy buildings attracting a 9% premium in value. 

The report also found that green star and NABERS Energy buildings delivered other benefits, such as reduced vacancies and outgoings. 

“This research finds both green star and NABERS Energy buildings deliver,” says Green Building Council of Australia chief executive Romilly Madew. 

In his introduction to the report, Nathan Fabian, chief executive of the Investor Group on Climate Change, says the property industry in Australia has actively contributed to this sustainability agenda in the context of its corporate social responsibility strategies. 

“This has seen a large number of property investors effectively integrate sustainability into their business platform at all levels of their commercial activities, this including both the larger property players as well as the smaller property players,” Fabian says. 

Fabian says A-REITs are amongst the leading property players globally “in championing the sustainability agenda for property”. 

Australia’s most sustainable buildings:

 Six-star green star ratings: selected office buildings

Sydney:

1 Shelley Street

1 Bligh Street

39 Hunter Street

100 Market Street

Darling Quarter, 1-25 Harbour Street

The Ark, 16-40 mount Street

Workplace6, 44 Pirrama Road

 

Melbourne:

200 Victoria Street

ANZ, 833 Collins Street

Council House 2, 218-242 Little Collins Street

Szencorp Building, 40 Albert Street

The Gauge, 825 Bourke Street

Pixel, Building 9, The Brewery

Brisbane:

123 Albert Street

33 Breakfast Creek Road

512 Wickham Street

King George Central, 145 Ann Street

Green Square North Tower, 515 St Paul’s Terrace

Santos Place, 32 Turbot Street

Perth:

2 Victoria Street

Canberra:

9/31 City West Offices AEI Office, Trevor Pearcey House, 34 Thynne Street

Adelaide:

SA Water House, 250 Victoria Square

 

Six- and 5.5-star NABERS Energy rated offices

NSW:

76 Berry Street, North Sydney

60 Burelli Street, Wollongong

Legion House, 161 Castlereagh Street, Sydney

Quad 4, 8 Parkview Drive, Homebush

 

Victoria:

Centrelink Office, 69 Heygarth Street, Echuca

2 Nexus Court, Mulgrave

Nexus Corporate, 37 Dunlop Road, Mulgrave

 

Queensland:

Police Barracks Building 1, 61 Petrie Terrace, Brisbane 158 Hume Street, Toowoomba

 

Western Australia:

100 St Georges Terrace, Perth

 

Northern Territory:

Darwin Plaza, 41 The Mall, Darwin Jacana House, 39 Woods Street, Darwin

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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