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
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
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