Australia’s valuers have confirmed the hype - going ”green” definitely increases the value of an office building.
The buildings worth the most are those that have the best energy rating, the Australian Property Institute found in a report it said was the first rigorous assessment of green office buildings in the nation. Buildings with low energy ratings lost value.
The study said office buildings with a five-star NABERS (National Australian Built Environment Rating Scheme) energy rating created a premium of 9 per cent, while three to 4½ stars delivered a 2 to 3 per cent premium in value. The Green Star rating showed a premium of 12 per cent.
NABERS measures energy and water use in existing buildings, while Green Star evaluates the environmental design and construction of buildings.
The API was the lead group for the study, which was led by Richard Bowman, senior API committee member and a partner in real estate services with Ernst & Young. He headed a panel of experts representing the big estate agents and valuation firms.
The study evaluated 206 NABERS-rated office buildings and 160 non-NABERS buildings in Sydney and Canberra. Of the NABERS-rated buildings, Sydney’s central business district accounted for 90, suburban Sydney 91 and Canberra 25. They included premium, A, B and C grade and 97 per cent had an area greater than 2000 square metres.
The analysis used 23 four to six-star Green Star buildings for the ”office design” and ”office as built” categories.
The portfolio comprised Sydney CBD (22 per cent), Sydney suburban (39 per cent) and Canberra (39 per cent) and Green Star ratings of four stars (43 per cent), five stars (48 per cent) and six stars (9 per cent).
The study was prompted by concerns about the environmental impact of the property industry. It said buildings contributed up to 23 per cent of carbon dioxide emissions, 40 per cent of energy requirements, 16 per cent of water use, 30 per cent of solid landfill waste, 40 per cent of raw materials and 71 per cent of electricity consumption.
