Are You Fit and Ready for Mandatory Disclosure?
Are You Fit and Ready for Mandatory Disclosure?
| 19 Feb 2010 |
If you’re serious about protecting your commercial property investment, you must act now: |
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| With less than six months to go before the Federal Government’s proposed legislation for “Mandatory Disclosure of Commercial Office Building Energy Efficiency” is introduced, there’s growing pressure on owners and operators of commercial properties to assess and improve the environmental performance of their facilities. Disclosure obligations mean that corporate building owners will now need to report on the energy efficiency of their building - a move that’s set to ensure energy efficiency becomes a deciding factor around commercial sales and leasing. “Up until now, there’s been little incentive for landlords to improve energy efficiency of their buildings,” says Andrew Permezel, CEO of AE Smith. “We’re applauding this proposed legislation as a real step towards calling to task the built environment's impact on carbon emissions,” adds Permezel, who has ensured AE Smith is investing heavily in services to design, construct, manage and maintain energy efficient buildings. This new legislation, set to take effect from mid 2010, is based around a cost effective abatement of emissions opportunity that will help reduce the impact of carbon emissions from commercial office buildings. Currently, commercial buildings account for approximately 10% of Australia’s carbon emissions.* The Federal Government proposes to use the National Australian Built Environment Rating System (NABERS) as the standard to guide new disclosure obligations. The disclosure obligations means NABERS ratings must be included in any advertisement for sale or lease of applicable buildings; the lodging of a valid Building Energy Efficiency Certificate (BEEC), and as soon as possible during enquiries the supply to prospective buyers or tenants a copy of the certificate, free of charge, whether requested or not. The certificate will generally detail the base building NABERS Energy rating, tenancy lighting details and guidance on improving energy efficiency. However, this growing pressure on building owners and landlords is not necessarily translating into action says AE Smith’s Andrew Permezel, who believes many building owners are unprepared for the introduction of this new legislation: “We’re urging building owners to start preparing their building now, rather than waiting for when they place their asset on the market,” comments Permezel, who cautions building owners that it takes time to get the various legislative requirements in place. With the vast majority of existing commercial buildings around Australia not NABERS rated, AE Smith predicts a “rush” on NABERS assessment, certification and implementing the appropriate retrofit actions to help make commercial buildings more energy efficient as well as more commercially attractive. “For very practical reasons, it’s important to allow enough time to collate base building data to assess the performance of your existing building,” adds Permezel, who cites that NABERS Energy ratings require 12 months of continuous data as part of the strict validation and verification protocols. Importantly, beginning the assessment process helps identify opportunities to improve a building’s energy efficiencies and what building owners can do to close the gap - to improve efficiencies, save costs and also make their building more commercially competitive. “The introduction of Mandatory Disclosure will also see energy efficiency become the norm in Australia,” says Doug Binns, General Manager of AE Smith Emerald Sustainable Performance. AE Smith Emerald Sustainable Performance is a dedicated energy services business that’s aimed at helping building owners and property managers improve the environmental and energy performance of existing buildings. With increasing pressure on owners and operators, Binns believes the time is right to set in place long term strategies for reducing energy use and developing better efficiencies for their building assets: “Very soon, if not already, key decision influencers typically associated with a building sale or lease will also include energy efficiency,” comments Binns. “To simply remain competitive with your building asset in the future, energy efficiency measures will need to be put into place now,” adds Binns. There is already some good quantitative evidence emerging that energy efficient buildings will attract a premium in the property market place. A recent study conducted for the Property Council of Australia shows there will be a split in the market between buildings with a higher NABERS rating. Buildings with a NABERS rating 3 stars or better were valued at a premium compared to buildings that are rated below NABERS average (2.5 Stars or below).** “Building owners will have to factor their desired NABERS Energy rating into the long term asset plan of their building,” comments Binns. For more information contact Doug Binns on 0488 698 160. |
| * Australian Government 2009, Department of the Environment, Water, Heritage, and the Arts, 'Mandatory Disclosure of Commercial Office Building Energy Efficiency Regulation Document', Nov. ** Property Council of Australia 2009, 'The Missing Link', Property Australia, 19 Feb. |
