NABERS ratings - are you ready?

If you own or lease office space, then you need to know about the new Commercial Building Disclosure scheme (CBD) beginning 1 November this year. CBD will require office buildings to disclose their NABERS Energy ratings when they are offered for sale or lease.

From 1 November, advertisements for the sale or lease of office space over 2000 m² will include a NABERS Energy rating out of 5 stars. NABERS Energy is a measure of energy performance which has been used voluntarily for more than a decade by property managers actively seeking to improve the environmental performance of their buildings.

Developed and managed by the NSW Department of Environment, Climate Change and Water (DECCW) on behalf of Australian state, territory and federal governments, NABERS ratings have evolved and adapted over 10 years to meet the needs of Australia's built environment stakeholders.

Today, around 50% of the national office market is voluntarily rating their energy efficiency using NABERS Energy, achieving combined annual savings of 200,000 tonnes of greenhouse gas emissions.

The rating lets you compare the energy efficiency of office buildings and to choose the most energy-efficient and sustainable office space. The choice to occupy a 5 star building sends a strong message to employees, clients and the community that you have a serious commitment to good environmental performance.

Under CBD, the rating disclosed will be a base building rating, comparing the energy use of services like lifts, common area lights and HVAC. Any office tenant can also choose to rate the efficiency of their own tenancy using NABERS, which measures the energy use of things like tenancy lighting and office equipment.

A NABERS rating is based on the actual performance of buildings. It is undertaken by accredited, qualified assessors and provides a rating of between 1 and 5 stars. A 2.5 star rating represents the market average. Five stars demonstrates excellent performance, one star means there is room for improvement.

A good NABERS Energy rating represents a commercial advantage and property managers who are not already using NABERS are advised to start now to allow time for improvement if the assessment shows the building is performing poorly.

DECCW Manager Built Environment Matthew Clark said that in an environment where capital for new build projects is still scarce, the focus for Australia’s property industry is on maintaining the performance and income of existing assets.

“Prospective building owners and tenants are looking for buildings where they can maximise the environmental bottom-line performance,” Clark said.

“Maximum occupancy and reduced operational costs are integral and NABERS-rated buildings are driving this market forward in Australia.”

Experienced NABERS Assessor Steve Hennessy said preparing for a rating, by gathering data such as energy bills, NLA details and occupancy, can help to make the rating process very simple and straightforward.

“It is, however, important to plan ahead and not assume a rating can be conducted quickly,” Hennessy said.

“If you wait until the last minute, you may well come unstuck with hiccups such as missing bills or outdated lease surveys, so it is prudent to undertake a rating now.”

Major property owners, such as Dexus, have rated their buildings many times. Dexus Property Group's Sustainability Manager, Alex McKenna, said the NABERS Energy tool has proved invaluable over the past 18 months in the establishment of the company’s sustainability strategy.

“NABERS tools provide an excellent basis to verify the efficiency improvements a site has made,” McKenna said.

The tools are recognised globally as promoting best practice environmental targets. By comparing the sustainability performance of different buildings, NABERS provides a straightforward indication of how well buildings are meeting efficiency targets.

The rating captures a full 12 months of energy performance, so making energy-efficiency improvements as early as you can will ensure that you earn the best rating possible next time. Energy savings from upgrades made just before a building is rated will not be reflected in the rating.

In addition to energy savings, NABERS ratings also play a key role in ‘future proofing’ an asset. McKenna agrees that to remain competitive and marketable to tenants and investors, a building must conform to increasingly high environmental expectations.

“Increasingly, NABERS Energy targets are incorporated in Dexus’s leasing agreements and are part of the building offering to potential tenants. NABERS Energy provides a common language between landlord and tenants who are looking for more sustainable offices,” she said.

If you haven’t used NABERS before, the introduction of the new CBD disclosure requirements is the perfect time to explore the benefits for your own premises. Obtaining a rating and improving environmental performance is easy.

For more information on NABERS, visit www.nabers.com.au.

Details of your obligations under the CBD scheme can be found at www.cbd.gov.au.