City landlords of existing office buildings should consider greening, says report

While prestigious new office buildings are achieving 6 Star energy ratings, city landlords of existing buildings can also green their office buildings to boost the value of their assets, said Total Environment Centre (TEC).

TEC’s business sustainability arm, Green Capital, has released a report analysing Sydney-based case studies as part of the Lessons and Tools from Existing Office Building Leaders Project funded by the NSW Environmental Trust. A selection of B-, C- and D-grade office buildings was reviewed after owners had embarked on capital works and improvements to increase the NABERS (energy) ratings of their assets.

The report found that building owners were able to get substantial results within realistic economic constraints and be more attractive to tenants. But it did take careful planning, help from experienced consultants and contractors, and a commitment to investigate options.

The cost of getting a consultant to audit your building - generally in the order of a few thousand dollars - can quickly and in some cases immediately pay for itself “by direct energy savings or avoidance of expensive emergency maintenance” the TEC report said.

“In many cases, simple actions such as recalibrating a building management system (BMS) provided significant energy savings. Based on the performance of their newly upgraded buildings, some of the landlords who took part in the study expect to see a return on their investment within three years of undertaking works,” said Jeff Angel, Executive Director, TEC.

The report also found that a building can only be allowed to run down, so much, before it significantly begins to lose tenants and diminish in value, with the chance it will become harder to sell or be left ‘stranded’.

Many of the case studies identified in the report received grants from the Green Building Fund, now closed. However, there are other sources of funding and subsidies available, including the Energy Savings Schemes and the Energy Saver Program.

Environmental Upgrade Agreements also provide more easily accessible funding for refurbishment works, based on a better rate and longer loan terms.

Green Capital is holding two free seminars on upgrading buildings and how to achieve successful results from a retrofit. The seminars are being held in Parramatta on 25 June and Sydney on 27 June.