Green office buildings are in vogue, as they should be. More new buildings include as standard, features like water-saving systems, smart lighting, and better use of natural light. However, many structures older than five years, which form the majority of commercial buildings in the Sydney CBD and surrounding areas, do not have these features.
This means that a large chunk of the Sydney commercial property sector is well behind when it comes to maintaining a green, sustainable facility. But there are ways to add more of a ‘green factor’ to your office building. There are also a number of ways to measure your building’s current standing when it comes to eco-friendly rankings.
What’s the current situation?
The construction and demolition industry in general is a big polluter and producer of waste, generating between 30 and 50 million tonnes of carbon dioxide annually. In terms of finished, inhabited buildings, inefficient practices like using excess electricity through poor lighting solutions, and wasting water, are rather common.
The good news though is that a number of developers, landlords, and tenants are taking action to create greener office buildings. Developers are designing and building offices that have a much more negligible impact on the environment. Some even contribute positively, through the use of green walls and waste repurposing programs.
New ways of building
Large commercial developers are using more sustainable processes and materials during the construction process. Recycled construction materials mean less emissions during the manufacturing process, while technology allows smarter use of power and water in a finished office building. This ever-advancing tech is backed by a number of large companies and funded by investors such as Taronga Ventures. Taronga recently announced that 3 Australian tech companies are to be funded in their quest to improve ESG.
What is ESG?
ESG refers to how a company behaves in the areas of Environmental, Social, and Governance. Environmental is the way that the company impacts and looks after the environment, social is how the organisation interacts with employees, clients, and any other stakeholders or involved parties, and governance refers to leadership, pay, audits, and associated elements.
Focusing on maintaining great ESG includes creating a truly sustainable office building. NABERS, a government initiative that delivers sustainability ratings, explains that buildings with higher ratings tend to have higher occupancy rates, an important piece of information for landlords and developers.
In the past 5 years, the number of buildings with 5-star NABERS energy ratings has increased by 22%. However, a large portion of commercial structures in Sydney sit at 4.5 or below. That’s an issue that needs to be addressed sooner rather than later. This not only means a more inefficient building, but higher costs for landlords and tenants alike.
The takeaway
Developers and landlords are doing more than ever to create green office buildings in Sydney. The benefits of doing so, in terms of occupancy rates, as well as business efficiency, are clear. But there’s always more to do. The important thing is that it appears the commercial property sector in Sydney is on the right track.
If you’re a tenant searching for commercial space in Sydney, we’re here to help. We have years of experience in locating space, negotiating the best prices, and getting the lease terms you want. Get in touch with Niche Tenant Advisory today for a free consultation.
