Green ratings become benchmark for premium buildings

The Property Council of Australia has revised its Guide to Office Building Quality and now stipulates that 5-star Green Star and 5-star NABERS Energy ratings are the benchmark for Premium Grade buildings.

Council CEO Peter Verwer said the new expanded environmental performance metrics in the Guide “demonstrate what industry already knows—sustainable design and management of office buildings has become part of core business”.

Romilly Madew, CEO of the Green Building Council of Australia (GBCA), agreed. “‘Premium’ and ‘Green Star’ are now synonymous. The market now equates ‘premium quality’ with high-performance, green buildings.”

The guide describes 60 parameters for the classification of office space into grades, from Premium to
Grade A, B, C or D. Criteria include building size, location, environmental performance, mechanical and electrical provisions as well as building services and amenities.

“The Australian Property Institute and Property Funds Association’s Building Better Returns report, released in September, found that Green Star-rated buildings are delivering a 12 percent ‘green premium’ in value and a five per cent premium in rent,” said Madew.

“A building with a high Green Star rating is not only considered ‘premium’ office accommodation, but is also more likely to deliver a range of benefits from higher return on investment, reduced vacancies and rental premiums. It’s clear that Green Star makes good business sense.”