Sydney Morning Herald
Wednesday 6/10/2010 Page: 6
OFFICE landlords are bracing themselves for the new disclosure requirements for up-to-date energy efficiency information on buildings. They take effect on November 1. In July the Building Energy Efficiency Disclosure Bill was passed by Parliament. It requires the disclosure of energy efficiency ratings and advisory reports at the point of sale or lease for any commercial office space with a net lettable area of 2000 m² or more.
Jonathan Kriska, a property analyst from the broker Patersons, said the federal government intended to progressively expand the scheme's coverage to include additional building types such as industrial and retail properties. Mr Kriska said the immediate effect of the scheme was unlikely to alter valuations for owners, but in the medium term he expected managers of the real estate investment trusts, which own about 80% of Sydney's city buildings, would seek to improve their portfolio energy efficiency by trading assets and improving existing assets.
Much of the central business district buildings are older B and C grade assets that will require extensive renovations to become energy efficient. Already the Commonwealth Property Office Fund said it would spend $330 million upgrading its 120 Pitt Street site. Other landlords are set to follow suit. "An estimated 23% of all carbon emissions come from buildings and their occupants, with almost 10% of national emissions from commercial office buildings", Mr Kriska said. "While the measurement of building energy efficiency is clearly in its infancy, we expect this to be a major topic for the REIT sector in coming years.
"Government tenants now require a minimum four-star National Australian Built Environment Rating System [NABERS] rating and five- star NABERS ratings are becoming more common for new leases for major corporates. "In time we expect at least a four-star rating will become the minimum requirement for leading tenants". As a reflection of the increased trading within the property sector, the analysts at J.P. Morgan have estimated there is about $12.3 billion worth of commercial assets now for sale. These include the $900 million Woolworths portfolio and the remainder of the Direct Factory Outlet stores that were not part of the sale to CFS Retail.
0 comments:
Post a Comment