Posted on Wednesday, September 14th, 2011 in by Matt Garmony
A recent report commissioned by the Australian Property Institute and the Property Funds Association of Australia has revealed Green Star-rated buildings and NAMBERS Energy Ratings add value to commercial properties. The Building Better Returns Study found gaining a top level environmental rating can add at least 9% to the value of a building. Commentary from the Australian Property Institute said “the study showed environmental rating schemes were delivery benefits, including lower vacancy and building running costs (outgoings)”.
We are of the opinion, the tenant would have lower outgoings and building running costs, thus being able to afford higher net rents for Green buildings, paying a similar overall gross rent to a non or lower Green Star rated building and providing a greater return to the investor. The eastern states based study has confirmed the benefits of “going green” which hopefully will encourage the Perth market to do the same.
Our licensed valuers are able to assist property investors and developers with valuations and feasibility studys on proposed commercial developments and or re-developments to help identify the financial benefits of Green Star Ratings.