by Nick Bruse
Currently I’m doing quite a bit of work in the Green Building Industry and we are currently seeing a very rapid transformation in the thinking of leading developers around green building development.
In today’s ‘The Age’ one of Australia’s major newspapers we have Daniel Grollo, one of the high profile developers in Australia, admitting to the market that 2 years ago he was wrong in only shooting for a 4 star Green Building Rating (6 currently the highest) on a number of developments. The demand from tenants has sky rocketed recently, and luckily design consultants advised him to go for one star higher. While this cost the company more, had they not done so they would have delivered an obsolete building.
Next week I will be heading down to Tasmania to moderate a panel session of the ADPIA (Australian Direct Property Investment Association) dealing with sustainability and green building development. Through my work with my current client who advises property developers and project manages construction projects, the biggest issue clients are stating is “How do I achieve sustainability in my property portfolio or asset effectively?”
Whilst the technologies to achieve significant reductions in energy use, water consumption and waste production, and the tenant market in Australia is demanding green star rated buildings, there is still a lot of uncertainty in developers of how to actually transition their portfolios. Quantifying the returns, choosing between alternative solutions, even choosing a service provider is challenging in this space.
That said, the expectation is that there is unlikely to be any new major developments in Australia now with a green star rating of less than 5. Water pressures is one thing driving this issue, but for the most part, major tenants are willing to pay more for a green star rated office in Australia, because it offers them better productivity, better employee attraction and retention and lowers their overall costs.
Nick Bruse runs Strike Consulting, a growth venture consultancy specialising in the cleantech sector and hosts the cleantech show, a weekly podcast of interviews with leaders involved in clean technology research, entrepreneurship, commentary and investment.