Rethinking The Australian Office

Slightly further afield, the Australian government is currently discussing policy that would require buildings to meet a minimum of 4-stars NABERS rating by 2030 and 5-stars by 2032. Currently only 30% of buildings in the Sydney and Melbourne CBDs clear the 4-star hurdle. This drops to 24% in Sydney and 17% in Melbourne respectively when the bar is lifted to 5-stars. In this context, it is critical for landlords to take a holistic view of their longer-term capex plans. Prioritising projects based on urgency and potential impact can help to ensure that the most critical upgrades are completed first. Furthermore, to ensure that upgrades are done in the most efficient manner, landlords must be able to overlay their plans for upgrading the environmental ratings of their buildings with their regular capex plans. For example, if a major upgrade or refurbishment is planned, why not also undertake environmental upgrades or quality improvements at the same time? The two are not mutually exclusive. This would allow minimising cost outlays on planning by economising spending on project managers and engineers. Concurrent execution of capex and environmental investments would also minimise the length of any disruptions to tenants.

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CUSHMAN & WAKEFIELD