Why there has never been a better time to act
Since 2008, a tough financial market with many complexities in the wake of the global credit crunch has formed the undercurrent for a consistently weak commercial property market (when Lehman Brothers filed for bankruptcy). Unless, of course, you own a green rated building, in which case your returns would have been greater than those who don’t!
An economic crisis doesn’t detract from the fact that many of our existing commercial (industrial and retail) building stock is in dire need of upgrade works.
“More than half of our city’s buildings are ageing, energy guzzling structures desperately in need of upgrading.” – Lynne Blundell (Writer, 5th Estate and EUA ebook).
But we’ve come a long way since 2008. Sustainability investments have risen by 33% in Australia since 2010, faring better than the broader market.
Politically speaking, the government’s Clean Energy Future Package prioritises Australia’s economic growth with sustainability at the lead. The carbon price mechanism within this package is being used to reduce household and industrial pollution – and it’s working so far.
There’s never been a better time for an EUA.
- Interest rates are trending down with expectations of the bottoming of a cycle within 6-12 months,
- Energy prices are continuing to rise – with debate focused on how soon and how high,
- Cost of solar panels and other retrofit items is trending further downwards and supported by high Australian dollar;
- Better performing buildings outperform for the second year in a row.
While economic fundamentals keep changing, the environmental fundamentals are not.
With more than half (53%) of carbon emissions in the Melbourne city municipality a result of ageing, energy inefficient buildings in the commercial sector, a major refurbishment cycle is currently upon us. This is a huge opportunity! We estimate that somewhere between $40 million and $60 million in annual savings can be generated, which when captured, can be reallocated to capital improvements of only two thirds of the City of Melbourne’s building stock. And remember ‘green’ rated buildings deliver superior returns.
Many of these buildings double as workplaces. Think of the thousands of Melburnians working in these spaces and the opportunity for creating a healthier, more energy efficient Melbourne and a more productive workforce!
Contact us to find out how you can create a healthier workplace by ‘greening’ your building.