The Commercial Building Disclosure (CBD) program has been in Federal Government legislation since 2010. However, from the 1st July 2017, the threshold for commercial properties requiring an energy efficiency assessment will reduce from 2,000m2 to 1,000m2 if they are to be sold, leased or sub-leased. Whilst many will be annoyed with the additional compliance cost, there’s a silver lining to the CBD program.
To comply with the CBD program, you are required to have an energy efficiency rating (NABERS) and a tenancy lighting assessment, both which benchmark your building against similar buildings. Receiving a low star rating, or ‘poor’ lighting assessment, means you have just identified energy savings worth thousands of dollars, and significant amenity improvements for your building.
Assuming you action these improvements, you can expect reduced energy costs for tenants, fewer tenant complaints thanks to improved indoor environment conditions, and faster rectification of building issues. Not to mention that energy efficient buildings can generate higher rents and greater capital returns. Furthermore, there are many financing products for energy efficiency improvements, including some that can provide positive cash flow for tenants and reduce the upgrade cost for owners.
So, while you may comply with the CBD program begrudgingly, don’t miss the opportunity to increase the value you provide to your tenants, whilst simultaneously improving the value of your property. To ignore the opportunities that a CBD assessment presents would be to cut your nose off to spite your Government.