After many months of preparation, mandatory disclosure of the energy performance of buildings finally comes into effect from 1 November. This means that any time office space of greater than 2,000 sqm is sold, leased or sub-leased, landlords or sub-lessors must disclose an official NABERS Energy rating for the building, or face fines of over $100,000. This is a strong and positive shift in the industry. It will bring unprecedented transparency by allowing potential purchasers and tenants to compare energy performance at a glance. I anticipate that this will significantly raise the profile of energy management in landlord-tenant relationships.
The scheme has had a very long pregnancy, having been first discussed in 2004, yet surprisingly, many owners are still struggling to understand how the scheme will work, and what they need to do to comply. Owners of highly efficient buildings will be well placed to preserve asset values and rents. However, those with buildings that perform poorly or are un-rated will need to move quickly to develop a strategy for complying with the scheme and effectively marketing their buildings.
For many, this will be the first time a NABERS rating has been performed on their building. As this process can be time consuming and complex, it is important to start early. You can read more here.