Do you know your NABERS?
Do you know your NABERS?
Buying or leasing a commercial property comes with many areas of complexity. When looking at commercial property over 1,000sqm you will inevitably hear the term NABERS referenced in all information you are provided.
So what’s NABERS and how do you discover the NABERS Energy rating for a commercial property?
What is NABERS?
NABERS is an official government resource that helps you to discover and measure the environmental performance of a building. Data can be provided for properties across a diverse range of sectors. For example hotels, shopping centres, offices and data centres.
By discovering how a building is performing, a commercial property investor, owner or tenant can identify ways they can save some of the operational costs that occur within the property by making improvements to increase the building’s rating. In turn this also assists with the environmental performance of a building and can assist in identifying areas for sustainable improvements in future.
Your NABERS rating explained
A NABERS Energy rating can assess the sustainability of a building across four distinctive areas:
- Waste, and
- Indoor environments.
For each of these areas, a building will be rated between one and six stars. One star suggests the building is making a start in that area, two stars is below average, three stars represents an average performance, four stars is a good performance, five stars is an excellent performance and six stars represents a market leader in that area.
It's important to be aware that a NABERS Energy rating is only valid for twelve months. Therefore, commercial property owners and tenants with a focus on sustainability should check back annually to determine if any progress has been made or to identify any areas where decline has occurred and work is required in order to increase efficiency and avoid additional expenses occurring that may affect your bottom line.
How will improving your NABERS rating help you to save?
There are a number of ways that improving your NABERS rating can help you to save money or ensure your commercial property is more attractive to tenants including:
- Reducing operating costs
- Increasing the market value of the property
- Improving the rental income
- Reducing vacancy rates, and
- Reducing greenhouse gas emissions and environmental impact.
If your building is able to achieve a rating of 0.5 stars higher than the average building stock for your building type or score at least 0.5 stars higher than the building’s historical NABERS Energy rating, there are additional financial incentives you can access.
Other benefits of knowing your NABERS
In addition to the financial benefits, there are other benefits of knowing the NABERS rating for your commercial property. For example:
- You can compare how your building’s energy and water efficiency is rating to industry benchmarks and see if improvements can be made to match your competitors
- You can help contribute to climate change, as buildings are responsible for 40 per cent of the world’s carbon emissions
- The star rating provides a framework for your annual reporting on sustainability strategies and a way to track and report any improvements made over time
- Buildings with lower environmental impacts and running costs give commercial building owners an advantage with prospective buyers, potential tenants, procurement teams and consumers who utilise the building for the goods or services it provides.