Demand for green buildings tipped to grow

MAARTEN HOLL/Fairfax NZ

STAR TEST: The Meridian Energy building on Queens Wharf was given a five-star green rating for its eco-friendly design but until now there's been no system for assessing how it really rates.

Demand for "green" environmental sustainable buildings is certain to grow again, says commercial property lawyer Patricia Green.

Green, who heads the Wellington property team at Minter Ellison Rudd Watts, said that while earthquake strengthening was a priority for landlords, they should also get to grips with the new building energy rating system.

The six-star NABERSNZ rating system is based on the National Australian Built Environment Rating System, which measures the energy efficiency, water efficiency, waste efficiency and indoor environment quality in office buildings.

It is being introduced by the middle of this year by the Energy Efficiency and Conservation Authority and the Green Building Council.

Speaking at an Energy Management Association conference, Green said there was evidence out of Australia that high ratings attracted higher rents and higher- quality tenants.

"Right now, Wellington business owners are distracted by other issues, such as earthquake strengthening and increased insurance costs."

However, they needed to get up to speed with the new energy rating system.

The first step was to get an energy management expert to assess a building and advise on what was needed to achieve a rating.

The rating system was not mandatory. But the demand for green buildings was likely to grow again and high ratings gave a competitive advantage.

Employers wanted to show that they took energy efficiency seriously.

"It also comes down to the bottom line, as an energy-efficient building will result in lower energy costs," said Green.

EECA chief executive Mike Underhill said NABERSNZ was a game changer for the commercial office real-estate market.

"It will help tenants and owners understand energy performance at a glance."

By looking at a rating owners and tenants could see how well a building or tenancy was performing, and get an indication of likely energy costs.

A five-star rating is considered a market-leading performance, with a typical office building likely to rate between 2.5 and three stars.

To achieve a rating, qualified assessors will use 12 months of energy use data, and take into account building area, location, computer density, and hours of operation to rate performance.

Green Building Council chief executive Alex Cutler said it was the most exciting development in commercial green building ratings in New Zealand since the launch of the Green Star tool in 2007.

The scheme is now being piloted with 11 trained assessors scoring a cross-section of New Zealand office buildings.

"The pilot phase allows us to rigorously test the NABERSNZ tool to ensure it is technically robust and meets industry needs," said Cutler.

EECA commercial programme manager Karen Chaney said there were significant opportunities to improve the energy performance of commercial buildings in New Zealand. The buildings use about $1.7 billion in energy every year and account for 9 per cent of national energy use.

"These opportunities are mainly in improved efficiency of heating, ventilation, air conditioning and lighting systems," Chaney said. "Increasingly, tenants and building owners are seeking out premises where these systems are performing efficiently because this means lower operational costs."