The goal of any retrofit project is to improve the performance of a building.
Benefits include:
lower operating costs
higher return on investment and higher rental income
lower tenant churn and vacancy rates, opening the building to new tenant markets
higher overall capital value of the building
lower environmental footprint and greenhouse gas emissions
improved indoor environment quality
money saved investing in energy infrastructure
future-proofing against tenant demands and government regulations
corporate image benefits
making the building more attractive to investors
benefits for the city as a whole
The benefits in detail
Lower operating costs
One of the biggest and most obvious benefits to reducing energy consumption in buildings is that energy bills go down.
Higher return on investment and higher rental income
Tenants are often willing to pay more for leases in buildings with good environmental performance and energy efficiency.
Lower tenant churn and vacancy rates, opening the building to new tenant markets
Many government departments now require minimum energy efficiency and environmental performance levels from the office space they lease. The private sector is starting to make similar demands.
When a building meets or exceeds these expectations, tenants are likely to stay in the building longer and this could also be a factor in attracting new tenants.
Find out more about Melbourne’s green office program.
Higher overall capital value of the building
Improvements to a building’s systems and infrastructure should increase its overall capital value.
Lower environmental footprint and greenhouse gas emissions
A building that uses less energy is responsible for fewer greenhouse gas emissions. Retrofits also present the opportunity to improve waste management, use more sustainable construction materials and improve water efficiency.
Improved indoor environment quality
Indoor environment quality has become an important issue in modern office buildings. Retrofits offer the perfect opportunity to improve indoor environment quality, which in turn may have benefits for tenant health and productivity.
Money saved investing in energy infrastructure
If a building becomes more energy efficient it is possible that upgrades to switchboards and other electrical infrastructure can be avoided, saving both time and money.
Future-proofing against tenant demands and government regulations
Many government departments already demand minimum levels of energy and environmental performance from the office space they lease. Energy efficiency measures have been introduced into the Building Code of Australia as well.
A retrofitted building will meet the energy efficiency and environmental performance demands of the future.
Improving corporate image
Your commitment to energy efficiency and sustainability can have corporate image benefits. More and more tenants are seeking these qualities in the buildings they occupy and also in the companies they deal with.
Making the building more attractive to investors
If a building is efficient, with minimal running costs, attracting and retaining quality tenants and well placed to comply with the market demands of the future, it should be more attractive to investors.
Benefits for the City of Melbourne
The 1200 Buildings program aims to:
- eliminate 383,000 tonnes of CO2-e per annum – equivalent to 7,660,000,000 black balloons
- drive $2 billion of private sector reinvestment
- create 8000 ‘green collar’ jobs – engineers, environmental and sustainability consultants, builders, surveyors and many other industry professionals
- stimulate Melbourne’s economy during global recession
- lead the way and demonstrate to the world that large-scale transformation can be achieved