Commercial Building Disclosure Program updates

The Australian government this week announced important changes to the Commercial Building Disclosure Program (CBD). From the 01 July 2017, the mandatory disclosure threshold on commercial office buildings will reduce from 2000 square metres to 1000 square metres.

This means that if you plan on selling a commercial property or have any tenancies coming up for lease over 1000 square metres post 01 July 2017, you will need a valid Building Energy Efficiency Certificate (BEEC).

This change has been implemented to inform potential buyers and tenants of the building energy costs. The BEEC comprises of two assessments, the National Australian Built Environment Rating System (NABERS) which provides you with an energy star rating for the building and an assessment of the energy efficiency of the tenancy lighting which is called a Tenancy Lighting Assessment (TLA). The BEEC rating lasts up to 1 year, however the government has decided to increase the validity of the TLA assessment from the 01 September 2016 to 1-5 years, reducing the burden on owners having to re-assess the TLA component within the BEEC assessment.

Whilst maintaining a valid BEEC is not required by the CBD program, maintaining a valid NABERS rating makes the process of applying for a BEEC significantly easier should a mandatory disclosure event happen (i.e. sale, lease or sublease of a property of 1000 square metres post 01 July 2017).

For commercial property, a NABERS rating measures building performance on a scale from zero to six stars. Buildings are rated on their energy, water or waste efficiency, or indoor environment quality. A rating of zero stars means the building is performing well below average to other buildings, ordering cialis online forum while a rating of six stars means the building is market leading, with half the greenhouse gas emissions or water use of a five-star building.

NABER rating

Having a current NABERS rating will provide many benefits such as;

  • Helping identify energy savings of up to 20-40%
  • Buildings with a 1 to 3 star rating will gain cost-effective opportunities to improve
  • Reduces energy and operational costs
  • Attracts higher commercial property valuations
  • Gives your building a measurable energy rating
  • Can increase rental income if you achieve a positive rating
  • Increases employee productivity and work environment
  • Increases the level of occupant satisfaction and comfort within a building
  • Can help landlords meet tenant expectations for greener buildings
  • Marketing your building or office as NABERS rated; and
  • Allowing an easier application of a BEEC certificate should you need to sell, or lease your property post 01 July 2017

What this means for commercial property owners;

  • If you plan on selling or have any tenancy leases coming up for lease over 1000 square metres from 01 July 2017, you will require a valid BEEC rating.
  • The documentation required from the building owner / manager for a NABER rating is at least over a 12 month operating period, therefore if you are affected by the new changes to the CBD program, it would be a good idea to start assembling your records from 01 July 2016.

For more information on the changes you can visit