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News release


Third annual sustainability survey finds companies are considering Green Building and Energy ratings in making leasing decisions

Findings highlight importance of Federal Government’s proposed Mandatory Disclosure scheme for owners of commercial office buildings, expected to be introduced in 6 months time

SYDNEY, 1 DECEMBER 2009 – A new survey of Corporate Real Estate (CRE) executives, whose companies drive demand for office space worldwide, has found a significant  89 percent consider sustainability criteria in making leasing decisions, and 90% of respondents consider energy labels (such as NABERS Energy) in administering their portfolios. 
Jones Lang LaSalle’s Australian CEO Stephen Conry said the results of the 2009 CoreNet Global and Jones Lang LaSalle sustainability survey highlighted that CRE executives will continue to utilise green building certifications and energy labels in their decision making.
“This is an important prompt for owners and landlords of commercial buildings in Australia, particularly with the onset of the Federal Government’s Mandatory Disclosure of Commercial Building Energy Efficiency legislation, which is expected to take effect in the second half of 2010.
“This legislation will add a whole new level of transparency in the commercial building market, by requiring disclosure of the greenhouse performance of buildings over 2000 sqm upon lease or sale.
“This mandated level of transparency is something we haven’t seen before in the Australian commercial market and will enable tenants and investors to see at a glance the energy ratings of buildings, in the same way consumers currently assess the star energy efficiency ratings on household appliances.
“This combination of interest from tenants, backed by government mandating the disclosure of the energy efficiency of buildings through NABERS Energy ratings has the potential to fundamentally shift the property market in Australia. Up until now, tenants trying to make an informed buying decision have had to deal with incomplete information available to them. Mandatory disclosure will now allow them to compare buildings on a like for like basis.
“Even if they are not willing to pay more for higher rated space, our research shows that they will consider it a tie breaker factor or at the very least, a leverage point to negotiate a better deal, especially with the balance of power being in favour of tenants in the current market.
“Building owners and those looking to lease or sub-lease space should be preparing now for the expected introduction of the scheme in just over 6 months time and have strategies in place so they can report on the energy performance of their buildings.
“NABERS Energy ratings, especially the initial rating can take some time to prepare, and many owners may be caught short as they are unaware that 12 months worth of historical building performance information is required to conduct a rating,” Mr Conry said.
Australian Head of Energy and Sustainability Services at Jones Lang LaSalle, Anita Mitchell said the 2009 survey found that sustainability was a critical business issue today for 70 percent of respondents.
“This compares to 69% of respondents in last year’s survey, which indicates that companies are continuing to focus on sustainability despite the tighter economic environment,” Ms Mitchell said.
Further key findings from the CoreNet Global and Jones Lang LaSalle 2009 sustainability survey include:
• Sustainability is a critical business issue today for 70% of respondents and 89% consider sustainability criteria in their location decisions. In 2008 these figures were 69% and 81% respectively.
• Energy labels are considered by 90% of respondents administering their portfolio
• 74% say they are willing to pay a premium to retrofit space that they own for sustainability criteria
• 21% would only pay more rent for sustainable space if offset by lower operating costs, while 8% expect to pay less and 34% the same, the remaining 37% would be willing to pay a 1-10% premium.
• 60% are adopting workplace strategies to meet sustainability goals while reducing overall occupancy costs
The global survey of 231 corporate real estate executives was conducted in September and October 2009.  A copy of the summary report is available an Jones Lang LaSalle’s web site at
About CoreNet Global
CoreNet Global is the preeminent organization for Real Estate and Workplace professionals worldwide. As the leading professional association for the corporate real estate industry, we represent 6,500 members based in 45 chapters in major cities globally.  We are the only association to convene the entire industry across the supply and demand sides, including the corporate occupier, outsourced service partner, and economic development sectors. The CoreNet Global mission is to serve as a dynamic, fully developed network of professionals who create strategic value for their enterprises.  For more information on CoreNet Global programs, education, research, professional development and membership, please visit