Benefits of retrofitting
Benefits of retrofitting include:
- Lower operating costs: One of the biggest benefits to reducing energy consumption in buildings is the reduction of energy bills.
- 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 – this could also be a factor in attracting new tenants.
- 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: 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: A retrofitted building will meet the energy efficiency and environmental performance demands of the future. Many government departments already demand minimum levels of energy and environmental performance from the office space they lease. Energy efficiency measures have also been introduced into the Building Code of Australia.
- Improving corporate image: Your commitment to energy efficiency and sustainability can have corporate image benefits. Organisations are increasingly seeking these qualities in the buildings they occupy and in the companies they deal with.
- Making the building more attractive to investors: If a building is efficient, has minimal running costs, attracts and retains quality tenants and is well-placed to comply with the market demands of the future, it will be more attractive to investors.
The success of the 1200 Buildings program benefits the City of Melbourne. The 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.