brisbaneeconomicseriesissue three: may 2012property: the greenbuilding issue
foreword   Welcome to the third edition of the Brisbane Economic Series, a bi-monthlypublication providing vital insights ...
contents                                                                                                                  ...
contents                                                                                                                  ...
Green Square North Tower                                                                                                  ...
site and designed to take advantage of that orientation,it will take less to cool it, make better use of natural          ...
512 Wickham St                                                                                                            ...
Cromwell Property Group’s Energex House                                                                               It i...
123 Albert St                                                                    Ca rbon Ta x                             ...
There are undoubtedly benefits to both the landlordand the tenant in embracing the green building initiative.For landlords...
75 Denham St                                                                                To try and gain an upper edge ...
75 Denham St, Before                                                                                         As new buildi...
One One One Eagle St © Cox Raynor Architects                                                                              ...
University of Queensland                                                                                   As the most bio...
Brisbane Central Business DistrictROMILLY MADEW                                   DAVID BAGGS              The use of sust...
our counterpart in China to seek out opportunities for        technology, products and plant going into buildings, or     ...
dark colours heat reflective, now being added to roof               The production of renewable energy is a key           ...
transforming their own buildings.                                                                                         ...
123 Albert St{       Ian Klug is a Fellow of the Institute of Chartered Accountants in       Australia, Chairman of Brisba...
acknowledgmentsSPECIA L THANKSBrisbane Marketing is indebted to our special contributors for their generous involvementwit...
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Brisbane Economic Series Issue 3


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In this edition, key industry leaders Paul Day, Savills Australia, Brian Noble, Clayton Utz Brisbane, Richard Fairhead, Arup, Romilly Madew, Green Building Council of Australia and David Baggs, Ecospecifer discuss the commercial impact of green buildings, and the importance of research and development to ensure Australia maintains its status as an innovator in green building and construction.

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Brisbane Economic Series Issue 3

  1. 1. brisbaneeconomicseriesissue three: may 2012property: the greenbuilding issue
  2. 2. foreword Welcome to the third edition of the Brisbane Economic Series, a bi-monthlypublication providing vital insights into the city’s extensive business, investmentand growth opportunities. Introducing green initiatives into the property industry is the focus of this editionand we are fortunate to hear the thoughts and opinions of some of Brisbane’s keybusiness leaders. As Australia’s New World City, Brisbane is at the forefront of green buildingdesign. Since 2010 six office buildings in Brisbane have been certified with a 6 StarGreen Rating and the demand for such space continues to grow. Within Brisbane’s CBD and inner-city, more than one million square metres ofquality office space has been added over the past decade taking the current stockto 3.2 million square metres. Of the 100,000 square metres under constructionthat will be added this year, more than 70 per cent is already pre-committed. Such phenomenal demand is a great thing for Brisbane’s economy. Greenbuilding construction stimulates the need for locally sourced green buildingmaterials; while an increase in these buildings attracts more and more investors. My vision is for Brisbane to become Australia’s cleanest and greenest city and acarbon neutral destination by 2026. Brisbane City Council has encouraged green leadership in the property marketby sponsoring the development of a number of green star rating tools. Therestoration of Brisbane City Hall is also reflective of my commitment in this area.Improvements to this heritage building will include many sustainable initiatives toensure it achieves a Green Star Rating when it officially reopens early 2013. Now more than ever, green leadership in the property industry must beencouraged for its direct contribution to the economic development of this city.Gr aham QuirkLord M ayor of Brisba ne2 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  3. 3. contents Issue three 05 08 11 A revolution led by government Ethical investment delivers Green building design – and propelled by corporate greater returns as a two-tier delivering economic benefits conscience puts Brisbane at the market emerges. to both the building owner forefront of green building. and society as a whole. Paul Day Brian Noble Richard Fairhe ad He a d of Re se a rch QLD, Pa rtner, Cl ay ton Ut z Brisba ne Queensl a nd E x isting Buildings Sav ill s Austr a lia Le a der, A rup3 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y A C K N O W L E D G E M E N T S // C R E D I T S CONTENTS
  4. 4. contents Issue three 14 15 15 Ian Klug, Chair, Brisbane “The Green Star environmental “Local manufacturers are Marketing and Lord Mayor’s rating system has had a increasingly realising this is Economic Development dramatic impact on the property a ‘window of opportunity’ for Steering Committee and construction industry.” them.” interviews Romilly Madew and Romilly Made w David Baggs David Baggs on the topic of Chief E x ecuti v e Officer, Green Technical Director, Ecospecifer trends in the Green Building Building Council of Austr a lia industry. Ian klug Ch a ir, Brisba ne M a rk e ting4 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y A C K N O W L E D G E M E N T S // C R E D I T S CONTENTS
  5. 5. Green Square North Tower It is very unlikely that a new building in Brisbane today would be planned without having regard to embracing some of the principles of sustainable development. Brisbane has many green buildings and they areA revolution led by government and increasing in number every year. It is very unlikely that a new building in Brisbane today would be planned withoutpropelled by corporate conscience having regard to embracing some of the principles ofputs Brisbane at the forefront of sustainable development. This consideration is heightened further for developersgreen building. of commercial office buildings. These giant edifices are major contributors to the consumption of vast quantitiesPaul Day of energy, and by extension, the production of carbonHe a d of Re se a rch QLD, Sav ill s Austr a lia based gas emissions. The facts have been put forward by many organisations, not the least by the front-running Green Building Council of Australia (GBCA), but many people still don’t understand the full impact which emanates from commercial buildings. It’s not just the energy and water that these buildings consume daily, it goes much further, right down to the planning stage so that if the building is oriented on the Santos Place5 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  6. 6. site and designed to take advantage of that orientation,it will take less to cool it, make better use of natural While there are many greenlight and take less to maintain it when it is constructed.Use of recycled materials during the construction decisions in the construction process,phase can make a difference and many other new it is ultimately the operation of thematerials can be products of less intensive and energyusing manufacture. building that should receive the While there are many green decisions in the main process, it is ultimately the operationof the building which should receive the main focus.Efficient operation is assisted by a range of inclusionssuch as zoned low-energy lighting, zoned air-conditioning, and use of chilled beams as an alternativeto normal air conditioning, recycled or ‘black’ water foruse in toilets, window screening and the list goes on. All these initiatives come with a cost. To deliver a5 Star Green Star commercial office building, thereare estimates of a 3%-8% cost impost on normalconstruction costs and for a 6 Star Green Star thatadded cost rises to 8%-11% or more. These arebelieved to be conservative but can still defeat thefeasibility of a project. Cromwell Property Group’s Energex HouseFIGURE 1: Bri sba ne office a nnua l ne t a b s orp tion (s q m) However, the cost of not engaging in green building principles can be even greater. A- GRADE VERSUS B- GRADE JAN-06 TO JAN-12 Developers run the risk of a longer lease up period and the possibility of tenants 200,000 negotiating lower rents on the basis of no official green accreditation. 150,000 What is clear is that the Property Council of Australia has shown leadership in incorporating a number of elements of sustainable development as well as Green Star 100,000 accreditation in their guide to Office Building Quality. While the Property Council does not 50,000 reveal the grading of buildings, the criteria are available for anyone to make their own assessment. 0 The question arises “Do tenants really care about the green issue when it comes down -50,000 to securing their accommodation?”-100,000 Perhaps five years ago it would not have been foremost in their minds but that is changing, particularly with the larger institutions. Led by government departments and-150,000 propelled by corporate conscience, large companies are specifying not only that their Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 accommodation should be Grade A quality but also that it should be 5 Star Green Star as a-Grade B-Grade a minimum and 4 star NABERS, so that their standards in accommodation match theirSource: Property Council of Australia, Savills Research expressed values.6 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  7. 7. 512 Wickham St { There is plenty of evidence to show that Grade A The provision of bicycle racks, lockers, showersoffice accommodation outperforms secondary office together with recycling of employees waste allowsaccommodation in terms of absorption as the chart above employees to make their own contribution whichshows. There has always been a ‘flight’ to quality office leads to greater staff satisfaction and ultimately better Paul Day spent 20 years in the banking industry, the lastaccommodation when new buildings enter the market productivity. 10 years of which he financed property investment andbut the Brisbane CBD and near city office markets have The new world city of Brisbane has shown it is a world development in south-east Queensland. He obtained hisadded an unprecedented 650,000 square metres of new leader with the number of 5 Star Green Star and 6 Star qualifications in property economics from the University of Technology in Brisbane, where he graduated with office space in the past five years of which around Green Star office buildings in both the CBD and near city His background in banking, real estate and more recently, his73% has been taken up, while in that same period, office markets constructed over the past five years. private involvement with property development, had providedoccupied space in the Grade B stock has actually declined The commercial impact is – if it is not green, it will not Paul with a good understanding of the property more than 40,000 square metres. be in favour. In his current role of research and consultancy, Paul is the author of a range of research papers on the property markets The message is clear; tenants are targeting the green in Queensland and has successfully completed more thanbuildings in ever increasing numbers and only reverting 100 consultancies on property related projects for governmentto the lower quality stock when contiguous space starts departments and private firms. Paul is the past Chair of theto become scarce. Green buildings offer more than just Research Committee with the Property Council of Australia, Queensland Division and currently sits on their Commercial The benefit of green buildings is not just about sustainable developments, they also and Corporate Real Estate Committee and Sunshine Coastinstitutions making a statement of their support for Committee, along with membership on the newly formedsustainable development, in fact, these days keeping offer employees the opportunity to Research Roundtable.employees happy is a prime concern for companies. participate in a healthy lifestyle,Green buildings offer more than just sustainabledevelopments, they also offer employees the opportunity respectful of the participate in a healthy lifestyle, respectful of theenvironment.7 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  8. 8. Cromwell Property Group’s Energex House It is possible to identify a two- tier market emerging, as green buildings are increasingly able to attract higher premiums than their older counterparts.Ethical investment delivers greater In recent years one of the major changes in the Green Star-certified, with a wide range of building types property industry has been the move towards ‘green from schools and hospitals to industrial facilities andreturns as a two-tier market emerges. building’, with increasing demands from corporations shopping centres achieving Green Star ratings. for more efficient and cost-effective premises. The 1 July 2012 sees the introduction of Tax Breaks for focus now is not only on the construction and design of Green Buildings, a $1 billion Federal program. EligibleBrian Noble buildings, but also how they are operated and occupied. businesses that invest in improving the energy efficiencyPa rtner, Cl ay ton Ut z Brisba ne The industry expects mandatory disclosure requirements of their premises will be able to apply for a bonus tax to begin to be enforced more strictly, and the rising cost deduction of 50% of the cost of eligible assets or capital of carbon will inevitably act as an incentive to businesses works. to examine the use of different materials in order to make The 2008 industry survey by BCI Australia, for the more cost-effective choices. Green Building Market Reports, confirmed the increasing Indeed it is possible to identify a two-tier market level of green building activity. The report noted that: emerging, as green buildings are increasingly able to • 85% of Australian architects, contractors and attract higher premiums than their older counterparts, building owners had been involved in green building; with the latter suffering from lower rental rates and • 66% of Australian construction and property higher long-term risks for tenants and landlords, with professionals described their firm’s commitment to greater potential capital expenditure requirements in the green building as ‘high’ or ‘very high’. future further decreasing their value. Colliers have reported that a tenant survey of the Brisbane, Sydney and Melbourne CBD markets found Current De v elopment s that the two highest ranking predicted future building In February 2012 the Green Building Council of requirements were more effective air-conditioning and Australia (GBCA) issued it’s 400th Green Star rating. building environmental performance. More than 18% of Australia’s CBD office space is now8 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  9. 9. 123 Albert St Ca rbon Ta x and energy-efficiency benchmarks. Older, less energy The introduction of a carbon tax will evidently have a efficient buildings with higher energy costs will face significant commercial impact, with the GBCA stating lower demand from tenants. that the scheme will add value to energy efficient homes • An increase in rents is likely for energy-efficient and encourage consumers to seek out greener buildings buildings in response to higher demand from which will offer advantages to them both in terms of tenants, who will be willing to pay more to secure costs and improving brand image and marketability. The such buildings with lower operating costs. Buildings with Green Star or NABERS Energy ratings are currently delivering greater returns than those buildings Commercia l Benefit s of Green without ratings, and the GBCA expects this trend to Buildings accelerate with the introduction of the carbon tax. The carbon-pricing legislation will undoubtedly impact 1. Opportunity to build brand recognition and upon different groups involved in construction and improve public image industry: 2. Lower energy and operating costs • Increasing prices will drive the property and 3. Attract government and other large corporate construction industry to demand higher standards tenants of efficiency and greener materials in an effort to 4. Higher tenant retention reduce costs. 5. Healthier work environments • Tenants will naturally look to mitigate rising energy 6. Higher rent returns costs by seeking buildings constructed and 7. Increased interest by Ethical Investment funds. maintained to meet best practice environmentalIncreasing prices will drive theproperty and construction industryto demand higher standards ofefficiency and greener materials inan effort to reduce costs. 123 Albert St9 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  10. 10. There are undoubtedly benefits to both the landlordand the tenant in embracing the green building initiative.For landlords, greener buildings have been shownto have a higher net worth, lower levels of vacancyand are therefore more marketable. For tenants,studies have shown links between sustainable greenerworking environments and higher employee happinessand satisfaction levels, resulting in lower levels of Studies have shown links betweenabsenteeism. sustainable greener working In the Green Council of Australia’s 2008 Report , themajority of investors surveyed stated that they would environments and higher employeepay more for a Green Star Building, clear evidence of happiness and satisfactionthe improved marketability of such buildings. They areeasier to sell and lease, which reduces vacancy times levels, resulting in lower levels ofand hence income loss, meaning that a green building absenteeism.offers a significant competitive advantage. Whilst a rentalpremium is not yet proven in all cases, taking a longerterm view the industry expectation is that rental growth,tenant retention and operating cost savings will becomethe main factors in boosting the market value of GreenStar buildings.{ Brian Noble has been voted by his peers as one of Australia’s Best Lawyers in Real Property (2009, 2010, 2011). Brian has specialised in commercial property transactions for nearly 30 years. He has a reputation for bringing both a practical and innovative approach to his advice. His work includes some of the most significant commercial transactions in Queensland and agribusiness transactions in Australia. Brian’s experience includes property leasing and management and the acquisition, development and disposal of commercial property. He has advised on residential and commercial developments, state land tenure issues and agribusiness transactions. Brian’s clients include Australia’s largest local authority, the Queensland State Government and the Westfield Group. Cromwell Property Group’s Energex House10 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  11. 11. 75 Denham St To try and gain an upper edge on the competition, the use of green design principles are now becoming common practice. Today’s competitive real estate market meansGreen building design – delivering owners are continually dealing with tenant demands foreconomic benefits to both the better performance and upgrades to their space. Other aspects under consideration are the introductions of newbuilding owner and society as premium and A grade office space, mandatory disclosure, increase in energy costs, government policies demandinga whole. high performing buildings and the forthcoming carbon tax. These are just a number of greening factorsRichard Fairhe ad influencing how owners design and build new buildingsQueensl a nd E x isting Buildings Le a der, or retrofit existing buildings in the current commercialA rup marketplace. To try and gain an upper edge on the competition, the use of green design principles are now becoming common practice. But is there a benefit to this outside of a particular rating? The short answer is yes. Sustainable design concepts are one factor ensuring a project can reach specific sustainable targets – this is only one of the aspects of a truly sustainable approach. If a design team can utilise an integrated team approach, incorporate life cycle costing and analysis into the product, the end result is one which not only provides sustainable design, but rather a building which can operate for a number of years efficiently.11 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  12. 12. 75 Denham St, Before As new buildings enter the commercial market, more pressure is put on the existing building stock as they require maintenance upgrades or are approaching the end of their original design life. Designers and owners can revitalise properties to offer similar amenities and design principles to those offered by new building stock. New buildings incorporating green or sustainable Recent work by Arup has assisted in transformingdesign are now common in the commercial marketplace. older building stock within the Brisbane marketplaceIndustry research shows, buildings with higher industry upgrading both the visual and performance aspects.recognised ratings attract higher lease rates and resale These works bring the buildings in line with industryvalues compared to those with low or no rating. From an requirements to meet market demands.economic perspective owners have made the conscience 20 Wharf Street was originally a small office buildingchoice to showcase their properties utilising a green surrounded by larger more prominent buildings andapproach. through a major redesign process is now a large Through work with organisations such as the Property data centre. This is a great example of a propertyCouncil of Australia and other industry members, reconfigured or ‘re-lifed’ to maximise the potential ofArup has focused our efforts and expertise in the the site. The owner can now realise full utilisation of theexisting building marketplace. In recent years and in building and a constant revenue stream.collaboration with key industry bodies, we have published 295 Ann Street is uniquely positioned in the heart of thea number of guidelines and online assessment tools on CBD, but due to its age (built circa 1968) was operatingexisting buildings focusing on how to make the most of a inefficiently and unable to attract key government tenants.tired asset . The property owners transformed the building through a As new buildings enter the commercial market, more repositioning initiative and upgraded the services, facade,pressure is put on the existing building stock as they lobby, and street presence. Vitally, these works haverequire maintenance upgrades or are approaching the allowed the owners to attract an anchor tenant whichend of their original design life. Designers and owners now is occupying a modernised building, while achievingcan revitalise properties to offer similar amenities and energy savings and high occupancy levels. 75 Denham St, Afterdesign principles to those offered by new building stock.12 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  13. 13. One One One Eagle St © Cox Raynor Architects Arup realises the changing global pressures we are facing with respect to increasing population density, diminishing natural resources and rapid climatic change. Clearly, all three are linked in a very simple manner; more humans = more use of resources = more GHG emissions = more climatic change. These thee interlinked concepts have been captured in Arup’s vision for moving towards an ecological age of civilisation. The key objectives of achieving this vision are defined by three measurable goals by 2050, which are: 1 – CO2 emissions reduction of 80%New premium and A grade office 2 – Ecological footprint reduction to 1.4 global ha/space, mandatory disclosure, person 3 - Human Development Index increase of 0.8-1.0increase in energy costs, Our work in the existing building arena allows Arupgovernment policies demanding to work towards achieving the goals set out within the Ecological Age, which has recently been incorporated intohigher performing buildings and our Australasia Region Strategy.the forthcoming carbon tax... arejust a number of greening factors {influencing how owners designand build Richard Fairhead has dedicated his career – which spans 15 years in both Canada and Australia – specialising in building envelope for both new and existing buildings. Prior to joining Arup in 2008, Richard was a partner in a building envelope consulting firm based in Canada which focused on the exterior construction of buildings in both new and retrofit, ranging from single storey to 60 storey buildings including commercial, industrial and residential. Considered an industry specialist in his field, he has supplied expert witness testimony on various building envelope failures cases.13 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  14. 14. University of Queensland As the most biologically diverse capital in Australia, research and development communities.Ian Klug, Chair, Brisbane Brisbane is a green city with a clear commitment to its For this issue, I talked to two of the key industry environment. Guided by sustainably-focused governments players about trends in the green building sector andMarketing interviews Romilly and world-renowned universities and research Australia’s competitive advantage in the emerging globalMadew, Chief Executive, Green institutions, Brisbane is evolving as a hotbed of innovation supply chain. and sustainability.Building Council of Australia, and Brisbane Marketing has the responsibility of driving Our reputation as a vibrant andDavid Baggs, Technical Director, long-term social and economic benefits to Brisbane and sustainable centre of innovation the greater Brisbane region. As an organisation we areEcospecifer on the topic of trends in proud to collaborate with industry leaders, such as those and enterprise is attracting leading featured in this publication, to help deliver Brisbane’sthe Green Building industry. vision for a prosperous city through a diverse range of businesses who are embracing our economic development projects to attract investment and population growth, highly skilledIan Klug create jobs.Ch a ir, Brisba ne M a rk e ting Our reputation as a vibrant and sustainable centre of workforce, competitive costs and well- innovation and enterprise is attracting leading businesses respected research and development who are embracing our population growth, highly skilled workforce, competitive costs and well-respected communities.14 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  15. 15. Brisbane Central Business DistrictROMILLY MADEW DAVID BAGGS The use of sustainable materials in the of its steel mill at Port Kembla, and investigating certification’ platform has been created, giving certified IK building and construction industries in alternative energy sources to reduce the mill’s reliance products a significant market lead on typical non- Australia is increasingly important to project on the grid. In the concrete manufacturing industry, by- certified products. Manufacturers who understand this planning and execution. Where are the bulk of our products traditionally sent to landfill, such as fly ash and market potential (often imported from US or Europe) have construction materials sourced and what impact is slag, are now being used. And in the timber industry, responded by complying with these standards. the use of green building materials having on existing Australia stands out globally, in that almost our entire supply chains in Australia? commercial timber acreage is certified by either the China is now Australia’s largest export Forest Stewardship Council (FSC) or Australian Forestry IK market as well as our largest source of The majority of the materials used in green Standard (AFS). imports. What impact has China’s status RM buildings are made in Australia. Heavy as our largest two-way trading partner had on the Australian building and construction industries? DB materials such as concrete, timber and steel After consideration of basic high mass are readily available in Australia, and are expensive to structural materials like concrete, aggregate, import. The Green Star environmental rating system for brick, block and some cement and steel, and The Chinese Government sees clean energy buildings has had a dramatic impact on the property and acknowledging the prominence of China as a supplier across most sectors, Australian supply chains typically RM as China’s “great economic opportunity”, which is why clean energy and green buildings construction industry over the last decade. The majority of Australian-supplied manufacturers have implemented sourced from a wide range of local, regional (SE Asia, are central planks in its latest five year plan. This is a processes to ‘green up’ their production chains and final Korea and Taiwan), Middle Eastern, European and great economic opportunity not just for China, but for products. The Australian Steel Institute, for example, has North American suppliers. The only requirements most Australia too. We know that China has rapidly become introduced an Environmental Sustainability Charter, and products had to meet on entry were fit for purpose a leader in developing and exporting green technology members are committed to reducing their environmental standards. However, as governments, property trusts such as photovoltaics and solar panels and it is also impact. BlueScope Steel, one of the signatories of the and major building owners started demanding Green driving a determined green building program. The Green charter, is working to reduce the energy consumption Star performance of buildings; a new ‘green product Building Council of Australia is working closely with 15 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  16. 16. our counterpart in China to seek out opportunities for technology, products and plant going into buildings, or Australian businesses with expertise in green building. the policies and incentives which provide the stimulusIt’s clear that China has the scale, It’s clear that China has the scale, and Australia the for their development. There are green roof solutionsand Australia the capabilities. We capabilities. We need to scale up our capabilities, and the from Europe and Scandinavia which are being slowly Chinese need to adapt their capabilities to their scale. We implemented across Australia, which can help reduceneed to scale up our capabilities, have the micro, and they have the macro. and slow stormwater run-off, provide better buildingand the Chinese need to adapt insulation, and improve local biodiversity. There are This newfound ‘green product certification’ DB lighting and energy efficiency solutions from thetheir capabilities to their scale. platform has given local manufacturers a Asia Pacific which are being introduced to Australian head start on emerging market suppliers. buildings, which can reduce energy demand, costs Countries like China, and those in SE Asia generally, and related greenhouse gas emissions. But equally as struggle to understand and implement the rigour and important are the ‘green door policies’ – or expedited Cromwell Property Group’s Energex House transparency required by third party audited green planning procedures, which are being rolled out across product certification. Even local suppliers sourcing many US states, which provide a massive incentive for from these countries, often struggle to source the developers to make their project as green as possible required detail information to meet certification, in order to gain development approval in less time. typically having to fund the certification themselves Australia needs a balance of carrot (financial and non- because ‘the factory doesn’t understand the need’, and financial incentives such as green door policies) and stick sometimes even employing local consultants to travel (contemporary regulation and mandatory disclosure) in to the factories to source the information themselves. order to improve the quality of development and building Interestingly, European manufacturers often provide the stock. same feedback to local suppliers seemingly believing that ‘being a European supplier should be enough’. Without question the challenge is on to develop Neither end of the spectrum understands the green building market generally yet. Local manufacturers are DB raw materials sourced from renewable and recycled dematerialised low impact sources increasingly realising this is a ‘window of opportunity’ that are de-coupled from the carbon cycle (low carbon) or for them. As the green building sector storms on around are carbon sinks (carbon positive). The sorts of products the globe and goes from strength to strength around that will meet these criteria are those sourced from bio- Australia, it is one that won’t last too long. mimicry processes (learning low impact solutions from nature), biologically derived polymers (low impact and Australia is a recognised innovator in IK non-food source supply chain), nanotechnology (subject green building and construction; going to proper health studies), emerging new renewable forward which countries do you think will energy sources and building integrated energy generation be leading providers of innovative solutions in this technologies. The countries that these technologies are space and therefore offer trading partnerships for emerging from typically are Europe and the USA although Australia? What are some recent examples of technical Japan, Taiwan and Korea are also in the mix. Recent innovations that you consider have potential for examples of these technologies include: widespread adoption here in the Australian market? • Weldable plastic roof membranes embedded with ‘ synthetic photosynthesis’ photovoltaic panels that It’s an interesting question, and it depends work in indirect light and semi-shade – from USA; RM whether ‘innovative solutions’ means the • Microspherical ceramic powder additives that make16 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  17. 17. dark colours heat reflective, now being added to roof The production of renewable energy is a key coatings, driveway and paving paints – from USA; • Interlocking cyclone resistant roofing tile system, RM development area which private and public sectors alike are researching, in order that integrated with solar electrical panels and solar buildings might start to have a positive impact on their hot water system - from a SE QLD start-up surroundings – producing energy, capturing and recycling company (Tractile); water, harvesting produce and recycling materials, • New generation LED lights that use a waste by- improving biodiversity – rather than just ‘minimising the product from aluminium processing to deliver ultra- negative’ impacts. If we can help buildings produce more low energy lights as bright as halogens- from Taiwan; and more energy – through solar panels, wind turbines, • Solar reflective pre-coating for steel that can be regenerative lift drives and many other initiatives rolled and pressed thereby enabling energy efficient being developed – we can start to take more and more steel roof sheeting – developed in QLD. buildings ‘off-grid’, especially when coupled with new levels of energy efficiency and demand reduction. There Research and development is critical to the is also a great deal of research underway to examine the IK future of the green building industry, Which extremes of the Australian climate, and how buildings R&D initiatives are having the greatest can best adapt to hot, dry, cold or humid conditions. impact on the Australian industry at the present time Shading methods, facade technology, double skin and what else do you think could be done to ensure layers, solar orientation and material choice is all being Australia maintains its status as an innovator in green investigated to see how buildings can suit and adapt to building and construction? their environment, and to ensure Australia maintains its ‘innovator’ status. University of Queensland While we are good at innovation, sometimes it DB seems to me we are not doing enough R&D in Australia at the moment compared to Europe and even the USA, let alone developing a culture here that supports the growth of innovation through to markets. Programs like the QLD BITI Grants that supported the development and commercialisation of the GlobalThere is also a great deal of GreenTag certification system are rare, and even thoughresearch underway to examine the Federal Governments Commercialisation Grants exist they are not easy to win. We need to re-invigorate R&Dthe extremes of the Australian within the SME sector.climate, and how buildings can We are performing highly in the water industry with some of the world’s most innovative low impactbest adapt to hot, dry, cold or water purification technologies in the world. Australianhumid conditions. Innovative Systems (AIS) is another Brisbane world leader, this time in water disinfection. The AIS Eco- Chlor self-cleaning water chlorinators never need any chemicals or added chlorine, developing the needed Bond University Mirvac School of Sustainable Development chemical components to sanitise water from the17 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  18. 18. transforming their own buildings. In Queensland, the State Department of Public Works’ has driven the uptake of green buildings and expanded the building industry’s knowledge and experience. DPW had three 6 Star Green Star – Office Design v2 projects in locations spanning from the tropical far north to the suburbs of Brisbane. Queensland also has a number of other ‘firsts’ led by government, including Green Star- rated schools and hospitals. Brisbane City Council is also leading by example – having sponsored the development of a number of Green Star rating tools, and registered the redevelopment of the Brisbane City Hall as a ‘lighthouse’ example of green leadership. Since governments occupy such a large percentage of commercial buildings at federal, state and local Cromwell Property Group’s Energex House level, their leadership is essential in specifying efficient, productive and healthy space in their accommodation guidelines, and more sustainable choices in their procurement procedures.chemicals dissolved in the water itself, endlessly. systems within cities that offset the negative impacts by The biggest single thing governments can do DB Some time ago we realised that determining just what creating ‘net positive’ impacts rather than just reducingtechnologies meet sustainability criteria means we have impacts or creating ‘neutral’ solutions that can never lead is lead by example. The integration of greento understand and employ life cycle analysis (LCA). A to true sustainability. procurement policy and metrics (includingrealisation of the importance of LCA in the last 10 years both LCA and ‘beyond LCA’ measures) into their ownor so has seen Australia adopt LCA and develop local State & local governments are large purchasing policies in meaningful (not token) waylife cycle inventories (LCI) such as those produced bythe Building Products Innovation Council (BPIC) and the IK property owners and stakeholders in construction projects in Australia. How and committing to it is paramount. This will require re-training procurement staff so they understandAustralian Life Cycle Assessment Society (ALCAS). does government procurement policy impact on the sustainability, building, and product certification and One of the most important things Australia could green building industry here and should government rating systems and how they work with a focus ondo is to continue to be among the world leaders in the be taking the lead in retrofitting existing properties to embodied as well as operational impacts. NABERS isdevelopment of sustainable cities and communities. To meet NABERS standards? a good example of how operational outcomes cannotdo this we need to develop ‘sustainability metrics’, this be achieved without a focus on correctly researched,means we have to go ‘beyond LCA’. LCA is designed Leadership at all levels of government is specified and purchased products in combination withto measure negative environmental impacts. ‘BeyondLCA’ techniques use LCA but also consider things like RM essential if we are to transform our built environment. The Green Building Council appropriate design, correct delivery during construction and commissioning. Requiring NABERS for governmentsustainable forestry certification, local biodiversity of Australia has long advocated that governments buildings and government tenanted buildings would be(impacts and restoration) and social impacts to e.g. demonstrate visionary leadership by rating all the just one of the great outcomes from the implementationensure minimising carbon emissions doesn’t deliver buildings they own, develop or occupy with both Green of a government wide green procurement policy.unwanted impacts elsewhere in the supply chain. These Star and NABERS ratings. By communicating successes,Positive Development metrics will help us understand challenges and learnings with case studies, localand measure the holistic impacts of products and businesses can understand the value and importance of18 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  19. 19. 123 Albert St{ Ian Klug is a Fellow of the Institute of Chartered Accountants in Australia, Chairman of Brisbane Marketing and the Lord Mayor’s Economic Development Steering Committee. He is also a Director of the Aboriginal Centre for the Performing Arts and a Director of the Wide Bay Water Corporation where he also sits on the Audit and Risk Committee. Ian is also Chairman of Place Design Group. He is a former Partner of Pitcher Partners Chartered Accountants (for 19 years) and was previously{ Chairman of the Queensland Artworkers Alliance. Ian is also currently a member of the Lord Mayor’s Business Round Table. Since governments occupy such Romilly Madew leads Australia’s peak industry association a large percentage of commercial responsible for creating sustainable buildings and places for everyone. Romilly is an experienced green building, buildings at federal, state and local sustainable communities and cities advocate, both nationally and internationally. level, their leadership is essential Romilly chairs a number of influential task groups and steering committees on the built environment. These include: Board in specifying efficient, productive member of the World Green Building Council (WorldGBC) and the Chair of the WorldGBC International Rating Tools and healthy space in their Task group; Deputy Chair of the Australian Sustainable Built Environment Council (ASBEC) and Chair of ASBEC’s Cities accommodation guidelines. task group; Member of the Australian Government’s National Urban Policy Forum, and the State of Australian Cities indicators reference group; Member of the Australian Government’s Department of Sustainability, Environment, Water, Population and Communities Measuring Sustainability Roundtable; Member of the Australian Government’s Department of Climate Change and Energy Efficiency, Independent Expert Group on the development of the Climate Futures Report; Founder and steering committee member of the Built Environment Meets Parliament (BEMP) initiative – an annual conversation with government and industry at Parliament House.{ David Baggs is CEO and Technical Director of Ecospecifier, Global GreenTag® Program Director and President of ALCAS- the Australian Life Cycle Assessment Society. He is an award winning chartered architect, sustainability, energy-efficiency and eco-materials consultant with over 30 years experience in sustainable development and materials technology. Global GreenTag® is a world first, life cycle assessment based product rating and national Certification Mark that certifies some of the world’s largest manufacturers’ products.19 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
  20. 20. acknowledgmentsSPECIA L THANKSBrisbane Marketing is indebted to our special contributors for their generous involvementwith the Brisbane Economic Series, namely:Paul Day, Head of Research QLD, Savills Australia.Brian Noble, Partner, Clayton Utz Brisbane.Richard Fairhead, QLD Existing Buildings Leader, ARUP.Ian Klug, Chair, Brisbane Marketing.Romilly Madew, CEO, Green Building Council of Australia.David Baggs, Technical Director, Ecospecifer.IMAGE CREDITSEnergex House images: Cromwell Property Group123 Albert Street images: DEXUS Property group512 Wickham Street, Fortitude Valley images: Green Building Council of AustraliaGreen Square North Tower images: Green Building Council of AustraliaSantos Place images: Green Building Council of Australia75 Denham Street images: ArupOne One One Eagle Street image: © Cox Rayner ArchitectsMirvac School of Sustainable Development image: © Alan Jensen 8, Roy Harvey House, 157 Ann Street, Brisbane, Queensland, Australia, 4000PO Box 12260, George Street, Brisbane, Queensland, Australia, 4003Phone: +61 7 3006 6200 Fax: + 61 7 3006 6250 Email: a wholly owned subsidiary of Brisbane City Council and the city’s economic development agency, BrisbaneMarketing plays a key role in the ongoing evolution and success of our city.We drive economic and social benefits to residents and business by profiling Brisbane globally as Australia’snew world city and as a destination for business investment, export, international students, conventions,tourism, major events, and CBD retail.PUBLISHED B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS
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