EXPLORE THE CHALLENGE

What’s driving change in commercial buildings

Understanding where energy is used and why it matters.

Commercial buildings are among Australia's largest energy users...

Source: Australian Energy Statistics 2024, Australian Energy Update 2024

...and energy costs are rising.

With businesses increasingly focused on reducing overheads, improving a building’s performance isn’t just an efficiency measure, it can be a smart strategy. Energy-efficient upgrades can lower operating costs and help position buildings more competitively in the market.

While new buildings in Australia are generally designed to meet modern energy efficiency standards, many older existing buildings consume significantly more energy than necessary.

Australia’s are getting more energy efficient. The average amount of electricity and gas required per square metre has fallen by around 18% and 16% since 2012, respectively.

One driver of this improvement has been the higher energy efficiency of new buildings which tend to have more efficient equipment and improved thermal performance, but upgrades to existing buildings through steps like the replacement of inefficient lighting have also played an important role. Better access to advice and ratings has also helped: offices with base building energy ratings under the NABERS program have reduced energy intensity by around 40%.³

Source: DCCEEW 2022, Commercial Building Baseline Study 2022

For tenants, lower energy bills are a clear benefit — and increasingly, businesses are choosing spaces that align with their net zero objectives.⁴ There’s also growing evidence that energy-efficient buildings enhance tenant appeal and command stronger rental outcomes, particularly in the office sector.⁵

For commercial building owners, energy efficiency can help preserve and enhance the long-term capital value of the asset in a market increasingly driven by sustainability benchmarks such as and regulatory frameworks like the program.

Tony Vanstone (Superior Food Services), Jake Bagatella (Corval), and Michael Hua (Corval) explore how a strong tenant–landlord partnership is driving energy efficiency improvements at the Wingfield industrial site, SA. Watch next video

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