Brisbane Economic Series Issue 3

brisbaneeconomic seriesissue three: may 2012 property: the green building issue

C O N T E N T S 2 B R I S B A NE EC O N O MI C S E R IE S – I S S U E 3: p R O p E R T y

forewordWelcome to the third edition of the Brisbane Economic Series, a bi-monthly

publication providing vital insights into the city’s extensive business, investment and growth opportunities.

Introducing green initiatives into the property industry is the focus of this edition and we are fortunate to hear the thoughts and opinions of some of Brisbane’s key business leaders.

As Australia’s New World City, Brisbane is at the forefront of green building design. Since 2010 six office buildings in Brisbane have been certified with a 6 Star Green Rating and the demand for such space continues to grow.

Within Brisbane’s CBD and inner-city, more than one million square metres of quality office space has been added over the past decade taking the current stock to 3.2 million square metres. Of the 100,000 square metres under construction that 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. Green building construction stimulates the need for locally sourced green building materials; 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 a carbon neutral destination by 2026.

Brisbane City Council has encouraged green leadership in the property market by sponsoring the development of a number of green star rating tools. The restoration of Brisbane City Hall is also reflective of my commitment in this area. Improvements to this heritage building will include many sustainable initiatives to ensure it achieves a Green Star Rating when it officially reopens early 2013.

Now more than ever, green leadership in the property industry must be encouraged for its direct contribution to the economic development of this city.

Graham Quirk Lord mayor of BrisBane


contents Issue three

A C K N O W L E D G E ME N T S // C R E D I T S

05A revolution led by government and propelled by corporate conscience puts Brisbane at the forefront of green building.

PauL dayhead of research QLd, saviLL s austr aLia

11Green building design – delivering economic benefits to both the building owner and society as a whole.

richard fairhead QueensL and existinG BuiLdinGs Leader, aruP

08Ethical investment delivers greater returns as a two-tier market emerges.

Brian noBLe Partner, cL ay ton utz BrisBane


contents Issue three

A C K N O W L E D G E ME N T S // C R E D I T S

15“Local manufacturers are increasingly realising this is a ‘window of opportunity’ for them.”

david BaGGs technicaL director, ecosPecifer

15“The Green Star environmental rating system has had a dramatic impact on the property and construction industry.”

romiLLy madew chief executive officer, Green BuiLdinG counciL of austr aLia

14Ian Klug, Chair, Brisbane Marketing and Lord Mayor’s Economic Development Steering Committee interviews Romilly Madew and David Baggs on the topic of trends in the Green Building industry.

ian kLuGchair, BrisBane marketinG


Brisbane has many green buildings and they are increasing in number every year. 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.

This consideration is heightened further for developers of commercial office buildings. These giant edifices are major contributors to the consumption of vast quantities of energy, and by extension, the production of carbon 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

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.

A revolution led by government and propelled by corporate conscience puts Brisbane at the forefront of green building.

PauL day head of research QLd, saviLL s austr aLia

Santos Place

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 light and take less to maintain it when it is constructed. Use of recycled materials during the construction phase can make a difference and many other new materials can be products of less intensive and energy using manufacture.

While there are many green decisions in the construction process, it is ultimately the operation of the building which should receive the main focus. Efficient operation is assisted by a range of inclusions such as zoned low-energy lighting, zoned air-conditioning, and use of chilled beams as an alternative to normal air conditioning, recycled or ‘black’ water for use in toilets, window screening and the list goes on.

All these initiatives come with a cost. To deliver a 5 Star Green Star commercial office building, there are estimates of a 3%-8% cost impost on normal construction costs and for a 6 Star Green Star that added cost rises to 8%-11% or more. These are believed to be conservative but can still defeat the feasibility of a project.

However, the cost of not engaging in green building principles can be even greater. Developers run the risk of a longer lease up period and the possibility of tenants negotiating lower rents on the basis of no official green accreditation.

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 accreditation in their guide to Office Building Quality. While the property Council does not reveal the grading of buildings, the criteria are available for anyone to make their own assessment.

The question arises “Do tenants really care about the green issue when it comes down to securing their accommodation?”

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 propelled by corporate conscience, large companies are specifying not only that their accommodation should be Grade A quality but also that it should be 5 Star Green Star as a minimum and 4 star NABERS, so that their standards in accommodation match their expressed values.

While there are many green decisions in the construction process, it is ultimately the operation of the building that should receive the main focus.

Cromwell Property Group’s Energex House

fiGure 1: BrisBane office annuaL net aBsorPtion (sQ m) a-Gr ade versus B-Gr ade Jan-06 to Jan-12

Source: Property Council of Australia, Savills Research

200,000

150,000

100,000

50,000

-50,000

-100,000

-150,000Jan-06 Jan-07 Jan-08

a-Grade B-Grade

Jan-09 Jan-10 Jan-11 Jan-12

0


There is plenty of evidence to show that Grade A office accommodation outperforms secondary office accommodation in terms of absorption as the chart above shows. There has always been a ‘flight’ to quality office accommodation when new buildings enter the market but the Brisbane CBD and near city office markets have added an unprecedented 650,000 square metres of new green office space in the past five years of which around 73% has been taken up, while in that same period, occupied space in the Grade B stock has actually declined by more than 40,000 square metres.

The message is clear; tenants are targeting the green buildings in ever increasing numbers and only reverting to the lower quality stock when contiguous space starts to become scarce.

The benefit of green buildings is not just about institutions making a statement of their support for sustainable development, in fact, these days keeping employees happy is a prime concern for companies. Green buildings offer more than just sustainable developments, they also offer employees the opportunity to participate in a healthy lifestyle, respectful of the environment.

The provision of bicycle racks, lockers, showers together with recycling of employees waste allows employees to make their own contribution which leads to greater staff satisfaction and ultimately better productivity.

The new world city of Brisbane has shown it is a world leader with the number of 5 Star Green Star and 6 Star Green Star office buildings in both the CBD and near city office markets constructed over the past five years.

The commercial impact is – if it is not green, it will not be in favour.

Green buildings offer more than just sustainable developments, they also offer employees the opportunity to participate in a healthy lifestyle, respectful of the environment.

512 Wickham St

Paul day spent 20 years in the banking industry, the last 10 years of which he financed property investment and development in south-east Queensland. He obtained his qualifications in property economics from the University of Technology in Brisbane, where he graduated with distinction. His background in banking, real estate and more recently, his private involvement with property development, had provided Paul with a good understanding of the property market.

In his current role of research and consultancy, Paul is the author of a range of research papers on the property markets in Queensland and has successfully completed more than 100 consultancies on property related projects for government departments and private firms. Paul is the past Chair of the Research Committee with the Property Council of Australia, Queensland Division and currently sits on their Commercial and Corporate Real Estate Committee and Sunshine Coast Committee, along with membership on the newly formed Research Roundtable.

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In recent years one of the major changes in the property industry has been the move towards ‘green building’, with increasing demands from corporations for more efficient and cost-effective premises. The focus now is not only on the construction and design of buildings, but also how they are operated and occupied. The industry expects mandatory disclosure requirements to begin to be enforced more strictly, and the rising cost of carbon will inevitably act as an incentive to businesses to examine the use of different materials in order to make more cost-effective choices.

Indeed it is possible to identify a two-tier market emerging, as green buildings are increasingly able to attract higher premiums than their older counterparts, with the latter suffering from lower rental rates and higher long-term risks for tenants and landlords, with greater potential capital expenditure requirements in the future further decreasing their value.

current de veLoPments In February 2012 the Green Building Council of

Australia (GBCA) issued it’s 400th Green Star rating. More than 18% of Australia’s CBD office space is now

Green Star-certified, with a wide range of building types from schools and hospitals to industrial facilities and shopping centres achieving Green Star ratings.

1 July 2012 sees the introduction of Tax Breaks for Green Buildings, a $1 billion Federal program. Eligible businesses that invest in improving the energy efficiency of their premises will be able to apply for a bonus tax deduction of 50% of the cost of eligible assets or capital works.

The 2008 industry survey by BCI Australia, for the Green Building Market Reports, confirmed the increasing level of green building activity. The report noted that:

• 85% of Australian architects, contractors and building owners had been involved in green building;• 66% of Australian construction and property professionals described their firm’s commitment to green building as ‘high’ or ‘very high’.Colliers have reported that a tenant survey of the

Brisbane, Sydney and Melbourne CBD markets found that the two highest ranking predicted future building requirements were more effective air-conditioning and building environmental performance.

Ethical investment delivers greater returns as a two-tier market emerges.

Brian noBLe Partner, cL ay ton utz BrisBane

It is possible to identify a two-tier market emerging, as green buildings are increasingly able to attract higher premiums than their older counterparts.



carBon ta xThe introduction of a carbon tax will evidently have a

significant commercial impact, with the GBCA stating that the scheme will add value to energy efficient homes and encourage consumers to seek out greener buildings which will offer advantages to them both in terms of costs and improving brand image and marketability. The Buildings with Green Star or NABERS Energy ratings are currently delivering greater returns than those buildings without ratings, and the GBCA expects this trend to accelerate with the introduction of the carbon tax.

The carbon-pricing legislation will undoubtedly impact upon different groups involved in construction and industry:

• Increasing prices will drive the property and construction industry to demand higher standards of efficiency and greener materials in an effort to reduce costs. • Tenants will naturally look to mitigate rising energy costs by seeking buildings constructed and maintained to meet best practice environmental

and energy-efficiency benchmarks. Older, less energy efficient buildings with higher energy costs will face lower demand from tenants.

• An increase in rents is likely for energy-efficient buildings in response to higher demand from tenants, who will be willing to pay more to secure such buildings with lower operating costs.

Increasing prices will drive the property and construction industry to demand higher standards of efficiency and greener materials in an effort to reduce costs.

123 Albert St

123 Albert St

1. Opportunity to build brand recognition and improve public image

2. Lower energy and operating costs3. Attract government and other large corporate tenants4. Higher tenant retention5. Healthier work environments6. Higher rent returns7. Increased interest by Ethical Investment funds.

commerciaL Benefits of Green BuiLdinGs


There are undoubtedly benefits to both the landlord and the tenant in embracing the green building initiative. For landlords, greener buildings have been shown to have a higher net worth, lower levels of vacancy and are therefore more marketable. For tenants, studies have shown links between sustainable greener working environments and higher employee happiness and satisfaction levels, resulting in lower levels of absenteeism.

In the Green Council of Australia’s 2008 Report , the majority of investors surveyed stated that they would pay more for a Green Star Building, clear evidence of the improved marketability of such buildings. They are easier to sell and lease, which reduces vacancy times and hence income loss, meaning that a green building offers a significant competitive advantage. Whilst a rental premium is not yet proven in all cases, taking a longer term view the industry expectation is that rental growth, tenant retention and operating cost savings will become the main factors in boosting the market value of Green Star 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.

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Studies have shown links between sustainable greener working environments and higher employee happiness and satisfaction levels, resulting in lower levels of absenteeism.



Today’s competitive real estate market means owners are continually dealing with tenant demands for better performance and upgrades to their space. Other aspects under consideration are the introductions of new premium and A grade office space, mandatory disclosure, increase in energy costs, government policies demanding high performing buildings and the forthcoming carbon tax. These are just a number of greening factors influencing how owners design and build new buildings or retrofit existing buildings in the current commercial 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.

To try and gain an upper edge on the competition, the use of green design principles are now becoming common practice.

Green building design – delivering economic benefits to both the building owner and society as a whole.

richard fairhead QueensL and existinG BuiLdinGs Leader, aruP

75 Denham St


New buildings incorporating green or sustainable design are now common in the commercial marketplace. Industry research shows, buildings with higher industry recognised ratings attract higher lease rates and resale values compared to those with low or no rating. From an economic perspective owners have made the conscience choice to showcase their properties utilising a green approach.

Through work with organisations such as the property Council of Australia and other industry members, Arup has focused our efforts and expertise in the existing building marketplace. In recent years and in collaboration with key industry bodies, we have published a number of guidelines and online assessment tools on existing buildings focusing on how to make the most of a tired asset .

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.

Recent work by Arup has assisted in transforming older building stock within the Brisbane marketplace upgrading both the visual and performance aspects. These works bring the buildings in line with industry requirements to meet market demands.

20 Wharf Street was originally a small office building surrounded by larger more prominent buildings and through a major redesign process is now a large data centre. This is a great example of a property reconfigured or ‘re-lifed’ to maximise the potential of the site. The owner can now realise full utilisation of the building and a constant revenue stream.

295 Ann Street is uniquely positioned in the heart of the CBD, but due to its age (built circa 1968) was operating inefficiently and unable to attract key government tenants. The property owners transformed the building through a repositioning initiative and upgraded the services, facade, lobby, and street presence. Vitally, these works have allowed the owners to attract an anchor tenant which now is occupying a modernised building, while achieving energy savings and high occupancy levels.

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.

75 Denham St, Before

75 Denham St, After


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%2 – Ecological footprint reduction to 1.4 global ha/ person3 - Human Development Index increase of 0.8-1.0Our work in the existing building arena allows Arup

to work towards achieving the goals set out within the Ecological Age, which has recently been incorporated into our Australasia Region Strategy.

New premium and A grade office space, mandatory disclosure, increase in energy costs, government policies demanding higher performing buildings and the forthcoming carbon tax... are just a number of greening factors influencing how owners design and 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. {

One One One Eagle St © Cox Raynor Architects


As the most biologically diverse capital in Australia, Brisbane is a green city with a clear commitment to its environment. Guided by sustainably-focused governments and world-renowned universities and research institutions, Brisbane is evolving as a hotbed of innovation and sustainability.

Brisbane Marketing has the responsibility of driving long-term social and economic benefits to Brisbane and the greater Brisbane region. As an organisation we are proud to collaborate with industry leaders, such as those featured in this publication, to help deliver Brisbane’s vision for a prosperous city through a diverse range of economic development projects to attract investment and create jobs.

Our reputation as a vibrant and sustainable centre of innovation and enterprise is attracting leading businesses who are embracing our population growth, highly skilled workforce, competitive costs and well-respected

Our reputation as a vibrant and sustainable centre of innovation and enterprise is attracting leading businesses who are embracing our population growth, highly skilled workforce, competitive costs and well-respected research and development communities.

Ian Klug, Chair, Brisbane Marketing interviews Romilly Madew, Chief Executive, Green Building Council of Australia, and David Baggs, Technical Director, Ecospecifer on the topic of trends in the Green Building industry.

ian kLuG chair, BrisBane marketinG

research and development communities. For this issue, I talked to two of the key industry

players about trends in the green building sector and Australia’s competitive advantage in the emerging global supply chain.

University of Queensland


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the use of sustainable materials in the building and construction industries in australia is increasingly important to project

planning and execution. where are the bulk of our construction materials sourced and what impact is the use of green building materials having on existing supply chains in australia?

The majority of the materials used in green buildings are made in Australia. Heavy materials such as concrete, timber and steel

are readily available in Australia, and are expensive to import. The Green Star environmental rating system for buildings has had a dramatic impact on the property and construction industry over the last decade. The majority of Australian-supplied manufacturers have implemented processes to ‘green up’ their production chains and final products. The Australian Steel Institute, for example, has introduced an Environmental Sustainability Charter, and members are committed to reducing their environmental impact. BlueScope Steel, one of the signatories of the charter, is working to reduce the energy consumption

of its steel mill at port Kembla, and investigating alternative energy sources to reduce the mill’s reliance on the grid. In the concrete manufacturing industry, by-products traditionally sent to landfill, such as fly ash and slag, are now being used. And in the timber industry, Australia stands out globally, in that almost our entire commercial timber acreage is certified by either the Forest Stewardship Council (FSC) or Australian Forestry Standard (AFS).

After consideration of basic high mass structural materials like concrete, aggregate, brick, block and some cement and steel, and

acknowledging the prominence of China as a supplier across most sectors, Australian supply chains typically sourced from a wide range of local, regional (SE Asia, Korea and Taiwan), Middle Eastern, European and North American suppliers. The only requirements most products had to meet on entry were fit for purpose standards. However, as governments, property trusts and major building owners started demanding Green Star performance of buildings; a new ‘green product

certification’ platform has been created, giving certified products a significant market lead on typical non-certified products. Manufacturers who understand this market potential (often imported from US or Europe) have responded by complying with these standards.

china is now australia’s largest export market as well as our largest source of imports. what impact has china’s status

as our largest two-way trading partner had on the australian building and construction industries?

The Chinese Government sees clean energy as China’s “great economic opportunity”, which is why clean energy and green buildings

are central planks in its latest five year plan. This is a great economic opportunity not just for China, but for Australia too. We know that China has rapidly become a leader in developing and exporting green technology such as photovoltaics and solar panels and it is also driving a determined green building program. The Green Building Council of Australia is working closely with

Brisbane Central Business District

romiLLy madew david BaGGs


our counterpart in China to seek out opportunities for Australian businesses with expertise in green building. It’s clear that China has the scale, and Australia the capabilities. We need to scale up our capabilities, and the Chinese need to adapt their capabilities to their scale. We have the micro, and they have the macro.

This newfound ‘green product certification’ platform has given local manufacturers a head start on emerging market suppliers.

Countries like China, and those in SE Asia generally, struggle to understand and implement the rigour and transparency required by third party audited green product certification. Even local suppliers sourcing from these countries, often struggle to source the required detail information to meet certification, typically having to fund the certification themselves because ‘the factory doesn’t understand the need’, and sometimes even employing local consultants to travel to the factories to source the information themselves. Interestingly, European manufacturers often provide the same feedback to local suppliers seemingly believing that ‘being a European supplier should be enough’. Neither end of the spectrum understands the green building market generally yet. Local manufacturers are increasingly realising this is a ‘window of opportunity’ for them. As the green building sector storms on around the globe and goes from strength to strength around Australia, it is one that won’t last too long.

australia is a recognised innovator in green building and construction; going forward which countries do you think will

be leading providers of innovative solutions in this space and therefore offer trading partnerships for australia? what are some recent examples of technical innovations that you consider have potential for widespread adoption here in the australian market?

It’s an interesting question, and it depends whether ‘innovative solutions’ means the

technology, products and plant going into buildings, or the policies and incentives which provide the stimulus for their development. There are green roof solutions from Europe and Scandinavia which are being slowly implemented across Australia, which can help reduce and slow stormwater run-off, provide better building insulation, and improve local biodiversity. There are lighting and energy efficiency solutions from the Asia pacific which are being introduced to Australian buildings, which can reduce energy demand, costs and related greenhouse gas emissions. But equally as important are the ‘green door policies’ – or expedited planning procedures, which are being rolled out across many US states, which provide a massive incentive for developers to make their project as green as possible in order to gain development approval in less time. Australia needs a balance of carrot (financial and non-financial incentives such as green door policies) and stick (contemporary regulation and mandatory disclosure) in order to improve the quality of development and building stock.

Without question the challenge is on to develop raw materials sourced from renewable and recycled dematerialised low impact sources

that are de-coupled from the carbon cycle (low carbon) or are carbon sinks (carbon positive). The sorts of products that will meet these criteria are those sourced from bio-mimicry processes (learning low impact solutions from nature), biologically derived polymers (low impact and non-food source supply chain), nanotechnology (subject to proper health studies), emerging new renewable energy sources and building integrated energy generation technologies. The countries that these technologies are emerging from typically are Europe and the USA although Japan, Taiwan and Korea are also in the mix. Recent examples of these technologies include:

• Weldable plastic roof membranes embedded with ‘ synthetic photosynthesis’ photovoltaic panels that work in indirect light and semi-shade – from USA;• Microspherical ceramic powder additives that make rm

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It’s clear that China has the scale, and Australia the capabilities. We need to scale up our capabilities, and the Chinese need to adapt their capabilities to their scale.



dark colours heat reflective, now being added to roof coatings, driveway and paving paints – from USA;

• Interlocking cyclone resistant roofing tile system, integrated with solar electrical panels and solar hot water system - from a SE QLD start-up

company (Tractile);• New generation LED lights that use a waste by- product from aluminium processing to deliver ultra- low energy lights as bright as halogens- from Taiwan;• Solar reflective pre-coating for steel that can be rolled and pressed thereby enabling energy efficient steel roof sheeting – developed in QLD.

research and development is critical to the future of the green building industry, which r&d initiatives are having the greatest

impact on the australian industry at the present time and what else do you think could be done to ensure australia maintains its status as an innovator in green building and construction?

The production of renewable energy is a key development area which private and public sectors alike are researching, in order that

buildings might start to have a positive impact on their surroundings – producing energy, capturing and recycling water, harvesting produce and recycling materials, improving biodiversity – rather than just ‘minimising the negative’ impacts. If we can help buildings produce more and more energy – through solar panels, wind turbines, regenerative lift drives and many other initiatives being developed – we can start to take more and more buildings ‘off-grid’, especially when coupled with new levels of energy efficiency and demand reduction. There is also a great deal of research underway to examine the extremes of the Australian climate, and how buildings can best adapt to hot, dry, cold or humid conditions. Shading methods, facade technology, double skin layers, solar orientation and material choice is all being investigated to see how buildings can suit and adapt to their environment, and to ensure Australia maintains its ‘innovator’ status.

While we are good at innovation, sometimes it 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 Global GreenTag certification system are rare, and even though the Federal Governments Commercialisation Grants exist they are not easy to win. We need to re-invigorate R&D within the SME sector.

We are performing highly in the water industry with some of the world’s most innovative low impact water purification technologies in the world. Australian 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 chemical components to sanitise water from the

There is also a great deal of research underway to examine the extremes of the Australian climate, and how buildings can best adapt to hot, dry, cold or humid conditions.

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Bond University Mirvac School of Sustainable Development


chemicals dissolved in the water itself, endlessly.Some time ago we realised that determining just what

technologies meet sustainability criteria means we have to understand and employ life cycle analysis (LCA). A realisation of the importance of LCA in the last 10 years or so has seen Australia adopt LCA and develop local life cycle inventories (LCI) such as those produced by the Building products Innovation Council (BpIC) and the Australian Life Cycle Assessment Society (ALCAS).

One of the most important things Australia could do is to continue to be among the world leaders in the development of sustainable cities and communities. To do this we need to develop ‘sustainability metrics’, this means we have to go ‘beyond LCA’. LCA is designed to measure negative environmental impacts. ‘Beyond LCA’ techniques use LCA but also consider things like sustainable forestry certification, local biodiversity (impacts and restoration) and social impacts to e.g. ensure minimising carbon emissions doesn’t deliver unwanted impacts elsewhere in the supply chain. These positive Development metrics will help us understand and measure the holistic impacts of products and

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 level, their leadership is essential in specifying efficient, productive and healthy space in their accommodation guidelines, and more sustainable choices in their procurement procedures.

The biggest single thing governments can do is lead by example. The integration of green procurement policy and metrics (including

both LCA and ‘beyond LCA’ measures) into their own purchasing policies in meaningful (not token) way and committing to it is paramount. This will require re-training procurement staff so they understand sustainability, building, and product certification and rating systems and how they work with a focus on embodied as well as operational impacts. NABERS is a good example of how operational outcomes cannot be achieved without a focus on correctly researched, specified and purchased products in combination with appropriate design, correct delivery during construction and commissioning. Requiring NABERS for government buildings and government tenanted buildings would be just one of the great outcomes from the implementation of a government wide green procurement policy.

systems within cities that offset the negative impacts by creating ‘net positive’ impacts rather than just reducing impacts or creating ‘neutral’ solutions that can never lead to true sustainability.

state & local governments are large property owners and stakeholders in construction projects in australia. how

does government procurement policy impact on the green building industry here and should government be taking the lead in retrofitting existing properties to meet naBers standards?

Leadership at all levels of government is essential if we are to transform our built environment. The Green Building Council

of Australia has long advocated that governments demonstrate visionary leadership by rating all the buildings they own, develop or occupy with both Green Star and NABERS ratings. By communicating successes, challenges and learnings with case studies, local businesses can understand the value and importance of

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Since governments occupy such a large percentage of commercial buildings at federal, state and local level, their leadership is essential in specifying efficient, productive and healthy space in their accommodation guidelines.

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.{

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. {

romilly madew leads Australia’s peak industry association responsible for creating sustainable buildings and places for everyone. Romilly is an experienced green building, sustainable communities and cities advocate, both nationally and internationally.

Romilly chairs a number of influential task groups and steering committees on the built environment. These include: Board member of the World Green Building Council (WorldGBC) and the Chair of the WorldGBC International Rating Tools Task group; Deputy Chair of the Australian Sustainable Built Environment Council (ASBEC) and Chair of ASBEC’s Cities 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.

{123 Albert St


acknowledgmentssPeciaL thank sBrisbane Marketing is indebted to our special contributors for their generous involvement with 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 photography

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Brisbane Economic Series Issue 3

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Transcript of Brisbane Economic Series Issue 3