Environmental ratings part 2: Four good reasons to improve your building’s rating

November 15, 2019

In last week’s blog we delved into the topic of environmental ratings and why they are good for business, using a customer case study at 99 Elizabeth Street, Sydney. This is part of a podcast series we kicked off this month for building operators and managers in which CIM’s engineers, including myself, draw on our own experiences in the building industry to share insights and recommendations in response to current building operations challenges.

If you haven't already done so, I encourage you to listen to our podcast on environmental ratings hosted by tech journalist Anthony Caruana. CIM Engineer Scott Beauman and Kyko Group owner Bill Jenkins discuss the benefits and practicalities of improving operational efficiency and environmental ratings across property portfolios, which I will summarise today in this blog post.

Why you should invest time into improving building efficiency and environmental ratings

Achieving higher environmental ratings by increasing the efficiency of your buildings results in a suite of extra benefits for owners and operators. Of those benefits, increased asset valuation, happier tenants, accountable contractors and industry recognition tops the list for building owner Bill Jenkins.


Request your free environmental assessment.


Increased asset value

Anyone in the business of buying and selling buildings will pay attention to environmental ratings, because, as Bill explains in the podcast, higher-performing buildings have lower net operating costs, making them a more attractive option for buyers. Better ratings also increase asset valuation, enabling sellers to command higher prices for their buildings.

“As a building owner, I’m in the business of managing our portfolio of buildings and buying and selling buildings. We found that our NABERS environmental rating was becoming an important consideration when people were buying buildings. If NABERS ratings were low on our buildings we were basically penalised in terms of sale prices as purchasers were not willing to pay as much.”

Happier tenants

Applying building analytics to improve environmental performance lifts a building’s overall performance and reduces running costs. For tenants and building owners such as Bill, “the reduced costs of operating these systems is a benefit, and we can pass these reduced costs on to the tenants.”

If facility managers can reduce system faults and building issues before they become an even bigger issue, they can also improve tenant comfort and reduce complaints. This gives them more time back in their day to take a smarter and more proactive approach to building operations that delivers measurable short-term and long-term benefits for tenants, shareholders and the community.

Importantly, happier tenants are also more likely to sign onto another lease!

Accountable contractors

Building analytics enables you to hold contractors accountable, help them do their jobs more effectively, validate operational improvements and make better use of their resources. Arduous contractor negotiations and reactive maintenance become a thing of the past as greater visibility and understanding of the key facts around building performance paves the way for more collaborative and productive workflows between onsite teams and contractors.

In Bill’s experience, “PEAK keeps our contractors honest. The platform will identify faults independently and allow our building managers to ensure we are getting the best out of contractors. And that can save significant dollars.”


Bill sums it up perfectly when he says “another benefit of a high NABERS rating is the kudos. We are quite proud to have a 5.5. star rating.”

Achieving peak building performance and a rating to match delivers many business benefits for building owners and operators, and recognition should also be at the top of this list. The industry recognition that comes with peak performance helps your building stand out from the crowd and be noticed by the right buyers, investors and current and prospective tenants.

Sure, there are some luddite tenants (and owners) who aren’t so bothered about environmental ratings, but I think they feel that way because improving environmental ratings is sitting in their “too hard” basket and they haven't yet realised how building analytics can make this process a lot easier.

I don’t believe it will be long before environmental ratings become more important for every building owner, especially as more governments and private and public companies around the world start to mandate that the buildings they occupy have decent environmental ratings.

This is already the case in Australia, where for Bill and other commercial office space owners, the environmental rating scheme NABERS makes it “mandatory to disclose your rating on marketing for the lease and it is something that an incoming tenant will take notice of."

If you’d like to understand more about the tangible benefits your company can achieve without any capital expenditure, complete the form below to request your free environmental ratings assessment.


Request your free environmental ratings assessment


About Kyko Group:

Founded in 1989, Kyko Group is an Australian property development and investment group that operates primarily in the office, retail, residential and hospitality sectors. Kyko has a development ethos in which innovation and sustainability are highly valued. The properties acquired by Kyko provide a mix of stable yield-generating investments and value-add development opportunities. The Kyko team is led by Bill Jenkings who is responsible for setting strategy, funding and sourcing investment opportunities.  Kyko has built its reputation on being direct, prompt and commercial in their property dealings.

CIM Team
November 15, 2019