Mirvac has completed the electrification of its EY Centre at 200 George Street in Sydney, which it co-owns with M&G Real Estate, making it the fifth fully electric office building in its portfolio.
The building, which holds 6 Star Green Star and 5.5 star NABERS Energy ratings, has been upgraded by replacing gas-based systems with high-efficiency electric heating and hot water, including the use of natural refrigerants to reduce environmental impact.
The company said the change reflects a broader shift in the office market, where owners are responding to growing tenant demand and policy signals to transition away from gas.
Chief asset management officer, Victoria Tavendale, said this was an important step in the developer’s ambitions to decarbonise by 2030 and the project sets an example by showing how existing Premium-grade assets “can be repositioned to meet changing tenant expectations.”
“Projects like this are critical to how we decarbonise our portfolio over time. They allow us to reduce our reliance on offsets, respond to tenant demand and position our assets for the future.
“By removing gas from core building systems, we’re reducing emissions and ensuring the asset remains competitive for tenants with net zero commitments.”
According to JLL research, penned by its head of sustainability value and risk in Asia Pacific, Georgia Warren-Myers and head of strategic research, Annabel McFarlane, 85 per cent of large Sydney CBD tenants now have net zero targets, many with deadlines by 2030.
But as of mid-2025, fully electrified buildings accounted for just 2 – 3 per cent of total office stock across the Sydney and Melbourne CBDs. “This means demand for fully electrified buildings outstrips supply by more than 16 to 1,” the report said.
“By 2027, fully electrified buildings will still be just 7 per cent of the market. Fully electrified office buildings are demonstrating initially 23 per cent higher rents and 7.8 per cent lower vacancy than the wider market.
“Even highly energy-efficient assets (but not fully electrified) with NABERS 5.5-Star and 6-Star ratings show 7 per cent higher rents and 5.1 per cent less vacancy.”
Mirvac said this meant there is a “clear opportunity for commercial property owners who act early”.
“We’re seeing sustainability move from a differentiator to a core requirement in leasing decisions,” Tavendale said.
The company said there is a strong business case for electrification, especially when industry data shows buildings with strong sustainability credentials can support stronger leasing outcomes and long term asset performance.
M&G Real Estate’s head of Australia, Alex Banzic said, “the electrification of EY Centre builds on the asset’s strong track record in innovation and sustainability, helping ensure it remains relevant, resilient and attractive to occupiers over the long term.”
Mirvac’s CEO, Investment, Richard Seddon said: “Investing in electrification is key to achieving our net positive carbon target, and at the same time, helps us to maintain long-term asset value and ensure our portfolio remains aligned with tenant demand for low-carbon buildings”.
The company said it has been committed to delivering all electric new office developments since 2019, as well as targeted upgrades to existing assets. All electric buildings include 80 Ann Street in Brisbane, Bay Centre, One Darling Island and 101 Miller Street in Sydney. While buildings targeting the removal of gas and rollout of electric heat pumps and system upgrades include 275 Kent Street and 8 Chifley Square in Sydney and Riverside Quay in Melbourne.
