22 May 2013 — New Zealand Green Star offices outperform non-Green Star office buildings, according to the latest IPD Green Property Index.
The latest results showed that Green Star offices attracted an 11 per cent total return compared with 9.1 per cent for non-Green Star offices.
Property Council New Zealand chief executive Connal Townsend said: “Green Star office property stands up well to scrutiny, attracting higher returns than non-rated office property.”
Return outperformance for Green Star office buildings was driven by a positive capital growth component of three per cent against one per cent for non-Green Star buildings.
Capitalisation rates for Green Star rated office buildings were 20 basis points lower, consistent with the lower investment risk inherent in Green Star buildings, which are generally newer and of better quality.
Net income per square metre was higher at $397 a square metre compared with $299 a sq m for non-Green Star offices.
Green Star offices also had much lower capital expenditure rates of $27 a sq m compared with $113 a sq m for non-Green Star buildings.
The PCNZ/IPD New Zealand Green Property Investment Index tracks the performance of standing investment office assets with a Green Star rating from the New Zealand Green Building Council. The index includes 15 Green Star buildings valued at NZ$1.1billion, reflecting 25 per cent of office assets by value in the New Zealand database. The report did, however, note that due to the small sample size, the results are tentative.
NABERSNZ is set to begin in New Zealand this year. The government’s Energy Efficiency and Conservation Authority Business commercial program manager Karen Chaney said NABERSNZ will aid tenants and building owners in seeking out efficient commercial buildings.
- See our story New Zealand piloting NABERSNZ