Electrification and NABERS compliance for commercial assets

by | Nov 25, 2024 | Livable cities and reforms

In the commercial real estate market, the shift towards a more sustainable future is rapidly accelerating, with electrification taking centre stage. This transition is driven by policy changes, environmental imperatives, and growing tenant demand for greener, more energy-efficient spaces. NABERS (National Australian Built Environment Rating System), which measures building performance across energy, water, indoor environment, and waste, plays a critical role in guiding this transition. Commercial property owners and investors are increasingly aware of the dual benefits of electrification, enhancing environmental performance while improving compliance with NABERS standards. MBC Group is well-positioned to support these efforts, offering tailored compliance assessments and project guidance to facilitate this transition.

The current landscape

Australia’s commercial sector is seeing a wave of electrification initiatives, with developers like Mirvac, Stockland, Investa and Dexus setting ambitious targets to eliminate natural gas infrastructure by 2030. This move aligns with Australia’s broader environmental goals, aiming to reduce emissions, lower operational costs, and support cleaner energy use across commercial assets. In many cases, traditional gas systems for heating, hot water, and cooking are being phased out in favour of electric alternatives. These electrified systems are typically more efficient, compatible with renewable energy, and supportive of net-zero carbon commitments. For property owners and developers, this shift is no longer optional. It is becoming essential to meet both regulatory expectations and the demands of stakeholders who value sustainable business practices. Major commercial landlords are planning portfolios that will not only comply with but exceed current environmental standards, which adds value to their assets and aligns with evolving corporate social responsibility policies.

NABERS and the electrification mandate

NABERS is a cornerstone in Australia’s environmental regulatory framework, providing a comprehensive system to rate and compare the environmental performance of commercial properties. With the push towards electrification, NABERS is adapting its methodologies to better reflect a building’s environmental footprint in a rapidly changing landscape. Upcoming changes to NABERS ratings, effective from July 2025, will reward all-electric buildings with higher scores while penalising properties that retain gas infrastructure. This adjustment reflects NABERS’ emphasis on aligning Australia’s commercial building standards with the country’s sustainability goals.

The ratings will more directly influence a building’s marketability and operational performance. Properties with high NABERS ratings attract premium tenants, who are increasingly prioritising buildings that reflect their own commitment to sustainability. For commercial property owners, maintaining or improving their NABERS rating is not only a matter of regulatory compliance but a competitive advantage.

What MBC Group can offer

As the commercial market navigates the complexities of electrification and NABERS compliance, MBC Group offers comprehensive building surveyor expertise to help clients successfully transition to all-electric systems while meeting or exceeding legislative compliance requirements.

Compliance assessments for electrification projects
MBC Group conducts thorough compliance assessments on electrification projects, reviewing design options, confirming adherence to regulatory requirements. Our expert team evaluates every stage, from the initial concept design through to final implementation, offering guidance to streamline the compliance process.

Technical support
The transition to all-electric systems often involves complex logistical and technical challenges, such as adapting existing electrical infrastructure, updating plant rooms, and replacing gas-reliant systems. MBC Group provides clients with technical oversight for building works, addressing these challenges with precise, actionable solutions. We work closely with project stakeholders to ensure electrification upgrades meet performance and sustainability goals without disrupting operations.

Exempt Development compliance statements
Many electrification upgrades will qualify as “exempt development,” allowing them to bypass certain formal development approval processes. MBC Group is experienced in assisting with these projects to help simplify regulatory interactions and ensure projects are aligned with building code requirements.

Partnering for a sustainable future

The commercial market in Australia is heading towards an all-electric, low-carbon future, with NABERS at the forefront of this transformation. By choosing MBC Group as a partner, clients gain access to our extensive building compliance expertise in sustainable design and electrification. Our proactive approach supports clients in achieving high standards of environmental performance, enhancing property value, and aligning with the latest industry standards. We are proud to play a role in creating sustainable, thriving built environments that benefit businesses, communities, and the planet.

As electrification becomes a market standard and NABERS compliance a necessity, MBC Group is ready to lead clients through this vital transition, setting them up for success in a more sustainable and competitive future.

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