Commercial Building Disclosure Program

Energy Efficiency need-to-knows for commercial owners and lessors…

Energy Efficiency need-to-knows for commercial owners and lessors

Since 1 July 2017 more commercial buildings are now required to disclose energy efficiency before the building goes on the market for sale, lease or sublease.

The Commercial Building Disclosure (CBD) Program now requires most sellers and lessors of office space of greater than 1000m2 to obtain a Building Energy Efficiency Certificate (BEEC). Previously, only buildings of 1000m2 or more were under the mandatory disclosure threshold. BEECs must also now be publicly available on the Building Energy Efficiency Register.

This change is due to section 12 of the Building Energy Efficiency Disclosure Act 2010 (Cth) (the BEED Act), which sets out the process for requesting a BEEC. Owners and lessors must provide a current, valid BEEC to potential buyers or lessors free of charge as early as possible in the transaction process or on request.

Why BEECs?

The CBD Program aims to improve the energy efficiency of Australia’s commercial buildings and help reduce greenhouse gas emissions. BEECs create a more informed market, with building owners encouraged toward energy efficiency and green buildings.

BEECs provide consistent, meaningful and comparable information about the energy efficiency performance of individual buildings, making it easier for prospective buyers and tenants to choose more energy-efficient spaces.

Applying for a BEEC

The BEECs are issued by the Commonwealth Department of Industry, Innovation and Science. Only accredited CBD assessors can apply for BEECs on behalf of building owners or lessors. The Australian Government provides a register of CBD assessors accredited under the Act. Penalties apply for failing to comply with your obligations under the BEED Act.

A BEEC has two parts:

  1. National Australian Built Environment Rating System “NABERS”
  2. Tenancy Lighting Assessment “TLA”.

Once a NABERS star rating and a TLA have been obtained, the CBD Accredited Assessor can apply for a BEEC on your behalf. The NABERS star rating must be used in all advertising material for the sale, lease or sublease of the building or space.

Owners and lessors are not required to continuously maintain a valid BEEC. However, the information in a BEEC can cover a significant period (such as electricity bills over a year, and logs for after-hours air conditioning).

You can check if your building is affected by the CBD Program here. Information about buildings that may not be affected due to exceptions and exemptions is available here.

Please contact us today if you need assistance in obtaining a BEEC for your commercial property, or have any questions about the CBD Program and how it may affect you.

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