With the commercial property market heating up, if you are a
vendor or a lessor you should ensure that your building has
appropriate NABERS certification in place. The Commercial Building
Disclosure (CBD) Program requires vendors and landlords of
disclosure-affected buildings to obtain a Building Energy
Efficiency Certificate (BEEC), before the building goes on the
market for sale, lease or sublease.
WHAT IS A DISCLOSURE AFFECTED BUILDING?
Normally, a building will be disclosure-affected if that
a commercial office building with a net lettable area of
greater than 2,000 m2;
used for administrative, clerical, professional or other
information-based activities and includes any support facilities
for those activities; and
for sale, lease or sublease.
WHAT BUILDINGS ARE NOT AFFECTED?
A building may not be disclosure-affected if that building
a mixed-use building with less than 75% net lettable office
a new building, where there is a certificate of occupancy less
than 2 years old;
transferred through the sale of shares or units of
leased on a short term lease, (i.e. for a period of less than
12 months); or
leased by exercising an option to renew or extending an
WHAT DOES A VENDOR OR LANDLORD DO IF THE BUILDING IS DISCLOSURE
If a building is disclosure-effected, the vendor or landlord
will require a Building Energy Efficiency Certificate (BEEC) before
the building is placed on the market for sale or lease. BEECs
include the building's National Australian Built Environment
Rating System (NABERS) Energy star rating, a tenancy lighting
assessment of the relevant area of the building and general energy
efficiency guidance. The building's NABERS rating will also
need to be included on all advertising material.
A BEEC is valid for 12 months, must be publically accessible on
the online BEEC register and must include:
a NABERS Energy star rating for the building;
an assessment of the energy efficiency of tenancy lighting in
the area of the building that is being sold or leased; and
Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
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