Green-rated office buildings in Sydney and Melbourne enjoy a premium on sales prices depending on their NABERS rating, a new report by real estate services firm Knight Frank has found.

Knight Frank’s new Active Capital report found that office buildings in Australia’s two largest cities with a NABERS Energy rating of up to 4.5 stars benefited from an 8% premium on sales price compared to unrated buildings, while those with higher ratings of 5, 5.5 or 6 stars saw a 18% increase.

In addition to green ratings, the model also reflected building attributes such as size, height, age, building grade, lease term and locational factors. Year of sale was also included to capture cyclical and other time-specific impacts on sales price.

Prime Central London office buildings were also analysed in the report, which found that buildings with a BREEAM Excellent rating enjoy a 10.5% premium on sales price compared to equivalent unrated buildings, while those with a BREEAM Very Good rating enjoy a 10.1% premium.

The high sales prices achieved by green office buildings across the globe and in different sized markets suggest a strong, global pattern between sustainability and value.

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