Brisbane Economic Series Issue 3

brisbane
economic
series
issue three: may 2012
property: the green
building issue

foreword
Welcome to the third edition of the Brisbane Economic Series, a bi-monthly
publication providing vital insights into the city’s extensive business, investment
and growth opportunities.
Introducing green initiatives into the property industry is the focus of this edition
and we are fortunate to hear the thoughts and opinions of some of Brisbane’s key
business leaders.
As Australia’s New World City, Brisbane is at the forefront of green building
design. Since 2010 six office buildings in Brisbane have been certified with a 6 Star
Green Rating and the demand for such space continues to grow.
Within Brisbane’s CBD and inner-city, more than one million square metres of
quality office space has been added over the past decade taking the current stock
to 3.2 million square metres. Of the 100,000 square metres under construction
that will be added this year, more than 70 per cent is already pre-committed.
Such phenomenal demand is a great thing for Brisbane’s economy. Green
building construction stimulates the need for locally sourced green building
materials; while an increase in these buildings attracts more and more investors.
My vision is for Brisbane to become Australia’s cleanest and greenest city and a
carbon neutral destination by 2026.
Brisbane City Council has encouraged green leadership in the property market
by sponsoring the development of a number of green star rating tools. The
restoration of Brisbane City Hall is also reflective of my commitment in this area.
Improvements to this heritage building will include many sustainable initiatives to
ensure it achieves a Green Star Rating when it officially reopens early 2013.
Now more than ever, green leadership in the property industry must be
encouraged for its direct contribution to the economic development of this city.

Gr aham Quirk
Lord M ayor of Brisba ne

2 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y CONTENTS

contents Issue three

05 08 11
A revolution led by government Ethical investment delivers Green building design –
and propelled by corporate greater returns as a two-tier delivering economic benefits
conscience puts Brisbane at the market emerges. to both the building owner
forefront of green building. and society as a whole.
Paul Day Brian Noble Richard Fairhe ad
He a d of Re se a rch QLD, Pa rtner, Cl ay ton Ut z Brisba ne Queensl a nd E x isting Buildings
Sav ill s Austr a lia Le a der, A rup

3 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y A C K N O W L E D G E M E N T S // C R E D I T S CONTENTS

contents Issue three

14 15 15
Ian Klug, Chair, Brisbane “The Green Star environmental “Local manufacturers are
Marketing and Lord Mayor’s rating system has had a increasingly realising this is
Economic Development dramatic impact on the property a ‘window of opportunity’ for
Steering Committee and construction industry.” them.”
interviews Romilly Madew and
Romilly Made w David Baggs
David Baggs on the topic of Chief E x ecuti v e Officer, Green Technical Director, Ecospecifer
trends in the Green Building Building Council of Austr a lia

industry.
Ian klug
Ch a ir, Brisba ne M a rk e ting

4 B R I S B A N E E C O N O M I C S E R I E S – I S S U E 3 : p ro p ert y A C K N O W L E D G E M E N T S // C R E D I T S CONTENTS

Green Square North Tower

It is very unlikely that a new building
in Brisbane today would be planned
without having regard to embracing
some of the principles of sustainable
development.

Brisbane has many green buildings and they are
A revolution led by government and increasing in number every year. It is very unlikely that a
new building in Brisbane today would be planned without
propelled by corporate conscience having regard to embracing some of the principles of
puts Brisbane at the forefront of sustainable development.
This consideration is heightened further for developers
green building. of commercial office buildings. These giant edifices are
major contributors to the consumption of vast quantities
Paul Day of energy, and by extension, the production of carbon
He a d of Re se a rch QLD, Sav ill s Austr a lia based gas emissions.
The facts have been put forward by many
organisations, not the least by the front-running Green
Building Council of Australia (GBCA), but many people
still don’t understand the full impact which emanates
from commercial buildings.
It’s not just the energy and water that these buildings
consume daily, it goes much further, right down to the
planning stage so that if the building is oriented on the Santos Place


site and designed to take advantage of that orientation,
it will take less to cool it, make better use of natural While there are many green
light and take less to maintain it when it is constructed.
Use of recycled materials during the construction decisions in the construction process,
phase can make a difference and many other new it is ultimately the operation of the
materials can be products of less intensive and energy
using manufacture. building that should receive the
While there are many green decisions in the main focus.
construction process, it is ultimately the operation
of the building which should receive the main focus.
Efficient operation is assisted by a range of inclusions
such as zoned low-energy lighting, zoned air-
conditioning, and use of chilled beams as an alternative
to normal air conditioning, recycled or ‘black’ water for
use in toilets, window screening and the list goes on.
All these initiatives come with a cost. To deliver a
5 Star Green Star commercial office building, there
are estimates of a 3%-8% cost impost on normal
construction costs and for a 6 Star Green Star that
added cost rises to 8%-11% or more. These are
believed to be conservative but can still defeat the
feasibility of a project.
Cromwell Property Group’s Energex House

FIGURE 1: Bri sba ne office a nnua l ne t a b s orp tion (s q m) However, the cost of not engaging in green building principles can be even greater.
A- GRADE VERSUS B- GRADE JAN-06 TO JAN-12
Developers run the risk of a longer lease up period and the possibility of tenants
200,000 negotiating lower rents on the basis of no official green accreditation.
150,000 What is clear is that the Property Council of Australia has shown leadership in
incorporating a number of elements of sustainable development as well as Green Star
100,000
accreditation in their guide to Office Building Quality. While the Property Council does not
50,000 reveal the grading of buildings, the criteria are available for anyone to make their own
assessment.
0
The question arises “Do tenants really care about the green issue when it comes down
-50,000 to securing their accommodation?”
-100,000 Perhaps five years ago it would not have been foremost in their minds but that is
changing, particularly with the larger institutions. Led by government departments and
-150,000
propelled by corporate conscience, large companies are specifying not only that their
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
accommodation should be Grade A quality but also that it should be 5 Star Green Star as
a-Grade B-Grade a minimum and 4 star NABERS, so that their standards in accommodation match their
Source: Property Council of Australia, Savills Research
expressed values.


512 Wickham St

{
There is plenty of evidence to show that Grade A The provision of bicycle racks, lockers, showers
office accommodation outperforms secondary office together with recycling of employees waste allows
accommodation in terms of absorption as the chart above employees to make their own contribution which
shows. There has always been a ‘flight’ to quality office leads to greater staff satisfaction and ultimately better
Paul Day spent 20 years in the banking industry, the last
accommodation when new buildings enter the market productivity. 10 years of which he financed property investment and
but the Brisbane CBD and near city office markets have The new world city of Brisbane has shown it is a world development in south-east Queensland. He obtained his
added an unprecedented 650,000 square metres of new leader with the number of 5 Star Green Star and 6 Star qualifications in property economics from the University of
Technology in Brisbane, where he graduated with distinction.
green office space in the past five years of which around Green Star office buildings in both the CBD and near city His background in banking, real estate and more recently, his
73% has been taken up, while in that same period, office markets constructed over the past five years. private involvement with property development, had provided
occupied space in the Grade B stock has actually declined The commercial impact is – if it is not green, it will not Paul with a good understanding of the property market.
by more than 40,000 square metres. be in favour. In his current role of research and consultancy, Paul is the
author of a range of research papers on the property markets
The message is clear; tenants are targeting the green in Queensland and has successfully completed more than
buildings in ever increasing numbers and only reverting 100 consultancies on property related projects for government
to the lower quality stock when contiguous space starts departments and private firms. Paul is the past Chair of the
to become scarce.
Green buildings offer more than just Research Committee with the Property Council of Australia,
Queensland Division and currently sits on their Commercial
The benefit of green buildings is not just about sustainable developments, they also and Corporate Real Estate Committee and Sunshine Coast
institutions making a statement of their support for Committee, along with membership on the newly formed
sustainable development, in fact, these days keeping
offer employees the opportunity to Research Roundtable.

employees happy is a prime concern for companies. participate in a healthy lifestyle,
Green buildings offer more than just sustainable
developments, they also offer employees the opportunity
respectful of the environment.
to participate in a healthy lifestyle, respectful of the
environment.



It is possible to identify a two-
tier market emerging, as green
buildings are increasingly able to
attract higher premiums than their
older counterparts.

Ethical investment delivers greater In recent years one of the major changes in the Green Star-certified, with a wide range of building types
property industry has been the move towards ‘green from schools and hospitals to industrial facilities and
returns as a two-tier market emerges. building’, with increasing demands from corporations shopping centres achieving Green Star ratings.
for more efficient and cost-effective premises. The 1 July 2012 sees the introduction of Tax Breaks for
focus now is not only on the construction and design of Green Buildings, a $1 billion Federal program. Eligible
Brian Noble buildings, but also how they are operated and occupied. businesses that invest in improving the energy efficiency
Pa rtner, Cl ay ton Ut z Brisba ne The industry expects mandatory disclosure requirements of their premises will be able to apply for a bonus tax
to begin to be enforced more strictly, and the rising cost deduction of 50% of the cost of eligible assets or capital
of carbon will inevitably act as an incentive to businesses works.
to examine the use of different materials in order to make The 2008 industry survey by BCI Australia, for the
more cost-effective choices. Green Building Market Reports, confirmed the increasing
Indeed it is possible to identify a two-tier market level of green building activity. The report noted that:
emerging, as green buildings are increasingly able to • 85% of Australian architects, contractors and
attract higher premiums than their older counterparts, building owners had been involved in green building;
with the latter suffering from lower rental rates and • 66% of Australian construction and property
higher long-term risks for tenants and landlords, with professionals described their firm’s commitment to
greater potential capital expenditure requirements in the green building as ‘high’ or ‘very high’.
future further decreasing their value. Colliers have reported that a tenant survey of the
Brisbane, Sydney and Melbourne CBD markets found
Current De v elopment s that the two highest ranking predicted future building
In February 2012 the Green Building Council of requirements were more effective air-conditioning and
Australia (GBCA) issued it’s 400th Green Star rating. building environmental performance.
More than 18% of Australia’s CBD office space is now


123 Albert St Ca rbon Ta x and energy-efficiency benchmarks. Older, less energy
The introduction of a carbon tax will evidently have a efficient buildings with higher energy costs will face
significant commercial impact, with the GBCA stating lower demand from tenants.
that the scheme will add value to energy efficient homes • An increase in rents is likely for energy-efficient
and encourage consumers to seek out greener buildings buildings in response to higher demand from
which will offer advantages to them both in terms of tenants, who will be willing to pay more to secure
costs and improving brand image and marketability. The such buildings with lower operating costs.
Buildings with Green Star or NABERS Energy ratings are
currently delivering greater returns than those buildings Commercia l Benefit s of Green
without ratings, and the GBCA expects this trend to Buildings
accelerate with the introduction of the carbon tax.
The carbon-pricing legislation will undoubtedly impact
1. Opportunity to build brand recognition and
upon different groups involved in construction and
improve public image
industry:
2. Lower energy and operating costs
• Increasing prices will drive the property and
3. Attract government and other large corporate
construction industry to demand higher standards
tenants
of efficiency and greener materials in an effort to
4. Higher tenant retention
reduce costs.
5. Healthier work environments
• Tenants will naturally look to mitigate rising energy
6. Higher rent returns
costs by seeking buildings constructed and
7. Increased interest by Ethical Investment funds.
maintained to meet best practice environmental

Increasing prices will drive the
property and construction industry
to demand higher standards of
efficiency and greener materials in
an effort to reduce costs.

123 Albert St


There are undoubtedly benefits to both the landlord
and the tenant in embracing the green building initiative.
For landlords, greener buildings have been shown
to have a higher net worth, lower levels of vacancy
and are therefore more marketable. For tenants,
studies have shown links between sustainable greener
working environments and higher employee happiness
and satisfaction levels, resulting in lower levels of Studies have shown links between
absenteeism.
sustainable greener working
In the Green Council of Australia’s 2008 Report , the
majority of investors surveyed stated that they would environments and higher employee
pay more for a Green Star Building, clear evidence of happiness and satisfaction
the improved marketability of such buildings. They are
easier to sell and lease, which reduces vacancy times levels, resulting in lower levels of
and hence income loss, meaning that a green building absenteeism.
offers a significant competitive advantage. Whilst a rental
premium is not yet proven in all cases, taking a longer
term view the industry expectation is that rental growth,
tenant retention and operating cost savings will become
the main factors in boosting the market value of Green
Star buildings.

{
Brian Noble has been voted by his peers as one of Australia’s
Best Lawyers in Real Property (2009, 2010, 2011).
Brian has specialised in commercial property transactions for
nearly 30 years. He has a reputation for bringing both a practical
and innovative approach to his advice. His work includes some
of the most significant commercial transactions in Queensland
and agribusiness transactions in Australia.
Brian’s experience includes property leasing and management
and the acquisition, development and disposal of commercial
property. He has advised on residential and commercial
developments, state land tenure issues and agribusiness
transactions. Brian’s clients include Australia’s largest local
authority, the Queensland State Government and the
Westfield Group.



75 Denham St

To try and gain an upper edge
on the competition, the use of
green design principles are now
becoming common practice.

Today’s competitive real estate market means
Green building design – delivering owners are continually dealing with tenant demands for
economic benefits to both the better performance and upgrades to their space. Other
aspects under consideration are the introductions of new
building owner and society as premium and A grade office space, mandatory disclosure,
increase in energy costs, government policies demanding
a whole. high performing buildings and the forthcoming carbon
tax. These are just a number of greening factors
Richard Fairhe ad influencing how owners design and build new buildings
Queensl a nd E x isting Buildings Le a der, or retrofit existing buildings in the current commercial
A rup marketplace.
To try and gain an upper edge on the competition,
the use of green design principles are now becoming
common practice. But is there a benefit to this outside of
a particular rating? The short answer is yes.
Sustainable design concepts are one factor ensuring
a project can reach specific sustainable targets – this is
only one of the aspects of a truly sustainable approach. If
a design team can utilise an integrated team approach,
incorporate life cycle costing and analysis into the
product, the end result is one which not only provides
sustainable design, but rather a building which can
operate for a number of years efficiently.


75 Denham St, Before

As new buildings enter the commercial market, more
pressure is put on the existing building stock as they require
maintenance upgrades or are approaching the end of their
original design life. Designers and owners can revitalise
properties to offer similar amenities and design principles to
those offered by new building stock.

New buildings incorporating green or sustainable Recent work by Arup has assisted in transforming
design are now common in the commercial marketplace. older building stock within the Brisbane marketplace
Industry research shows, buildings with higher industry upgrading both the visual and performance aspects.
recognised ratings attract higher lease rates and resale These works bring the buildings in line with industry
values compared to those with low or no rating. From an requirements to meet market demands.
economic perspective owners have made the conscience 20 Wharf Street was originally a small office building
choice to showcase their properties utilising a green surrounded by larger more prominent buildings and
approach. through a major redesign process is now a large
Through work with organisations such as the Property data centre. This is a great example of a property
Council of Australia and other industry members, reconfigured or ‘re-lifed’ to maximise the potential of
Arup has focused our efforts and expertise in the the site. The owner can now realise full utilisation of the
existing building marketplace. In recent years and in building and a constant revenue stream.
collaboration with key industry bodies, we have published 295 Ann Street is uniquely positioned in the heart of the
a number of guidelines and online assessment tools on CBD, but due to its age (built circa 1968) was operating
existing buildings focusing on how to make the most of a inefficiently and unable to attract key government tenants.
tired asset . The property owners transformed the building through a
As new buildings enter the commercial market, more repositioning initiative and upgraded the services, facade,
pressure is put on the existing building stock as they lobby, and street presence. Vitally, these works have
require maintenance upgrades or are approaching the allowed the owners to attract an anchor tenant which
end of their original design life. Designers and owners now is occupying a modernised building, while achieving
can revitalise properties to offer similar amenities and energy savings and high occupancy levels.
75 Denham St, After
design principles to those offered by new building stock.


One One One Eagle St © Cox Raynor Architects

Arup realises the changing global pressures we are
facing with respect to increasing population density,
diminishing natural resources and rapid climatic change.
Clearly, all three are linked in a very simple manner; more
humans = more use of resources = more GHG emissions
= more climatic change. These thee interlinked concepts
have been captured in Arup’s vision for moving towards
an ecological age of civilisation. The key objectives of
achieving this vision are defined by three measurable
goals by 2050, which are:
1 – CO2 emissions reduction of 80%
New premium and A grade office 2 – Ecological footprint reduction to 1.4 global ha/
space, mandatory disclosure, person
3 - Human Development Index increase of 0.8-1.0
increase in energy costs, Our work in the existing building arena allows Arup
government policies demanding to work towards achieving the goals set out within the
Ecological Age, which has recently been incorporated into
higher performing buildings and our Australasia Region Strategy.
the forthcoming carbon tax... are
just a number of greening factors

{
influencing how owners design
and build Richard Fairhead has dedicated his career – which spans 15
years in both Canada and Australia – specialising in building
envelope for both new and existing buildings. Prior to joining
Arup in 2008, Richard was a partner in a building envelope
consulting firm based in Canada which focused on the exterior
construction of buildings in both new and retrofit, ranging from
single storey to 60 storey buildings including commercial,
industrial and residential. Considered an industry specialist in
his field, he has supplied expert witness testimony on various
building envelope failures cases.


University of Queensland

As the most biologically diverse capital in Australia, research and development communities.
Ian Klug, Chair, Brisbane Brisbane is a green city with a clear commitment to its For this issue, I talked to two of the key industry
environment. Guided by sustainably-focused governments players about trends in the green building sector and
Marketing interviews Romilly and world-renowned universities and research Australia’s competitive advantage in the emerging global
Madew, Chief Executive, Green institutions, Brisbane is evolving as a hotbed of innovation supply chain.
and sustainability.
Building Council of Australia, and Brisbane Marketing has the responsibility of driving Our reputation as a vibrant and
David Baggs, Technical Director, long-term social and economic benefits to Brisbane and
sustainable centre of innovation
the greater Brisbane region. As an organisation we are
Ecospecifer on the topic of trends in proud to collaborate with industry leaders, such as those and enterprise is attracting leading
featured in this publication, to help deliver Brisbane’s
the Green Building industry. vision for a prosperous city through a diverse range of businesses who are embracing our
economic development projects to attract investment and population growth, highly skilled
Ian Klug create jobs.
Ch a ir, Brisba ne M a rk e ting Our reputation as a vibrant and sustainable centre of workforce, competitive costs and well-
innovation and enterprise is attracting leading businesses respected research and development
who are embracing our population growth, highly
skilled workforce, competitive costs and well-respected
communities.


Brisbane Central Business District

ROMILLY MADEW DAVID BAGGS

The use of sustainable materials in the of its steel mill at Port Kembla, and investigating certification’ platform has been created, giving certified
IK building and construction industries in alternative energy sources to reduce the mill’s reliance products a significant market lead on typical non-
Australia is increasingly important to project on the grid. In the concrete manufacturing industry, by- certified products. Manufacturers who understand this
planning and execution. Where are the bulk of our products traditionally sent to landfill, such as fly ash and market potential (often imported from US or Europe) have
construction materials sourced and what impact is slag, are now being used. And in the timber industry, responded by complying with these standards.
the use of green building materials having on existing Australia stands out globally, in that almost our entire
supply chains in Australia? commercial timber acreage is certified by either the China is now Australia’s largest export
Forest Stewardship Council (FSC) or Australian Forestry IK market as well as our largest source of
The majority of the materials used in green Standard (AFS). imports. What impact has China’s status
RM buildings are made in Australia. Heavy as our largest two-way trading partner had on the
Australian building and construction industries?
DB
materials such as concrete, timber and steel After consideration of basic high mass
are readily available in Australia, and are expensive to structural materials like concrete, aggregate,
import. The Green Star environmental rating system for brick, block and some cement and steel, and The Chinese Government sees clean energy
buildings has had a dramatic impact on the property and acknowledging the prominence of China as a supplier
across most sectors, Australian supply chains typically
RM as China’s “great economic opportunity”,
which is why clean energy and green buildings
construction industry over the last decade. The majority
of Australian-supplied manufacturers have implemented sourced from a wide range of local, regional (SE Asia, are central planks in its latest five year plan. This is a
processes to ‘green up’ their production chains and final Korea and Taiwan), Middle Eastern, European and great economic opportunity not just for China, but for
products. The Australian Steel Institute, for example, has North American suppliers. The only requirements most Australia too. We know that China has rapidly become
introduced an Environmental Sustainability Charter, and products had to meet on entry were fit for purpose a leader in developing and exporting green technology
members are committed to reducing their environmental standards. However, as governments, property trusts such as photovoltaics and solar panels and it is also
impact. BlueScope Steel, one of the signatories of the and major building owners started demanding Green driving a determined green building program. The Green
charter, is working to reduce the energy consumption Star performance of buildings; a new ‘green product Building Council of Australia is working closely with


our counterpart in China to seek out opportunities for technology, products and plant going into buildings, or
Australian businesses with expertise in green building. the policies and incentives which provide the stimulus
It’s clear that China has the scale, It’s clear that China has the scale, and Australia the for their development. There are green roof solutions
and Australia the capabilities. We capabilities. We need to scale up our capabilities, and the from Europe and Scandinavia which are being slowly
Chinese need to adapt their capabilities to their scale. We implemented across Australia, which can help reduce
need to scale up our capabilities, have the micro, and they have the macro. and slow stormwater run-off, provide better building
and the Chinese need to adapt insulation, and improve local biodiversity. There are
This newfound ‘green product certification’
DB
lighting and energy efficiency solutions from the
their capabilities to their scale. platform has given local manufacturers a Asia Pacific which are being introduced to Australian
head start on emerging market suppliers. buildings, which can reduce energy demand, costs
Countries like China, and those in SE Asia generally, and related greenhouse gas emissions. But equally as
struggle to understand and implement the rigour and important are the ‘green door policies’ – or expedited
Cromwell Property Group’s Energex House transparency required by third party audited green planning procedures, which are being rolled out across
product certification. Even local suppliers sourcing many US states, which provide a massive incentive for
from these countries, often struggle to source the developers to make their project as green as possible
required detail information to meet certification, in order to gain development approval in less time.
typically having to fund the certification themselves Australia needs a balance of carrot (financial and non-
because ‘the factory doesn’t understand the need’, and financial incentives such as green door policies) and stick
sometimes even employing local consultants to travel (contemporary regulation and mandatory disclosure) in
to the factories to source the information themselves. order to improve the quality of development and building
Interestingly, European manufacturers often provide the stock.
same feedback to local suppliers seemingly believing
that ‘being a European supplier should be enough’. Without question the challenge is on to develop
Neither end of the spectrum understands the green
building market generally yet. Local manufacturers are
DB raw materials sourced from renewable and
recycled dematerialised low impact sources
increasingly realising this is a ‘window of opportunity’ that are de-coupled from the carbon cycle (low carbon) or
for them. As the green building sector storms on around are carbon sinks (carbon positive). The sorts of products
the globe and goes from strength to strength around that will meet these criteria are those sourced from bio-
Australia, it is one that won’t last too long. mimicry processes (learning low impact solutions from
nature), biologically derived polymers (low impact and
Australia is a recognised innovator in
IK
non-food source supply chain), nanotechnology (subject
green building and construction; going to proper health studies), emerging new renewable
forward which countries do you think will energy sources and building integrated energy generation
be leading providers of innovative solutions in this technologies. The countries that these technologies are
space and therefore offer trading partnerships for emerging from typically are Europe and the USA although
Australia? What are some recent examples of technical Japan, Taiwan and Korea are also in the mix. Recent
innovations that you consider have potential for examples of these technologies include:
widespread adoption here in the Australian market? • Weldable plastic roof membranes embedded with ‘
synthetic photosynthesis’ photovoltaic panels that
It’s an interesting question, and it depends work in indirect light and semi-shade – from USA;
RM whether ‘innovative solutions’ means the • Microspherical ceramic powder additives that make


dark colours heat reflective, now being added to roof The production of renewable energy is a key
coatings, driveway and paving paints – from USA;
• Interlocking cyclone resistant roofing tile system,
RM development area which private and public
sectors alike are researching, in order that
integrated with solar electrical panels and solar buildings might start to have a positive impact on their
hot water system - from a SE QLD start-up surroundings – producing energy, capturing and recycling
company (Tractile); water, harvesting produce and recycling materials,
• New generation LED lights that use a waste by- improving biodiversity – rather than just ‘minimising the
product from aluminium processing to deliver ultra- negative’ impacts. If we can help buildings produce more
low energy lights as bright as halogens- from Taiwan; and more energy – through solar panels, wind turbines,
• Solar reflective pre-coating for steel that can be regenerative lift drives and many other initiatives
rolled and pressed thereby enabling energy efficient being developed – we can start to take more and more
steel roof sheeting – developed in QLD. buildings ‘off-grid’, especially when coupled with new
levels of energy efficiency and demand reduction. There
Research and development is critical to the is also a great deal of research underway to examine the
IK future of the green building industry, Which extremes of the Australian climate, and how buildings
R&D initiatives are having the greatest can best adapt to hot, dry, cold or humid conditions.
impact on the Australian industry at the present time Shading methods, facade technology, double skin
and what else do you think could be done to ensure layers, solar orientation and material choice is all being
Australia maintains its status as an innovator in green investigated to see how buildings can suit and adapt to
building and construction? their environment, and to ensure Australia maintains its
‘innovator’ status.
University of Queensland
While we are good at innovation, sometimes it
DB seems to me we are not doing enough R&D in
Australia at the moment compared to Europe
and even the USA, let alone developing a culture here that
supports the growth of innovation through to markets.
Programs like the QLD BITI Grants that supported
the development and commercialisation of the Global
There is also a great deal of GreenTag certification system are rare, and even though
research underway to examine the Federal Governments Commercialisation Grants exist
they are not easy to win. We need to re-invigorate R&D
the extremes of the Australian within the SME sector.
climate, and how buildings can We are performing highly in the water industry
with some of the world’s most innovative low impact
best adapt to hot, dry, cold or water purification technologies in the world. Australian
humid conditions. Innovative Systems (AIS) is another Brisbane world
leader, this time in water disinfection. The AIS Eco-
Chlor self-cleaning water chlorinators never need any
chemicals or added chlorine, developing the needed
Bond University Mirvac School of Sustainable Development
chemical components to sanitise water from the


transforming their own buildings.
In Queensland, the State Department of Public Works’
has driven the uptake of green buildings and expanded
the building industry’s knowledge and experience. DPW
had three 6 Star Green Star – Office Design v2 projects
in locations spanning from the tropical far north to the
suburbs of Brisbane. Queensland also has a number of
other ‘firsts’ led by government, including Green Star-
rated schools and hospitals. Brisbane City Council is also
leading by example – having sponsored the development
of a number of Green Star rating tools, and registered the
redevelopment of the Brisbane City Hall as a ‘lighthouse’
example of green leadership.
Since governments occupy such a large percentage
of commercial buildings at federal, state and local
Cromwell Property Group’s Energex House level, their leadership is essential in specifying efficient,
productive and healthy space in their accommodation
guidelines, and more sustainable choices in their
procurement procedures.
chemicals dissolved in the water itself, endlessly. systems within cities that offset the negative impacts by
The biggest single thing governments can do
DB
Some time ago we realised that determining just what creating ‘net positive’ impacts rather than just reducing
technologies meet sustainability criteria means we have impacts or creating ‘neutral’ solutions that can never lead is lead by example. The integration of green
to understand and employ life cycle analysis (LCA). A to true sustainability. procurement policy and metrics (including
realisation of the importance of LCA in the last 10 years both LCA and ‘beyond LCA’ measures) into their own
or so has seen Australia adopt LCA and develop local State & local governments are large purchasing policies in meaningful (not token) way
life cycle inventories (LCI) such as those produced by
the Building Products Innovation Council (BPIC) and the
IK property owners and stakeholders in
construction projects in Australia. How
and committing to it is paramount. This will require
re-training procurement staff so they understand
Australian Life Cycle Assessment Society (ALCAS). does government procurement policy impact on the sustainability, building, and product certification and
One of the most important things Australia could green building industry here and should government rating systems and how they work with a focus on
do is to continue to be among the world leaders in the be taking the lead in retrofitting existing properties to embodied as well as operational impacts. NABERS is
development of sustainable cities and communities. To meet NABERS standards? a good example of how operational outcomes cannot
do this we need to develop ‘sustainability metrics’, this be achieved without a focus on correctly researched,
means we have to go ‘beyond LCA’. LCA is designed Leadership at all levels of government is specified and purchased products in combination with
to measure negative environmental impacts. ‘Beyond
LCA’ techniques use LCA but also consider things like
RM essential if we are to transform our built
environment. The Green Building Council
appropriate design, correct delivery during construction
and commissioning. Requiring NABERS for government
sustainable forestry certification, local biodiversity of Australia has long advocated that governments buildings and government tenanted buildings would be
(impacts and restoration) and social impacts to e.g. demonstrate visionary leadership by rating all the just one of the great outcomes from the implementation
ensure minimising carbon emissions doesn’t deliver buildings they own, develop or occupy with both Green of a government wide green procurement policy.
unwanted impacts elsewhere in the supply chain. These Star and NABERS ratings. By communicating successes,
Positive Development metrics will help us understand challenges and learnings with case studies, local
and measure the holistic impacts of products and businesses can understand the value and importance of


123 Albert St

{
Ian Klug is a Fellow of the Institute of Chartered Accountants in
Australia, Chairman of Brisbane Marketing and the Lord Mayor’s
Economic Development Steering Committee. He is also a
Director of the Aboriginal Centre for the Performing Arts and
a Director of the Wide Bay Water Corporation where he also
sits on the Audit and Risk Committee. Ian is also Chairman of
Place Design Group. He is a former Partner of Pitcher Partners
Chartered Accountants (for 19 years) and was previously

{
Chairman of the Queensland Artworkers Alliance. Ian is also
currently a member of the Lord Mayor’s Business Round Table.

Since governments occupy such
Romilly Madew leads Australia’s peak industry association a large percentage of commercial
responsible for creating sustainable buildings and places
for everyone. Romilly is an experienced green building, buildings at federal, state and local
sustainable communities and cities advocate, both nationally
and internationally. level, their leadership is essential
Romilly chairs a number of influential task groups and steering
committees on the built environment. These include: Board in specifying efficient, productive
member of the World Green Building Council (WorldGBC)
and the Chair of the WorldGBC International Rating Tools and healthy space in their
Task group; Deputy Chair of the Australian Sustainable Built
Environment Council (ASBEC) and Chair of ASBEC’s Cities accommodation guidelines.
task group; Member of the Australian Government’s National
Urban Policy Forum, and the State of Australian Cities indicators
reference group; Member of the Australian Government’s
Department of Sustainability, Environment, Water, Population
and Communities Measuring Sustainability Roundtable;
Member of the Australian Government’s Department of Climate
Change and Energy Efficiency, Independent Expert Group on
the development of the Climate Futures Report; Founder and
steering committee member of the Built Environment Meets
Parliament (BEMP) initiative – an annual conversation with
government and industry at Parliament House.

{
David Baggs is CEO and Technical Director of Ecospecifier,
Global GreenTag® Program Director and President of ALCAS-
the Australian Life Cycle Assessment Society. He is an award
winning chartered architect, sustainability, energy-efficiency
and eco-materials consultant with over 30 years experience
in sustainable development and materials technology. Global
GreenTag® is a world first, life cycle assessment based product
rating and national Certification Mark that certifies some of the
world’s largest manufacturers’ products.


acknowledgments
SPECIA L THANKS
Brisbane Marketing is indebted to our special contributors for their generous involvement
with the Brisbane Economic Series, namely:
Paul Day, Head of Research QLD, Savills Australia.
Brian Noble, Partner, Clayton Utz Brisbane.
Richard Fairhead, QLD Existing Buildings Leader, ARUP.
Ian Klug, Chair, Brisbane Marketing.
Romilly Madew, CEO, Green Building Council of Australia.
David Baggs, Technical Director, Ecospecifer.

IMAGE CREDITS
Energex House images: Cromwell Property Group
123 Albert Street images: DEXUS Property group
512 Wickham Street, Fortitude Valley images: Green Building Council of Australia
Green Square North Tower images: Green Building Council of Australia
Santos Place images: Green Building Council of Australia
75 Denham Street images: Arup
One One One Eagle Street image: © Cox Rayner Architects
Mirvac School of Sustainable Development image: © Alan Jensen Photography

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Brisbane Economic Series Issue 3