Recent research (undertaken by the Universities of Western Sydney & Maastricht in the Netherlands) has been released by the Australian Property Institute & Property Funds Association of Australia, under the title of Building Better Returns.
The report reveals that a 5-star NABERS Energy-rated building would provide a 9% value premium overall, compared with buildings without any ranking.
Interestingly, there was no value premium found for Office buildings below a 3-star NABERS rating. In fact, rentals within these lower-rated buildings appear to be discounted by between 6% to 9%, compared with 5-star alternatives.
But that’s not all bad news for Landlords — because when times get tough, tenants tend to gravitate towards cheaper space.
Plus, with very few new 5-star offerings currently in the pipeline, these lesser-rated buildings will see significant rental growth over the next 3 to 4 years.
Bottom Line: If you … do your homework, seek good professional advice and “cut your cloth” to fit within your budget … then, you can still make some serious gains over the next five years.