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More green for Auckland – at a cost

More “green building” is one of the proposed rules in the Auckland draft unitary plan.

A new building 5000sq m or greater that is used 80% or more as an office must be designed and constructed to a minimum five-star level from the New Zealand Green Building Council Green Star Office Tool (2009).

The rule does not apply to extensions and alterations, or converting an existing building to office use.

If the building does not meet these requirements, the plan provides a set of ranked criteria for alternative assessment.

Colliers researchers suggest that this may see an increase in asking rents for tenants, developments just below the 5000sq m threshold and/or deferment of land value growth as the increased costs are possibly factored in by reduced land prices.

“However, if green buildings continue to outperform in an investment sense, the benefit of the five-star rating might be reflected in a tighter yield,” Colliers says.

Earlier this year developers told NZPI (February 5) costs associated with gaining green star ratings can be prohibitive.

ASB Bank head of property Derek Shortt told NZPI educated occupiers who focus on sustainability do not care about green star ratings. 

More by Chris Hutching for NBR NZ Property Investor

Comments and questions
1

Why go to all this trouble and expense? Someone decided Auckland wasn't expensive enough.