5 Star Tenancy Space Case Study
1 Market Street, Sydney is a 16 year old, 34 storey office tower situated in the western corridor of Sydney's CBD near Darling Harbour. When 4,300m2 became vacant recently we decided to test the demand for energy efficient office space in the leasing market. For a prospective tenant looking at leasing the space, this meant that they could move in knowing that the building blocks for a highly energy-efficient tenancy were already in place.
Lighting typically represents 60% of a tenant's electricity consumption. It therefore represents the largest opportunity for energy savings. To help reduce our prospective tenant's cost of occupancy Investa installed:
- high-efficiency, low-glare general office lighting; and
- occupancy-based lighting controls which will ensure that lights are turned off when not required, provide daylight linking, and be able to switch off supplementary air conditioning units when not in use.
The lighting and controls installation to the tenancy provide the base for an energy efficient office and would enable a new tenant to sign up to a Greenhouse Guarantee with the majority of the work completed already.
The NSW Independent Pricing and Regulatory Tribunal (IPART) signed a heads of agreement to take up approximately 1,600m2 of the new space. According to Leasing Agent Mark Semple of DTZ Pty Ltd, ‘Investa's approach to this space was one of the primary contributing factors in the lease of this space. When I discussed what Investa was going to provide the tenant, I could see the interest increase immediately’.
Meryl McCracken of IPART said, ‘IPART is keen to demonstrate its commitment to the environment and reducing greenhouse gas emissions; we saw the '5 Star Tenancy Space' and other opportunities provided by this lease deal as an effective way of achieving this. We also saw other benefits in signing up to a Green Lease supported by their plain-English Green Lease Guide which will assist us in setting the principles behind our new office space’. In this way, Investa has successfully anticipated the market.
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