Power Factor Correction on commercial office buildings can achieve significant savings to your energy costs and reduce the demand for costly energy upgrades. Norman Saadrecently reviewed the energy demand of a new building within his portfolio and found that with the simple installation of a power factor correction unit the power factor would rise from .79 to .99 and would save an estimated 46.9 KVA. “in simple terms this means a saving of almost $6,000 per annum based on the power factor demand on our current electricity charges”. Norman also negotiated a rebate on the saving achieved from the energy provider resulting in a payback on the installation cost of only 8 months.
Henderson & Horning Director Billl Rees said “To identify your power factor correction, it is only a matter of reading your electricity bill carefully, as this contains a power factor penalty for peak load measured in KVA, the PFC can help you reduce such surcharges”.
The Power Factor is, roughly speaking, a measure of what proportion of the total power supplied to your business is actually used by the equipment.
The aim is to keep the power factor as close as possible to 1, as power factor penalties cut in if it drops below 0.85.
The PFC Equipment traps the reactive power by installing “banks” of capacitors. The capacitors store the reactive power and supply to equipment when it is needed.
Apply to your energy provider to have a complete energy audit done for your business, which also addresses your power correction requirements
These audits will generally identify cost effective savings opportunities.
With the Building Energy Efficiency Disclosure Bill now before the Lower House and would appear poised to pass, it is an opportune time to review some major changes and challenges Commercial Office stakeholders are soon to face.
The Commercial Building Disclosure program aims to reduce Carbon emissions by influencing market behaviour by :-
- Enabling potential purchasers or Lessees to consider energy efficiency as part of their decision making process
- Assit to remove market barriers and promote energy efficient buildings
The program will initially capture commercial office buildings and tenancies with a Nett lettable Area (NLA) over 2,000m2. At this point it will exclude Strata Title offices or leasing with a term certain 12 months or less.
The program will see the creation of a Register of Building Energy Efficiency Certificates (BEEC) that must be issued prior to affected building being offered for sale or lease.
BEEC’s will be based on the NABERS Energy base building rating however will exclude the use of Greenpower meaning that much of the Institutional Property Owner community who currently purchase Greenpower to inflate their base building rating will now need to correctly address building efficiency.
BEEC’s will also see the introduction of an assessment of the energy efficiency of lighting that is expected to remain in the office space leased or sold together with a guidance document on how to improve building energy efficiency.
Guidance documents will identify opportunities for owners and tenants to :-
- Develop an energy policy and action plan
- Review and improve on building management practice
- Improve of lighting, HVAC, waste and water management
- Raising staff awareness to best practice in energy management on a micro level
The Bill in its current form see’s Civil penalties of up to $110,000 for every instance of non disclosure so the Commercial Office sector is set to see a major shift in Building management practice.
Bill Rees and Jon Ryan of Henderson & Horning have been at the forefront of changing property management practice and were early to adopt to a green building management.
323 Castlereagh Street, Sydney
The Introduction of the Building Energy Efficiency Disclosure Bill in March 2010 introduces mandatory disclosure of commercial office building energy efficiency and will have far reaching consequences for Landlords, Property Managers and Agents.
The Bill when in acted will supplement the National Greenhouse and Energy Reporting Scheme and Commonwealth, State and Local Government policy together with some Corporate’s who now are embracing NABERS or Green Star ratings.
The NSW Government’s current policy for owned or tenanted office building over 1000m2 requires premises to achieve and maintain a NABERS rating of 4.5 stars.
Other key requirements for new leases and renewals include the adoption of Green Lease Schedule. These schedules aim to in force environmental sustainable operation of Government tenancies while also protecting the Tenants indoor amenity.
The NSW Governments policy is setting the Green bar higher then what is proposal in the Building Energy Efficiency Disclosure Bill which in its current draft will target buildings with a net lettable area of more than 2000m2.
The Bill will require a building owner and or tenant to disclosure a buildings energy efficiency before it is offered for sale or lease.
An online Building Energy Efficiency Register will be created together with a requirement to include a buildings energy efficiency in any advertisement. Failure to hold a current certificate on the Register when offering to lease or sell buildings will expose Landlords, Tenants and Agents to heavy penalties.
The Bill provides for a transition period of 12 months from implementation of the ACT.
Building Energy Efficiency Certificates are now a corner stone of commercial property transactions and Landlords and Agents need to promptly prepare for the greening of the office market.
Henderson & Horning have recently listed a superbly fitted out commerical office floor in the financial core of the Sydney CBD.
Level 8 , 23 Hunter Street comprises an impressive reception, 2 boardrooms with corporate entertainment facilities, 3 meeting rooms, 5 executive offices, a large open plan area, tearoom and communications room.
The fitout is of exceptional high quality and the floor has excellent natural light on two sides.
23 Hunter Street is a prominent corner office building on the south western corner of Hunter and Pitt Streets, diagonally opposite the Renaissance Hotel and directly opposite Australia Square. Wynyard Station is situated beneath the building and the Australian Stock Exchange is only a 5 minutes walk away.
This boutique commerical office building has an impressive ground entrance foyer which was recently upgraded and the building is serviced by 3 passenger lifts.
Quality tenants/owners include Merchant Banks, Lawyers, Accountants and Fund Managers.
The floor comprises circa 331 square metres and the asking rental is $620 per square metre gross. The Landlord will consider providing a reasonable incentive to an incoming tenant.
Please contact Will Mulivhill or Suzi Trajcevski on 02 8217 8888.
The commercial strata market in the Sydney CBD has revived after a very quite first 2 quarters. Actually it was the quietest I have experienced since arriving in Australia in 1994.
View from 187 Macquarie Street, Sydney
July saw a market change and I sold a whole commercial strata floor at Park House, 187 Macquarie Street for $3.2M. It was one of the highest sale price for an entire commercial strata floor along Macquarie Street and the sale demonstrates the strength of the purchase demand from medical specialists for commercial strata in Sydney’s premier medical district as our marketing produced a number of additional buyers for this location.
We are marketing a number of smaller suites for sale and for lease along Macquarie Street which would suit small medical specialists and psychiatry practitioners.
The increased activity is not only confined to the owner occupier market. With a substantial investment sale at 23 Hunter Street, selling above $2M and showing a yield of 7.7%. The whole floor was superbly fitted out and leased on a 4 year lease term from the date of settlement. The sale demonstrates the demand for a secure commercial strata investment with a reasonable return.