Delivering Lasting Outcomes Through Energy Innovation

No two days for a Commercial Property Manager are ever the same, and in September of 2023, Civium’s Commercial Property Management team received a request from the new owners of a prime Phillip location. They wanted to reduce operational expenses while aligning with contemporary sustainability expectations as set by the ACT Government. The result was a strategic transformation of the 4,000m² net lettable area building, positioning the property as a competitive, sustainable choice for top-tier tenants.

The Catalyst for Change

In early 2024, the owners began lease negotiations with a high-profile, top-tier government tenant. One of the tenant’s key requirements was that the building meet the ACT Government’s policy for 100% electrification.

This policy marked the beginning of a series of targeted infrastructure upgrades to improve the building’s energy efficiency, reduce emissions, and boost tenant appeal.

Asset Upgrades

Gas Hot Water System Replacement

To meet electrification standards, the existing gas hot water systems were removed and replaced with energy-efficient electric units.

Solar Power Installation

Solar panels were installed to service the building’s common areas. This not only reduced reliance on grid electricity but also directly lowered operating costs. The owners also extended this initiative to a major tenant, offering solar as an incentive ahead of their lease renewal, significantly reducing their electricity costs.

Basement Lighting Upgrade

Previously operating 24/7, the basement lighting was overhauled, replaced with LED lights and connected to a sensor system to reduce energy usage.

EV Charging Provision

With more tenants now driving electric vehicles, trickle chargers were installed at selected power points in the basement. While not a direct cost-saving feature, it adds convenience for tenants and creates a small additional income stream for the owner.

Civium’s Role

While the building owners drove the research and long-term financial planning, Civium’s Commercial Property Management team was instrumental in facilitating the implementation of the upgrades. This included:

• Sourcing competitive quotes
• Coordinating contractors and suppliers
• Supervising installations
• Ensuring minimal disruption to existing tenants

The Results

Annual Energy Cost (Post-Upgrades):

$21,500 ($18,100 saving from previous year)

Total Capital Expenditure:

$121,300

Return on Investment (ROI):

14.93%

Implied Value Add (at 8% Cap Rate):

$225,000

With national corporations and government agencies increasingly prioritising energy efficiency and sustainability, the ability to meet these expectations is critical for commercial properties looking to lease.

Contact us to find out how our team can help your commercial building increase in value and reduce your capital expenditure.