the „bottom line‟ to carbon abatement in construction and ...mail.seedengr.com/documents/Michael-Skelton.pdf · Step 2 - Cost Plan Source: Davis Langdon Research No. Description

the „bottom line‟ to carbon abatement in construction and existing buildings

Michael Skelton

Research and Knowledge Manager

Australia, New Zealand

Overview

New Builds • The Cost of „Green‟

• Reducing Embodied Carbon Existing Buildings

• Maximise ROI of Upgrades

• No Such Thing as a „Typical‟ Building

• “The Next Wave” Report

• Incentives to Retrofit

• Will the Carbon Price Incentivise?

Understanding the Market

Lack of New Office Stock

Source: Construction Forecasting Council

New Office Construction Volumes

Australia‟s Existing Building Office Stock

Comparative Commercial Sector Sizes

Tenant Drivers Differ Dramatically

Office41%

Shopping Centre

32%

Hotel27%

Total Market Size (m²)

Office 23,574,853 (NLA)

Shopping Centre 18,563,434 (GLAR)

Hotel 15,975,922 (GIFA)

Source: Property Council of Australia, Davis Langdon Research

Australian Property Investment Market

Source: RICS, Davis Langdon Research

Office,

$92.00bn

Retail,

$87.00bn

Industrial,

$52.00bn

Electricity Price Escalation – Operational Impact

-5%

0%

5%

10%

15%

20%

-5%

0%

5%

10%

15%

20%

Annual Change

10 Year Average = 6%

Source: Adapted from ABS 6401.0 (Australian Electricity Index)

20 Year Average = 4%

Forecast

What can we achieve? Existing Buildings are the Key!

0

5

10

15

20

25

Emissons (Mt of CO2-e per annum)

Total GHG from Office Sub-Sector

Estimated Tragectory if 20% of Existing Buildings <2.5 Star upgraded to 4.5 Star

Forecast

Source: Adapted from AGO 1999 & DEWHA 2009, Davis Langdon Research

The Cost of „Green‟ in New Builds Green Star and Embodied Carbon

Estimated Green Star Capital Costs

Source: Davis Langdon “The Blue Book”

Embodied Carbon

Davis Langdon Embodied Carbon Metric

Source: Davis Langdon Research

Davis Langdon Embodied Carbon

Metric

Life Cycle Assessment

Tool*

Inputs -Emission factors for key materials (Include raw materials, fabrication, transport, installation) - Location specific anywhere in Australia

CO2 Intensity of Buildings &

Infrastructure

*Customised for the Australian construction market by Davis Langdon

Inputs -Cost estimate data: Obtain quantities, volumes and areas of materials -Apply carbon conversion factors -Assess associated material impact (eg: aluminium window frames, steel stud framing)

Our purposed built tools measure the carbon impact throughout the

entire lifecycle of construction materials

Step 1 Step 2 Step 3

Step 1 - Life Cycle Assessment Tool


Step 2 - Cost Plan


No. Description Quantity Unit Rate ($) TotalBrought Forward 19,360

1 Concrete sealer to Plant Room 182 m2 25 4,550

2 Vinyl flooring 1,872 m2 85 159,120

3 Vinyl Flooring to Offices, Meeting Room 32 m2 85 2,720

4 Ceramic floor tiling to Cleaners Room 16 m2 380 6,080

5 Ceramic floor tiles to wet areas 232 m2 145 33,640

6 Vinyl flooring to Theatre Areas 159 m2 110 17,490

7 150mm high coved vinyl skirting 1,555 m 16 24,880

8 Ceramic tile skirting 427 m 38 16,226

9 Allow for matwell at entrances 1 Item 5,000 5,000

10 Allow for divisional strips, control joints etc 1 Item 15,000 15,000

11 Allow for feature floor finish 1 Item 10,000 10,000

Total 314,066

Ceiling Finishes12 Suspended plasterboard ceiling including framing, 248 m2 85 21,080

insulation and paint to wet areas

13 Mineral fibre acoustic suspended ceiling tiles including 2,300 m2 75 172,500

framing and insulation

14 Suspended plasterboard ceiling including framing, 182 m2 65 11,830

insulation and paint to Plant Room Areas

15 Villaboard soffit lining to roof including framing and paint 1,380 m2 85 117,300

finish

16 PC Sum allowance for feature ceiling to Lobby/Corridor 1 Item 20,000 20,000

17 Allow for bulkheads and coffers 1 Item 30,000 30,000

18 Allow for access hatches etc 1 Item 10,000 10,000

19 Allow for aditional acoustic treatment to Ceiling 1 Item 20,000 20,000

20 Allow for steel support to theatre lights 1 Item 10,000 10,000

Total 412,710

Step 2 - Carbon Assessment from Cost Plan


Component Quantity GHG emissions

C1 - 250UC73 as column 11.90t structural steel 44.9 t CO2-e

Set plasterboard bulkhead

Plasterboard

Furring channel

Top cross rail

Steel clips

Steel hanging rods

19.22t

21.28t

23.47t

0.28t

0.04t

plasterboard

galvanised steel

galvanised steel

galvanised steel

galvanised steel

06.7 t CO2-e

80.7 t CO2-e

89.0 t CO2-e

01.1 t CO2-e

00.2 t CO2-e

Aluminium framed window 343m2

Double glazed, 10mm,

laminated window

Aluminium framing

343m2

2.74t

window

extruded aluminium

Step 3 – The Results (Real World Case Study)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Material input by weight

Carbon contribution by material

Other 0.9% 6.5%

Plasterboard 0.6% 0.7%

Gravel and sand 7.0% 0.9%

Glass 0.9% 4.3%

Tiles 1.0% 0.8%

Timber products 1.0% 2.2%

Aluminium 0.3% 22.0%

Steel 4.2% 26.7%

Brick 0.0% 0.0%

Concrete 84.1% 36.0%

Results

- Current industry practice scenario

• 8,043 tonnes of CO2-equivalents

• 497 kg / m2

• Embodied emissions equivalent to 14 years of operational emissions

- Green Star scenario


• 461 kg / m2

• 7.3% reduction

- Industry best practice scenario


• 421 kg / m2

• 15.3% reduction

Step 3 – The Results (Real World Case Studies)


Why Focus on Concrete, Steel and Aluminum?


„Cradle-to-Gate‟ Measurement Material Contribution by Weight

Carbon Contribution by Material

Will the Carbon Price have an Impact on Incentivising the Market?

Cost Dilution Through the Supply Chain – „Typical‟ Office


Excluding Industry Assistance (94.5% in first year)

4.1%

2.47%

0.16%

2.0%

1.17%

0.09%

1.1%

0.66%

0.05%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Material Cost Material & Labour Total Build Cost

Concrete

Steel

Aluminium

Suppliers Contractors Developers

Carbon price dilution through the supply chain

0.23% 0.14%0.009%

0.11% 0.06%0.005%

0.06% 0.04%0.003%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%


Concrete

Steel

Aluminium


Carbon price dilution

through the supply chain

Without EITE Industry Assistance With EITE Industry Assistance

Cost Dilution Through the Supply Chain – „Typical‟ Office


With Industry Assistance (94.5% in first year)

4.1%

2.47%

0.16%

2.0%

1.17%

0.09%

1.1%

0.66%

0.05%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%


Concrete

Steel

Aluminium


Carbon price dilution through the supply chain

0.23% 0.14%0.009%

0.11% 0.06%0.005%

0.06% 0.04%0.003%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%


Concrete

Steel

Aluminium


Carbon price dilution

through the supply chain

Without EITE Industry Assistance With EITE Industry Assistance

Calculating Future Investment Decisions

Page 22


Existing Buildings Making Informed Investment Decisions to Maximise ROI

Typical Capital Cost Step Change

Base Building Office – Capital cost and emissions savings

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

0

50

100

150

200

250

300

350

400

450

500

2.0 Star 2.5 Star 3.0 Star 3.5 Star 4.0 Star 4.5 Star 5.0 Star

Cost Range GHG Saving (LHS) Mean Cost (RHS)


Baseline

kgCO2/m2 $/m2

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

CBD Tower Level 1 Level 2 Level 3

NPV of Investment -$19,000,000 -$15,000,000 $7,000,000

IRR of Investment 4.2% 5.1% 10.0%

Fringe High Rise

NPV of Investment -$11,700,000 -$2,650,000 $4,200,000


Suburban Office

NPV of Investment -$1,900,000 -$1,000,000 $200,000


Improvement Asset Study

Existing Buildings // Survival Strategies

Source: Property Council of Australia, Arup, Davis Langdon Research

Reducing Base Building Outgoings

However... „Typical‟ Doesn‟t Really Exist

Impact of existing condition – 1.5 to 4.5 Star Upgrade

Low Capex Required – Poorly Maintained but Good

Equipment

Building NLA 10,000 sq. m

Building Age 15 years

Base Building (Existing) 1.5 Star NABERS Energy

Base Building (Upgraded) 4.5 Star NABERS Energy

Green Power Included Yes (1 Star)

Total Capex $1,111,320

GHG Savings (Actual) 1,012 tonnesCO2/year

Equivalent Passenger

Vehicles

166

Building Class B-Grade

0

200

400

600

800

1,000

1,200

0.0

20.0

40.0

60.0

80.0

100.0

120.0

1.5 to 4.5 Star

Green Power

Energy Efficiency

tonnesCO2kgCO2/m²

Per YearHigh Capex Required – Well Maintained but Poor

Equipment

Building NLA 10,000 sq. m

Building Age 15 years

Base Building (Existing) 1.5 Star NABERS Energy

Base Building (Upgraded) 4.5 Star NABERS Energy

Green Power Included Yes (1 Star)

Total Capex $4,358,400

GHG Savings (Actual) 1,012 tonnesCO2/year

Equivalent Passenger

Vehicles

166

Building Class B-Grade

Evidence Based Decision Making Filling in the Gaps…

Retrofitting Existing Buildings – The Common Steps

• Location • Building Age • Building Area • Number of Floors • Tenancy Profile • Baseline Performance • Target Performance • Appropriate Initiatives

• Cost • Benefits

Previous Studies - Viewed in Isolation ‘Typical Buildings’

Might not be Suitable

“The Next Wave” Report

“The Next Wave” – Key Focus Areas

• Size (m2) and no. of storeys • Construction type • PCA Grade • Age • Ownership • Location • Tenant structure (single/multi-tenant, owner-occupied etc) • Typical energy/water consumption and GHG emissions • Retrofitting drivers and barriers • Retrofitting cycles and typical triggers • Rents and valuation impacts

All Office Buildings in Victoria:

Victorian Example – Total Office Stock

Number of Buildings Area of Buildings

City of Melbourne

18%

Metropolitan (not incl

CoM)65%

Regional17%

Victorian Office Market by Number of Buildings

City of Melbourne

46%

Metropolitan (not incl

CoM)45%

Regional9%

Victorian Office Market by GFA (m²)

105,940

110,804

119,115

124,117

126,611

153,670

195,029

397,049

407,806

555,447

598,073

604,951

1,019,670

5,298,443

Ballarat

Greater Bendigo

Moonee Valley

Greater Dandenong

Kingston

Glen Eira

Greater Geelong

Stonnington

Monash

Boroondara

Whitehorse

Yarra

Port Phillip

Melbourne

11,007

11,319

11,976

12,661

13,718

13,961

16,361

17,520

18,358

19,575

21,709

22,133

24,50226,739

27,178

28,337

31,749

36,426

37,655

39,625

46,701

48,949

55,515

60,759

61,282

61,616

64,969

68,717

79,253

79,377

81,552

82,625

88,563

96,865

99,399

Bass Coast

South Gippsland

Surf Coast

Cardinia

Moira

Glenelg

Horsham

Southern Grampians

Baw Baw

Colac Otway

Campaspe

Hobsons Bay

Wellington

East Gippsland

Wyndham

Warrnambool

Casey

Wodonga

Whittlesea

Yarra Ranges

Mildura

Manningham

Hume

Maroondah

Knox

Mornington Peninsula

Frankston

Banyule

Darebin

Brimbank

Greater Shepparton

Maribyrnong

Bayside

Latrobe

Moreland

498

547

548

947

997

1,097

1,444

1,494

1,544

1,695

2,043

2,093

2,444

2,789

2,892

3,940

4,112

4,486

5,837

5,838

5,982

6,086

6,127

6,283

6,534

6,581

7,583

8,566

8,781

9,523

West Wimmera

Golden Plains

Loddon

Hindmarsh

Queenscliffe

Pyrenees

Hepburn

Murrindindi

Yarriambiack

Strathbogie

Moyne

Towong

Indigo

Mansfield

Buloke

Alpine

Swan Hill

Gannawarra

Moorabool

Corangamite

Nillumbik

Central Goldfields

Mitchell

Mount Alexander

Wangaratta

Ararat

Northern Grampians

Macedon Ranges

Benalla

Melton

Office Area by Municipality


Market Clusters - Office Area by Municipality

Office Market by Area Segments

Example: Impact of Mandatory Disclosure


355

169

5537 31

15 13 4 7 0 4

0

50

100

150

200

250

300

350

400

450

No. of Buildings

GFA Range (m2)

Total Stock >1000sqm

2,000m²+ : 690 (Potential* Mandatory Disclosure Obligations)

9,499

7,245

2,922

1,405836 545 343

229 206 130 654

0

2,000

4,000

6,000

8,000

10,000

No. of Buildings

GFA Range (m2)

Total Stock <1000sqm

Buildings with Unclassified GFA

0 - 499m² : 21,907 500 - 1999m² : 2,107

Greater than 2000m2 = 690 Less than 2000m2 = 24,014

Historical Construction Trends to Determine Building

Types

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

0

1,000

2,000

3,000

4,000

5,000

6,000

GFA(m²)

No. ofBuildings

Number (LHS)

Area (RHS)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

m²

Construction Year

Premium

A Grade

B Grade

C Grade

D Grade

Market Segmentation by Building Grade Overview


0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000

NLA(m²)

Left Axis

025,00050,00075,000100,000125,000150,000175,000200,000225,000250,000275,000300,000325,000350,000375,000400,000

NLA(m²)

Premium

A Grade

B Grade

C Grade

D Grade

Right Axis

48,143

35,55032,452

24,814

13,0549,591

6,6786,1092,807 685 576 472

0

10,000

20,000

30,000

40,000

50,000

90,000

100,000

NLA(m²)

99,455

112,032

77,020 65,624

10,6298,602

8,117 4,158 1,628

0

50,000

100,000

150,000

200,000

850,000

900,000

NLA(m²)

861,509

218,322

176,763

28,184 12,815 2,731 823

0

50,000

100,000

150,000

200,000

250,000

1,200,000

1,250,000

NLA

( m²)

1,205,246

Market Segmentation by Building Grade Zoom-in on Particular Markets


A-Grade B-Grade

C-Grade D-Grade

Office Buildings By Use – Tenant Engagement Required

Source: Davis Langdon Research 0 100,000 200,000 300,000 400,000 500,000

Residential

Agriculture, Forestry and Fishing

Accommodation and Food Services

Administrative and Support Services

Retail Trade

Wholesale Trade

Arts and Recreation Services

Health Care and Social Assistance

Mining

Construction

Rental, Hiring and Real Estate Services

Electricity, Gas, Water and Waste Services

Manufacturing

Education and Training

Transport, Postal and Warehousing

Other Services

Information Media and Telecommunications

Public Administration and Safety

Financial and Insurance Services

Professional, Scientific and Technical Services

(m²)

Premium

A Grade

B Grade

C Grade

D Grade

Tenant Lease Term by Grade


0

2

4

6

8

10

12

Premium Grade A Grade B

Years

Low

High

0

50

100

150

200

250

Sole 2 to 4 5 to 10 11 to 20 Greater than 20

No. ofbuildings

Number of Tenants

Premium

A Grade

B Grade

C Grade

D Grade

Number of Tenants per Building

62,886 153,216 91,249 72,771 51,082

351,464

2,933,884

1,617,838 1,723,349

0

100

200

300

400

500

600

700

800

900

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

No. ofowners

NLA(m²)

NLA

No. of Owners

Ownership Type

Source: Davis Langdon Research 0

50

100

150

200

250

300

1 2 to 4 5 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51 to 60

No. ofBuildings

No. of Floors

Premium

A Grade

B Grade

C Grade

D Grade

Number of Floors per Building

Number of Floors by Grade – City of Melbourne

Number of Floors Premium A Grade B Grade C Grade D Grade

1 0 0 2 5 25

2 to 4 0 7 47 129 266

5 to 10 3 18 64 104 49

11 to 20 0 20 59 52 11

21 to 30 1 8 12 1 1

31 to 40 2 13 1 0 0

41 to 50 3 5 0 0 0

51 to 60 4 1 0 0 0

≥ 100 Buildings

50 – 99 Buildings

10 – 49 Buildings

≤ 0 Buildings

Number Buildings by Floors above Ground and PCA Grade

Legend

Greater Geelong41

Greater Bendigo24

Ballarat23

Latrobe21

Greater Shepparton

17

0

10

20

30

40

50

60

Million kgCO2

Greater Potentialfor EmissionsSavings

North and West113

South East141

City Fringe217

Outer East260

Inner East363

0

50

100

150

200

250

300

350

400

450

Million kgCO2


Regional Centre Office Market Emissions Metropolitan Office Market Emissions

Note: These are typical estimates of emissions for base building use only. Tenancy related emissions are not included here.

VICTORIAN OFFICE MARKET EMISSIONS

City of Melbourne

1,127Metropolitan

1,094

Regional Centres

126Other Regional90

0

200

400

600

800

1,000

1,200

1,400

Million kgCO2


GHG Emissions (Estimates)

Attributes Present in C and D Grade

Source: Wilkinson et al 2009

0% 20% 40% 60% 80%

Detached

Attached on two sides

Aged between 26 and 50 years

Irregular plan shapes

Multiple service core locations

In private ownership

Office land only

Without heritage listing or overlay issues

Brick facades and envelopes

Source: Wlkinson, 2009

4

6

8

10

12

14

16

18

20

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ºC

Ballarat Bendigo Geelong Horsham Melbourne Mildura Portland Sale Shepparton Swan Hill Wodonga Warrnambool

10

20

30

40

50

60

70

80

90

100

110

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

mm

Ballarat Bendigo Geelong Horsham Melbourne Mildura Portland Sale Shepparton Swan Hill Wodonga Warrnambool

Mean Monthly Rainfall

Source: Wilkinson et al 2009

Climatic Conditions – Impact on Retrofit Initiatives

Mean Monthly Temperature

Selecting the Appropriate Initiatives

Source: Davis Langdon, AECOM

0 5 10 15 20

Adaptive thermal comfort control

Economy cycle

Demand ventilation control

Building Sustainability Committee

Variable speed drives on pumps and fans

Update operating/maintenance manuals

Refrigerant leak detection

Fire hydrant test water tank

Low irritant non-chemical cleaning products

Clean ductwork

Time switches

Automatic refrigerant pump down

Increased outdoor air

Supply chain management

Replace belt drives with direct drives

Improve light switch labelling

Flow regulators

Low flow/dual flush toilets

Air cooled plant

Minimise PVC

Upgrade of roof insulation

Low VOC products

Internal shading

Lighting occupancy sensors

Solar film installation

Widen temperature set points

Mixed mode ventilation

Heat recovery on HVAC

Use HHW for zone reheat

Rainwater capture

Filters on stormwater

Solar boosted domestic hot water

Individual light switches for individual areas

Temperature sensors

Urinal flush controls

Stormwater detention

0 5 10 15 20

Photovoltaic

Wind power

Acoustic attenuation for …

Increase glazing performance

Skylights

Light shelves

Reduced office lighting zones

Power factor correction

Waterless urinals

Real time public transport …

Bicycle storage and shower …

Internal Plants

Upgrade accoustics

Dedicated printer exhaust

Daylight sensor control

Cogeneration plant

Trigeneration plant

CHW Temp reset

Ground source heat …

Temperature server rooms

Communication with community

Accessible open space

Green facade

Daytime cleaning service

Paint roof with reflective colours

Occupant master isolation switch

Insulation audit

Night cooling

Dedicated park for carpooling

Grey water plant

Black water plant

Green roof

Recycled concrete

Sustainable timber

0 5 10 15 20

Building management team onsite

Asbestos survey/removal

Energy audit

Controls audit

Recommission existing plant

BMS installation upgrade

Waste management plan

Water leak detection

High frequency ballasts

Comprehensive preventative …

Programme lighting control system

Low maintenance, durable …

Water/Energy/Waste targets

Electric, water and gas …

Environmental Management …

Gas over electric central hot …

Waste separation and recycling …

Centralised waste

External lights on movement …

Low flow showerheads

Water efficient appliances

External Shading

External window shading

HVAC redesign (chilled beams)

Update/Create Builder user guide

Building air tightness

Natural ventilation over mechanical

HVAC zone control

Lighting upgrade

Chiller replacement

Drought resistant landscape design

Cooling towers with a minimum of …

Replace HFC and HC refrigerants …

Water Audits

Owners Tenants FMs Maintenance

Targeted Campaigns Achieving the Highest ROI

Distribution of Metropolitan and Rural Office Buildings

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

No. of buildings

GFA(m²)

Construction Year

GFA (m²) - Rural

GFA (m²) - Metropolitan*

Number of Buildings - Metropolitan*

Number of Buildings - Rural

Target Market

Low Grade Office Buildings by Construction Year – City

of Melbourne

0

20

40

60

80

100

120

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

No. ofBuildings

NLA(m²)

Construction Year

B Grade

C Grade

D Grade

Total Number of Buildings (RHS)

TargetTarget Market

Typical Construction Types Age of

Building Attributes Examples

<1890 - Designed for natural ventilation

- Thick, solid, masonry walls

- Higher thermal mass

- Higher infiltration

- Lower rise

- Lower glass area

- More cellular in internal layout

- Lower occupancy density

- Retrofitted with refrigerant based or water based conditioning and

heating system (fan coil units).

- 40m height restriction introduced in the mid 1920s

Parliament House, Treasury, Melbourne

Town Hall and GPO

1890-1920 State Library, QV Hospital and Flinders

Street Station

1920-1930 Capitol House. Myer, AMP House and

Manchester Unity building

1930-1955 RMIT Buildings 5, 6, and 7, Russell St

Police Headquarters, Century Building,

FAI Insurance Building, 412 Collins Street

1955-1980 - Standardised aluminium curtain walling begins to appear

- Abolition of 40m height limit and the introduction of plot ratios

- Commercial buildings were sealed and the reliance on artificial climate

and comfort control began

- Constant volume AC systems

Royal Insurance, BP House, ICI House,

369 Collins Place and BHP House

1980-2000 - Improvements in glass performance and insulation

- Automatic controls

- VAV systems

Rialto Towers, Melbourne Central Tower,

Bourke Place and 101, 530 and 120

Collins Street

2000- - BCA Section J

- ABGR

- Green Star

- Climate Change

CH2, BHP Headquarters, Southern Cross

Station

Distribution by Area

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

No. of buildings

GFA(m²)

GFA Range (m²)

Total GFA of Buildings

Number of Buildings (RHS) Target Market

0

200

400

600

800

1,000

1,200

1,400

1,600

0

50,000

100,000

150,000

200,000

250,000

No. of buildings

GFA(m²)

GFA Range (m²)

Total GFA of Buildings

Number of Buildings (RHS)Target Market

Metropolitan

Rural

Focus on Key Markets

0

100

200

300

400

500

600

700

800

0

50,000

100,000

150,000

200,000

250,000

No. ofbuildings

GFA(m²)

Total GFA

No. of Buildings (RHS)

Top Regional CentresRural Regions minusTop Regional Centres

Understanding Tenancy Structures and Building Types

0 1,000 2,000 3,000 4,000 5,000 6,000

North and West

City Fringe

South East

Outer East

Inner East

Single Occupancy (AVPCC 220)

Low-Rise (AVPCC 221)

Multi-Level Office (AVPCC 222)

0 100 200 300 400 500 600 700 800

Latrobe

Greater Shepparton

Ballarat

Greater Bendigo

Greater Geelong

Single Occupancy (AVPCC 220)

Low Rise (AVPCC 221)

High Rise (AVPCC 222)

Metropolitan

Rural

Incentives to Retrofit

1 Government Leases 2 Financial Incentives 2 Human Factor

Government Leased Area

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

NLA

Other

State and Territory (Leased)

Commonwealth Government (Leased)

26% Government Leased

Source: Government Property Group, Davis Langdon Research

Where are Incentives Required

1

4

65

Larger Incentives RequiredHigh CO2 AbatementHigh Cost of AbatementLow Level of Industry Investment without Grants/Green Depreciation(Investment and Awareness of Cost to Industry should be Focussed Here)

Minimal Incentives RequiredLow CO2 AbatementNegative Cost of AbatementHigher Levels of Industry Investment(Government and Industry Commentators Focus Too Much on These Figures)

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

Width Indicates Size of Abatement(Tonnes CO2 Over Time Horizon)

23

78

10

9

11

12

Co

st o

f Ab

atem

ent

Co

st o

f Ab

atem

ent

Value for Money from Grants/Accelerated Depreciation/etc

Maximised by Targeting These Initiatives

Employee Remuneration and Benefits

63%

Training 2%

Other Expenses10%

IT Equipment1%

Depreciation and Amortisation Expense

1% Telephone and Data1%

Travel and Motor Vehicle3%

Fees13%

Rent/Outogings/Fitout(Ex Electricity)

6%

Electricity0.2%

Business Expenses - Tenants

Tenant‟s Focus ???

Thank You

Michael Skelton

[email protected]

Documents

the „bottom line‟ to carbon abatement in construction and ...mail.seedengr.com/documents/Michael-Skelton.pdf · Step 2 - Cost Plan Source: Davis Langdon Research No. Description