Guide to Environmental

Performance Clauses
Commercial Property Leases
Australia
Foreword Copyright
Published by RICS Oceania (First Edition
This is the first time a guide to Environmental Performance 2009) RICS Oceania, Level 16, 1 Castlereagh
Street, Sydney, NSW, 2000.
Clauses in Australian commercial property leases has been No responsibility for loss occasioned to
presented to the market. RICS is keen to lead the way in any person acting or refraining from action
as a result of the material included in this
developing guidance on Environmental Performance for publication can be accepted by the author or
buildings in the property industry, and is also aware that this publisher.
© Copyright RICS February 2009. Copyright
is an area that has developed rapidly over the last few years, in all or part of this publication rests with
and will continue to do so. This guide is not comprehensive, RICS, and save by prior consent of RICS,
no part or parts shall be reproduced by any
but it is an initiation of a much needed process. RICS intend to means electronic, mechanical, photocopying,
develop it further and welcomes industry feedback to enable an recording or otherwise, now known or to be
devised.
updated edition in the near future.

Please send any comments and suggestions to info@rics.org.au Disclaimer

This document is a guide only. It is not
John Goddard FRICS intended to be an instruction manual, nor a
Chairman, RICS Oceania Sustainable Steering Group detailed step by step process which must be
followed, but rather a guide to the principles
of Environmental Performance in respect of
RICS gratefully acknowledges the work of the the management and occupation of buildings.
RICS Oceania Green Lease working party in the This guide does not provide legal advice and
is general in nature. You are advised to take
drafting of this guide: legal advice from a professionally qualified
legal advisor.
John Goddard FRICS, J Goddard & Co
Judith Knott MRICS, JCK Consulting
Melinda Graham, Thomson Playford Cutlers
Tony D’Agostino, Herbert Geer
Simon Harrison, Herbert Geer
Contents Page
1. Purpose 2

2. Preamble 4

3. The Proposal for Lease Documentation/House Rules 8

4. Managing and Monitoring the Building 10

5. Standards for the Building – Benchmark Targets 12

6. Environmental Performance Criteria 14

- Management 15
- Energy 15
- Water 15
- Transport 15
- Materials 16
- Emissions 16
- Waste 16
- Indoor Environment Quality 17

7. Examples of Environmental Initiatives 18

8. Energy Performance Adverse Impact Guidelines 22

9. References 25

1
1.Purpose
RICS recognises the
impact of buildings
and their use on the
environment and on
their occupants.
The built environment is one of
the most critical areas in which we
can reduce man’s impact on our
environment. RICS, being the world’s
largest property and construction
organisation, has the opportunity
and obligation of using its reach and
influence to bring about some of the
changes that are needed.

2
The agreement of a lease between a landlord and Due to the environmental performance of
tenant provides both parties with the opportunity buildings constantly changing and evolving, this
to set standards and achieve their environmental guide is not to be perceived as a complete guide,
goals and aspirations; from the landlord’s point of nor is it designed to be used in a prescriptive
view in ensuring that the tenant uses the building manner. All buildings are different, all landlords
the way it has been set up; and from the tenant’s and tenants have different needs. In each case
point of view ensuring that the building is run to the parties will need to assess their needs, likely
maintain good standards of resource efficiency future requirements and the physical restraints
and indoor health, and from the environment’s of the building in which they will operate to arrive
point of view by encouraging the parties to work at an optimal outcome. Not all clauses will be
together to reduce their impact. appropriate in all cases, other measures may be
required for some buildings.
The expression ‘Green Lease’ has been used
to cover a range of topics from prescriptive Environmental standards will evolve. Landlords
energy standards to guidance in achieving better and tenants should understand that they must
standards of environmental performance when take responsibility for their environmental
scoping and managing a fit out. In preparing performance and continue to raise their
this document we have focused on the clauses standards.
in a lease that affect the broad environmental
This document has been prepared in parallel
performance of the leased premises as part
with the RICS Guide to Greening Make Good.
of the whole building in which it operates.
The RICS Guide to Greening Make Good has
Hence we refer to these as Environmental
been prepared to address and reduce the waste
Performance Clauses.
that so often occurs at the end of a lease when
This guide seeks to address some of the the tenant’s fit out is demolished and dumped,
asymmetry of the different drivers the landlord together with the implications of its embodied
and tenant have by providing guidance on some energy and any chance of its potential reuse.
of the tools and measures available. It also The Guide to Greening Make Good not only
seeks to provide some education in the scope of contains advice on how the waste may be
environmental measures that can be addressed in reduced, but also advice on fit out reuse, when it
commercial buildings. is to be removed and how to minimise the impact
of the process.

3
 2.Preamble
Landlord’s are
increasingly making
“green buildings”
available to the market.

A landlord’s commitment to good

environmental performance of a
building provides a platform from
which a tenant can also achieve a
good environmental performance of
its fit out and in turn positively impact
its wider business operations.

4
Similarly, a lack of commitment by a tenant to The areas in which buildings need to control
achieving a good environmental performance from or reduce their environmental impact generally
its fit out and operations, can negatively impact a include the following:
landlord’s ability to achieve a good environmental
n Energy
performance of a building and importantly other
occupiers, to whom it may or may not have made n Water
commitments.
n Waste
Where the interests of the landlord and the tenant - Reduction
are aligned to achieve a good environmental - Separation
performance for a building, this mutual interest n Indoor Environment Quality
and shared goal are best served by negotiations - Air Quality and control
around the lease, and inserting appropriate - Light - Daylight and Artificial
provisions in the lease itself, to provide a structure - Pollutant control
and framework to manage the parties’ interests
n Use of materials
and obligations.
- To avoid introducing pollutants into the
The unique requirements of each tenant and the building
unique characteristics of each building mean that
- To reduce the environmental impact of the
the industry is not well served by a prescriptive
materials used in the building
approach to the drafting of the relevant clauses,
either in a heads of agreement or the lease itself. n Management
Preferably, the landlord and the tenant should - In the maintenance of the building
be seen to openly disclose their offering (in the - In the cleaning of the building
case of the landlord) and the needs or desires (in - In the choice of consumables it uses
the case of the tenant), and to acknowledge that
the ability of each party to achieve and maintain
its goal is dependent to some extent upon the
actions of the other.

5
2.
In support of this idea, the Green Building Council Landlords could invite prospective (or existing)
of Australia (GBCA) in its Green Star Office tenants to subscribe to these green provisions/
Interiors Tool, encourages the landlord to manage building rules and include them in their leases.
the building to good environmental standards
Having lease terms or building rules that meet
and awards [3 unweighted] credit points towards
the Green Star Office Interiors Tool requirements
the tenant’s rating if there is a base building
may enhance the marketability of a building, as
commitment to good environmental management.
they could assist prospective tenants to achieve
There are then a further [3 unweighted] credit
a Green Star rating for their fit out, as well as
points available towards the tenant’s rating if
providing tenants with a further step along the
they also make a commitment to good building
road to their own good corporate governance and
performance. (See the GBCA’s Office Interiors Tool
sustainability.
for more explanation).
The Green Star standard provides a
The first step should be to include obligations on
straightforward process. Ratings do not have
the tenant to comply with a specific set of rules
to be obtained to achieve the benefits, but the
to enhance the environmental performance of
achievement of an environmental rating is a
the building. This could be in the lease or in the
demonstration of an organisations commitment
building rules that form part of the lease, or are
to good environmental standards. Setting up
attached to it. If this complies with the GBCA
a system in a building that assists tenants to
Interiors tool, then the tenant will be awarded
achieve Green ratings is a clear sign of the
credit points towards its interiors rating.
building’s commitment to good environmental
For an existing building, which is looking to standards and a bonus to the tenant that wants to
improve its environmental performance, there have a Green rated tenancy.
may initially be different provisions/building rules
for tenants who are committed to achieving
good environmental performance, compared
with tenants who signed earlier leases. As other
existing tenants go “Green” and new ones
come to the building, the new Environmental
Performance Clauses would be used.

6
Not all sections of this Guide need to be used The Energy Performance Adverse Impact
in every case, the information can be used for Guidelines section is included to assist
general compliance or to highlight where specific where buildings are set up to achieve certain
performance is required. This Guide contains the environmental standards and as a result, tenants
following sections: need or would benefit from guidance as to the
n The Proposal for Lease Documentation / actions that they might take that could have an
House Rules adverse impact on the environmental performance
- This section describes a suggested process of the building.
for managing and reporting on the building
and tenants performance that can also achieve
credits towards a tenant’s green rating.
n Managing and Monitoring the Building
- This section suggests a structure for running
regular meetings, reporting building and tenant
performance and working together for good
environmental performance.
n Standards for the Building - Benchmark
Targets
- This section contains an example of building
environmental benchmarks that can be
incorporated into agreements.
n Environmental Performance Criteria (EPC)
n EPCs are used to detail specific standards of
environmental performance.
n Examples of Environmental Initiatives.
n Environmental Initiatives are specific obligations
or works that will be carried out.
n Energy Performance Adverse Impact
Guidelines.

7
3. The Proposal for Lease
Documentation / House Rules

How the building is The Lease, or Building Rules (etc) that form part of
the lease documentation, should include a section

to be managed
called “Environmental Management”.
Within the section there should be a sub-section
setting out the landlord’s commitment to the
environmental management of the building called
The following is an example of how “Building Environmental Management”.

we believe the Lease documents This section would include a sub-section for
tenants “Commitment to Building Performance”
could be set up to achieve good which would set out the tenant’s obligations in
environmental standards. The relation to the environmental performance of the
circumstances will differ for all building.

buildings, but the principles are to Note: By setting up the building’s standards to
meet those required by an environmental rating
have, and be able to demonstrate, system, credit points could be available by
good environmental management complying to the building’s standards.
practices agreed between the For example, the Green Building Council of
landlord and tenant. Australia’s Office Interiors rating tool sets
standards for:
n Building Environmental Management for a base
building; and
n Commitment to Building Performance for
occupiers.
If their standards are met, credit points may
be available towards the environmental rating
standard for the tenancy.

8
Under Green Star Office Interiors, the obligations on For the tenant to achieve maximum credit points
both parties should reflect the Credit Criteria, this is from Eco-4, the tenant would be required to
set out in Eco-3 (Landlord’s Commitment) and Eco- undertake:
4 (Requirements of the Tenant). The landlord should
n energy monitoring (minimum quarterly) and
show they had entered into binding contracts with
energy consumption reduction targets;
third party service providers for these services, the
n waste reduction/recycling monitoring (minimum
tenant would be bound by the Lease and associated
quarterly) and landfill disposal reduction
documents.
targets;
The following is extracted from the Green Building
n water monitoring (minimum quarterly) and
Council of Australia Green Star Office Interiors v1.1
water consumption reduction targets;
(please see Green Star – Office Interiors Technical
n use of cleaning products that have a low
Manual and other GBCA information for full details).
environmental impact;
For the tenant to achieve maximum credit points from
n the future procurement of consumables (i.e.
Eco-3, the landlord would be required to undertake:
paints, light fittings, ceiling tiles, flooring, etc)
n energy monitoring (minimum quarterly) and that have a low environmental impact.
energy consumption reduction targets;
If the tenant arranged the cleaning of their own
n waste reduction/recycling monitoring (minimum premises they would need to provide a copy of a
quarterly) and landfill disposal reduction written agreement with the cleaners that they will
targets; use products with low environmental impact.
n water monitoring (minimum quarterly) and
water consumption reduction targets;
n regular maintenance of HVAC&R systems
in accordance with AIRAH DA19 HVAC&R
Maintenance Guideline;
n use of cleaning products that have a low
environmental impact;
n the future procurement of consumables (i.e.
paints, light fittings, ceiling tiles, flooring, etc)
that have a low environmental impact.

9
4. Managing and
Monitoring the Building

Landlords, property
managers and tenants
are increasingly aware
that by working
together their joint
efforts can produce
greater environmental
impact reduction than
by working individually.

In this section we provide suggestions

on how landlords and their tenants
can work together using their greater
combined leverage.

10
However, achievement of these shared goals These meetings should be held at regular intervals
usually requires greater transparency on both (say, quarterly) and the parties should agree to
sides so that the achievements can be used commit to an agenda which covers discussion on:
as good examples of what works, and the n the environmental performance of the building
less successful initiatives can be reviewed and in accordance with Environmental Performance
improved upon. Criteria and benchmark targets;
In most instances it will be the landlords or their n assistance and guidance to improve the
agents who set up the systems, but it will be the environmental performance of client’s
tenants who use them and will be most affected operations within the building;
by them. n ways the landlord and tenant can optimise the
There should be agreement in the Lease building’s and their combined environmental
documentation for regular meetings of an performance through collaboration;
Environmental Management Committee, the n initiate improvement in environmental
agenda and intervals for the meetings should performance as standards change;
be agreed. The tenant and the landlord should n review upgrades and improvements planned,
commit to forming this committee and providing faults, occupational health and safety and
representatives to it. other requirements.
Environmental Performance Criteria or measures
can include (but may not be limited to):
n energy efficiency;
n water efficiency;
n waste efficiency;
n indoor Environmental Quality;
n transport;
n emissions;
n management systems;
n materials;
n building efficiency;
n temperature and comfort conditions.

11
5. Standards for the Building
Benchmark Targets

This section may be completed where specific

targets are required for the performance of the
building. It is suggested that targets are only included
where there is a specific requirement, in which case
there should be reciprocal obligations on each party
thereby ensuring that there is a real need for specific
performance in that area.
Use the design specification where the building
is either not complete or being upgraded to new
standards. RICS suggest that this should be a Green
Star standard or similar aspirational rating. The Green
Star environmental rating system for buildings was
developed by the Green Building Council of Australia.
The Green Star suite of rating tools includes tools for
rating base buildings and for rating office interiors.
www.gbca.org.au
The standard to which the building is to be
maintained should be entered in the second column
on page 13. We suggest that this should be a
NABERS standard or similar performance rating.
(NABERS is a voluntary national program for existing
buildings that is designed to enable building owners,
managers and tenants to benchmark the environmental
impacts of operational performance and get market
recognition for their performance. It currently covers
energy, water, waste and IEQ (Indoor Environment
Quality)), it is administered by the Department of
Environment and Climate Change NSW.
www.nabers.com.au

12
Other required environmental performance criteria;
Example as follows, the points or ratings should be included to suit each particular circumstance:

Category Design Ongoing

Energy Green Star Office Design and As-Built tool: Ene 19 points NABERS Energy 4.5 star

Water Green Star Office Design and As-Built tool: Wat 9 points NABERS Water 2.5 star

NABERS Indoor
IEQ Green Star Office Design and As-Built tool: IEQ 16 points
Environment Quality

Waste Management NABERS Waste 3.5 star

Make Good Refer RICS Greening Make Good Guide (2009)

Management Systems Green Star Man 5 points

Building Green Rating 5 Star Green Star

The benchmarks set the overall standards.

Ratings however are made up of performance across a range of criteria, for example the Green Star system
contains the following categories; Emissions, Management, Indoor Environment Quality, Energy, Water,
Transport, Materials, Land Use & Ecology and Innovation.
At the time of writing there is no environmental rating system for existing buildings in Australia.
For technical building performance standards you may also wish to refer to the Property Council of
Australia’s - A Guide to Office Building Quality (2006).

13
6.

Environmental
Performance Criteria

This concept is for preparation and inclusion Minimum standards or hurdles may be set in
of a checklist and examples of initiatives that certain areas. Note, these should not necessarily
could be agreed for the ongoing environmental be restricted to the categories within the various
performance of the building. rating systems, but should be chosen to suit the
specific performance requirements or standards
In all cases environmental performance clauses
of each party.
need to be drafted to meet the particular
requirements and circumstances set by the The following examples are intended to be
building, the owner and the lessee. considered by the parties to set the standards for
the way the building is managed to achieve the
Tenants may have specific performance
benefits that a building with good environmental
requirements that are taken from a range of
and sustainable standards should provide and
environmental rating tools. This section is not
the topics on which the parties would report on
designed to replace the tenant’s check list for the
their performance to each other. They should
technical performance of a building but should be
be seen as being additional to the initiatives and
read in conjunction with a technical guide, such
measures contained in the rating systems, and
as the Property Council of Australia’s - A Guide to
used to address the specific requirements of a
Office Building Quality (2006). These can be used
particular user. It would be unlikely that buildings
to assess the performance of a building under
would achieve high performance in all areas.
review and also to set standards required from a
building’s performance.
Tenants should familiarise themselves with the
way the rating system works and how credit
points are achieved. They should pay particular
attention to the categories that concern them
to ensure that the building performs, or will
perform, appropriately for their requirements in
those particular categories. Similarly, landlords
may require tenants to achieve certain standards
when carrying out their fit out or alteration work,
so that the incoming tenant will not reduce the
performance of the building or affect the amenity
for other tenants.

14
Environment Elements to Consider
Performance
Categories
Management Requirement for base building documentation to meet Green Star Interiors v1.1 Eco-3
standards. NOTE
Quarterly building owner / tenant environmental management meetings to be held.
Management meeting agenda to be set as per RICS Guide to Environmental Performance.

Energy Requirement for landlord to (achieve and) maintain a certain NABERS Energy rating for the
base building.
Requirement for tenant to (achieve and) maintain a certain NABERS Energy rating for their
tenancy.
Requirement for landlord to install energy efficient lighting.
Requirement for landlords ability to provide zoned lighting.

Water Requirement for landlord to (achieve and) maintain Water rating under NABERS, agreed
between landlord and tenant.
Landlords base building facilities and tenant fit out to have set levels of water usage e.g. flow
regulators on taps.

Transport Landlord to provide facilities to meet Green Star Office Interiors Tra-3 (Cyclist facilities) to
achieve 1 or 2 points. NOTE

15
6.
Environment
Performance Elements to Consider
Categories
Materials All base building works to be carried out to achieve (insert number of points here) points
for IEQ and (insert number of points here) points for Materials category of Green Star
Design and As-Built v3. NOTE
To be in general accordance with Green Star Office Design and As-Built v3 2008 IEQ-13
ie. all new carpets, paints, finishes, adhesives, sealants and other floor coverings shall be
of low VOC type in accordance with GBCA limits. NOTE
Reuse of existing internal structures e.g. maintain set percentage of existing walls, floors
and roofs.
Use of regionally sourced materials for set percentage of refit value.

Emissions All base building works to be carried out to achieve (insert number of points here) points
for Emissions category of Green Star Design and As-Built v3. NOTE

Waste Waste streams covered;

- solid waste sent to landfill
- total paper & cardboard waste collected for recycling
- total other recyclables ( e.g. commingled containers)
Ability to separate waste.
Tenant to promote agreed waste management outcomes e.g. by separated / commingled
waste streams.
Ability to weigh waste by category (See NABERS Waste)
Fit out to minimise construction waste.
Provide e-waste collections every 6 months.
Landlord to incorporate recycling strategies in waste collection contracts to meet
outcomes agreed with tenant.
Provision of space for storage and collection of recyclables.

16
Environment
Performance Elements to Consider
Categories
Indoor Quality of air filtering.
Environment Standards of air flow.
Quality Establishment of air quality monitoring and reporting.
Establishment of CO2 monitoring and reporting.
Reporting on Air Testing (or NABERS IEQ testing) and reporting of results at regular
meetings.
Quality of artificial lighting.
Control of potential pollutants introduced through cleaning.
Control of potential pollutants introduced through pest control.
Control of VOCs and other pollutants in other tenants’ fit outs.
Use of environmentally sound cleaning methods.
Agree vacuum cleaner standards, maintenance procedures and filter maintenance
standards.
Maintain a list of all proposed cleaning chemicals and regimes used.
Setting of standards for cleaning equipment and management of its maintenance.
Certified wood products.
Best management practices for controlling indoor air quality during fit out.

NOTE The building may not be able to achieve a Green Star rating, but the Green Star tool can
be used to set the standards for the works and choices of materials to be used.

17
7.

Examples of
Environmental Initiatives

The following is an example of environmental performance targets and initiatives that can be included in
Green Lease provisions:

Key Performance indicators for the Key Performance indicators for the tenant
landlord
Energy
Improve Base Building to be 4.5 NABERS Must achieve and maintain during the Term a 5 Star Tenancy
Energy by year 2 of the lease. NABERS Rating.
Energy Management Plan. Participate in the Building’s Energy Management Plan that
would be prepared by the landlord.
Undertake continual monitoring of energy Undertake (as a minimum) quarterly monitoring of energy
consumption of the Premises and provide the Lessee consumption for the Premises and provide the landlord with
with reports of the energy consumption at each reports of the energy consumption at each Environmental
Environmental Management Committee meeting. Management Committee meeting.
Establishment of in-house training for
Environmental Management Committee to
ensure dissemination of emerging developments
in ‘green building’.
Wherever possible ensure that the Building has Join and participate in the CitySwitch Program.
energy efficient lighting installed.
Install and maintain a building maintenance
control system (BMCS), upgrade during the
term of the Lease.
The BMCS must be set to turn lighting off in the
Building at 6pm with the ability for the landlord
or tenant to override the default switch for
lighting in the Building.
The landlord must provide the tenant with
quarterly reports of the Environmental
Performance of the Building.

18
Key Performance indicators Key Performance indicators for the tenant
for the landlord
Provide adequate metering/sub-metering. The following energy conservation initiatives are to be
incorporated into the tenancy:

Install and use energy efficient lighting. n The tenant must not use or install incandescent,
halogen or energy intensive lighting.
n The tenancy must have movement sensors in meeting
Landlord to ensure the lighting system
rooms, store rooms, etc to control the lighting and to
has the capability to provide individually
trigger the lighting switch when required.
switched lighting zones that do not exceed
100 square metres. n Install and use adequate metering/sub-metering for
energy consumption.
Base building lighting level to be set at n The tenant must encourage energy efficiency
particular Lux or light level, eg. lighting practices among their staff.
power density of less than 7W/m2 for 320 n Separate light switches should be installed for
Lux and fit out to set lighting at particular individual work spaces.
Lux level.

19
7.
Key Performance indicators Key Performance indicators for the tenant
for the landlord
Water
Improve Base Building to be 2.5 NABERS Water Installation and use of water efficient devices and equipment.
by year 2 of the lease.
Fit out appointments to have set levels of water usage in
Base building to have set levels of water usage toilets (e.g. waterless urinals, dual flush etc).
in toilets (e.g. waterless urinals, dual flush etc).
Fit out appointments to have set levels of water usage in
Base building to have set levels of water usage showers e.g. AAA rating heads.
in showers e.g. AAA rating heads.
Undertake continual monitoring and provide the
tenant with reports of the water consumption at
each Environmental Management Committee
meeting.

Waste
The landlord is to achieve and maintain a waste Follow landlord’s waste strategy and educate staff of the
reduction that is greater than 70% diverted from waste reduction requirements and obligations. Provide Waste
landfill by using appropriate waste services and facilities for the separation of Waste into Paper, Recyclables,
applying appropriate waste separation facilities Wet Food and General Waste.
in the Building and Premises.
Monitor waste every quarter and Audit Waste Wherever possible, avoid the use of materials that are not
system every year, Improve Base Building waste recyclable, cannot be reused or diverted from landfill.
to be 2.5 NABERS Waste by year 2 of the lease.
Implement a Waste Management Plan Work with the landlord, participating in programs and
and provide the tenant with reports of the initiatives for Waste reduction.
Waste performance at each Environmental
Management Committee meeting.

20
Key Performance indicators for the Key Performance indicators
landlord for the tenant
Cleaning Products
Use cleaning products that have a low Use cleaning products that have a low environmental impact
environmental impact. with a phase into neutral over a set period.

Pesticides
In the event that pests need to be removed, In the event that pests need to be removed, exhaust non-
exhaust non-toxic methods of pest treatment toxic or neutral impact methods of pest treatment before
before toxins and poisons are introduced to the toxins and poisons are introduced to the building.
building.

Building Works
Any future Landlord works to be carried out VOCs (Volatile Organic Compounds)
to good standard as prescribed in Green Star Any works by tenant to be specified to minimise the
Office Design and As-Built current at that time, introduction of VOCs, to be in general accordance with
particularly in relation to the materials and IEQ Green Star Office v3 2008 IEQ-13 ie. all new carpets, paints,
categories. finishes, adhesives, sealants and other floor coverings shall
be of low VOC type in accordance with GBCA limits.
The procurement of materials used for fit out, alteration or
maintenance work must have low environmental impact.
Fit out to minimise / exclude use of non-plantation timber.

When refurbishing the tenancy reuse materials whenever

possible.

Green Star
Even if an existing building, buildings are to be Achieve minimum of 5 Star Green Star tenancy rating during
managed to achieve a minimum of 13 points in the course of the lease.
the section IEQ in Green Star Office V3.

21
8.

Energy Performance
Adverse Impact Guidelines

This section sets out the information of areas where the landlord believes the tenant could affect the base building’s
environmental performance. This will be part of the landlord’s approval of the tenant’s proposed fit out and an ongoing
obligation on the part of the tenant.
The guidelines and standards will be based on the design and performance levels of the building. This document will normally
be set up with guidance from the building’s design engineers and Environmentally Sustainable Development consultants.

Guidelines and Tenant Responsibility

Standards Required

Tenancy (NABERS Energy)

The tenancy must achieve a Tenant to issue drawings, specifications and NABERS Energy design assessment
minimum NABERS Energy for review by owner.
rating of 4.5 stars. Tenant to issue ‘as built’ documentation including O&M manual, commissioning plans
and commissioning report signed by mechanical and electrical engineer for review by
owner as well as an appropriate green occupational health and safety report.
Tenant shall allow access to Owner to walk through finished fit out and observe
system operation.

Lighting Load
Average lighting load for Tenant to confirm to owner that this criteria has been achieved.
each tenancy including Tenant to confirm how lighting is controlled and commissioned to turn off when not in use.
ballast losses shall not
Lighting power use shall be metered independently of small power on a typical floor and
exceed 10 w/m2.
information shall be made available to owner.
All floors without full control by movement detectors shall have a cleaner switch that turns
all lights off simultaneously.

Occupant Density
Occupant density shall not Tenant to confirm occupant density and typical working hours and to advise as to
exceed 10m2 per person. impact of flexible working hours and weighting of such working regimes over the week
e.g. advice as to when, over a period of time, occupancy appears to peak.

22
Guidelines and Tenant Responsibility
Standards Required
Equipment Load
Average peak small power Tenant to confirm to owner using NABERS Energy fit out protocol and
load shall not exceed 20w/m2 schedules that this requirement is achieved.
on average, as calculated in Each floor of tenancy shall meter energy consumption and trend log
accordance with NABERS Energy consumption. Information to be made available to owner.
protocol. If the combined metered energy use of lights and small power exceeds the
total maximum allowance in operation, further measurements and reporting
may be requested to identify key energy users.

Building Operation Hours

The base building shall operate Not withstanding hours of operation of air-conditioning requirements, the
between 55 and 60 hours per tenant should be aware that to improve energy rating the plant may be turned
week as defined in the lease. off earlier or later to meet energy requirements. Under these conditions fresh
air will still be provided that will ensure reasonable level of conditioning.

Operation and Maintenance

Tenancy systems will be operated In event of not achieving NABERS Energy rating in operation tenant shall
and maintained in accordance ensure a re-commissioning is performed and the report forwarded to the
and consistent with how systems owner.
were commissioned.

Commissioning
Tenant shall ensure all Tenant shall provide a copy of as built commissioning report identifying
tenant systems are properly commissioning dates, the tests carried out and the outcomes and changes
commissioned. made as a result of the commissioning process.
Tenant shall ensure systems are re-commissioned after 6 months to ensure
they are operating correctly in response to tenant fit out.
Tenant shall allow for ongoing building tuning on a quarterly basis post
refurbishment.

23
8.
Guidelines and Tenant Responsibility
Standards Required

Supplementary Air Conditioning

In areas that exceed the Tenant to confirm areas in fit out that require supplementary conditioning and
combined load of lighting and hours of operation of these units.
small power or occupancy Supplementary units whose combined installed capacity exceed 50Kw shall
density, a supplementary be metered separately.
air conditioning unit shall be All supplementary units are to be connected to supplementary condenser
installed. water loop and tenant to inform owner of likely load in the operation of these
systems, in accordance with NABERS Energy protocol.
In areas where tenant will
consistently use building out All supplementary units shall have isolation valves installed, these valves are to
remain shut when unit is not in operation.
of operation hours (defined in
lease) density, a supplementary All supplementary units serving areas other than server rooms shall have wall
air conditioning unit shall be mounted timer switches to a maximum of up to 1.5 hours to turn units off.
Not withstanding this requirement each unit must allow occupant to override
installed.
operation and turn unit on or off. Occupancy sensors are recommended.
Where deemed appropriate these units will also be switched off when the
lights are switched off.
Consideration should be given to installing a pressure sensor at base building
condenser water connection that reports to base building BMS.

Out of hours operation

Out of hours operation shall be Tenant shall supply landlord with an estimate of likely out of hours operation profile.
limited to XX hours per week (to Tenant shall log any requirements for out of hours air-conditioning. Request to
be agreed). This is a particularly be made 1 hour prior to when service is required.
critical issue as running the base If areas of the floor plate will consistently require out of hours, a supplementary
building to serve a small part of unit supplying these areas is recommended. See Section on Supplementary
the building is very inefficient. Air Conditioning.
Not withstanding hours of out of hours air-conditioning requirements, the
tenant should be aware that to improve energy rating plant may be turned off
earlier or later to meet energy requirements. Under these conditions fresh air
will still be provided that will ensure a degree of temperature control.

24
9. References

RICS Greening Make Good Guide (1st Edition), 2009

Green Building Council of Australia - www.gbca.org.au
n Green Star Office Interior Tool v.1.1
n Green Star Office Design v.3
n Green Star Office As Built v.3

NABERS Energy for Offices, 2008 - www.nabers.com.au

n Energy
n Water
n Waste
n Indoor Environment Quality

Property Council of Australia, A Guide to Office Building Quality,

2006, PCA - www.propertyoz.com.au
CitySwitch Green Office - www.cityswitch.net.au

rics.org.au 25
RICS - The Mark of Property
Professionalism Worldwide
Advancing standards in land, property and construction.
RICS is the world’s leading professional qualification
in land, property and construction. In a world where
the public, governments, banks and commercial
organisations demand greater certainty of professional
standards and ethics, attaining RICS status is the
recognised mark of property professionalism.
Over 140 000 property professionals working in the
major established and emerging economies of the world
have already recognised the importance of securing
RICS status by becoming members.
RICS is an independent professional body. Since 1868,
RICS has been committed to setting and upholding the
highest standards of excellence and integrity – providing
impartial, authoritative advice on key issues affecting
businesses and society.

RICS Oceania
Suite 2, Level 16
1 Castlereagh Street
Sydney, NSW 2000 Australia
(T)+61 (0)2 9216 2333
(F)+61 (0)2 9232 5591
info@rics.org.au
www.rics.org.au