1. Impact of Green Features on CBD Office Building Rentals: An Adelaide Case Study Work in Progress European Real Estate Society Conference Milan, Italy, June 2010 Professor David Parker Dr Valerie Kupke, Dr Sharon Yam Dr Geoff Page, Brian O’Callaghan

2. Slide 2 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

3. Slide 3 Aim Of Paper Literature review to identify features of green office buildings that are likely to influence rental value Identify a sample of green and non-green office buildings in the Adelaide CBD Collect data on rentals and green features Quantify impact on rental value of each green feature

4. Slide 4 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

5. Slide 5 Literature Review Green Features General green building features Specific green building features as subsets Green building benefits

6. Slide 6 Literature Review Green Features General green building features –Energy efficiency –Water conservation –Passive ventilation –Waste minimisation –Convenient access to alternative transportation –Sustainable building materials

7. Slide 7 Literature Review Green Features General green building features –Energy efficiency – specific subsets: Separate metering Motion control lighting devices Alternative energy (eg solar panel) Maximisation of natural/day light (eg open plan)

8. Slide 8 Literature Review Green Features General green building features –Water conservation – specific subsets: Water recycling/reuse Restrictive plumbing devices (eg aerators) Other water resources (eg rain water) Effective landscaping (eg native plants, recycling of grey water)

9. Slide 9 Literature Review Green Features General green building features –Passive ventilation – specific subsets: Natural ventilation (opening windows) Individual comfort / temperature control Green air-conditioning technology

10. Slide 10 Literature Review Green Features General green building features –Waste minimisation – specific subsets: Recycling programme for paper, aluminium, etc –Convenient access to alternative transportation – specific subsets: Bicycle rack Close to bus routes –Sustainable building materials (eg farmed timber)

11. Slide 11 Literature Review Green Building Benefits Corporate benefits –Good image for public, shareholders and clients –Demonstration of corporate social responsibility –Evidence of sustainability – opportunity for differentiation

12. Slide 12 Literature Review Green Building Benefits Building benefits –Lower services and maintenance costs –Giving individuals greater control over their workspace environment –Improved indoor air quality

13. Slide 13 Literature Review Green Building Benefits People benefits –Increased staff productivity –Reduced absenteeism –Lower workforce turnover –Attract talented employees –Reduce health and safety risks –Less claims made on health costs (eg medical, litigation) –User satisfaction

14. Slide 14 Literature Review Green Building Benefits Other benefits –Reduced greenhouse gas emission –Waste minimisation –Minimise site impact (eg through thoughtful landscaping)

15. Slide 15 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

16. Slide 16 Data Collection Building sample – green star as built and non- green buildings Control for: –Location –Age –Tenant type –Leased area –Rent start date

17. Slide 17 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

18. Slide 18 Data Analysis Three pairs of buildings: –Pair A Green private vs non-Green Govt –Pair B Green Govt vs non-green Govt –Pair C Green private vs non-green private Green building tenant size: –Pair B Large vs small green Govt –Pair C Large vs small green private

19. Slide 19 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

20. Slide 20 Preliminary Findings Rental Differences – Green vs Non-Green Buildings Source: Authors Pair APair BPair C Large Non GreenGovernment Private GreenPrivateGovernmentPrivate Difference $ Difference % +$100psm +37.7% +$35psm +9.6% +$73psm +32.3% Small GreenN/AGovernmentPrivate Difference $ Difference % N/A +$50psm +13.7% +$106psm +46.9%

21. Slide 21 Preliminary Findings General Green Building Features Source: Authors

22. Slide 22 Preliminary Findings Specific Green Building Features Source: Authors

23. Slide 23 Preliminary Findings Green Building Benefits Source: Authors

24. Slide 24 Preliminary Findings General Green Building Features Source: Authors

25. Slide 25 Preliminary Findings Specific Green Building Features Source: Authors

26. Slide 26 Preliminary Findings Green Building Benefits Source: Authors

27. Slide 27 Preliminary Findings General Green Building Features Source: Authors

28. Slide 28 Preliminary Findings Specific Green Building Features Source: Authors

29. Slide 29 Preliminary Findings Green Building Benefits Source: Authors

30. Slide 30 Preliminary Findings General Green Building Features Source: Authors

31. Slide 31 Preliminary Findings Specific Green Building Features Source: Authors

32. Slide 32 Preliminary Findings Green Building Benefits Source: Authors

33. Slide 33 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

34. Slide 34 Preliminary Conclusions Everything that is green is important Limitations of small sample Variations in ranking of features and benefits Only low ranked feature passive / natural ventilation Corporate and People benefits rank higher than Building benefits

35. Slide 35 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

36. Slide 36 Areas for Further Research Survey greater number of small tenants in Adelaide sample buildings Analyse rental data and green features data from Adelaide sample Investigate issues surrounding price makers vs price takers Survey large tenants in other cities for comparative analysis

37. Slide 37 Overview Aim of Paper Literature Review - Green Features Data Collection - Building Sample Data Analysis Preliminary Findings Preliminary Conclusions Areas for Further Research

38. Impact of Green Features on CBD Office Building Rentals: An Adelaide Case Study Work in Progress European Real Estate Society Conference Milan, Italy, June 2010 Professor David Parker Dr Valerie Kupke, Dr Sharon Yam Dr Geoff Page, Brian O’Callaghan