If you’re contemplating the sale or lease of your commercial building of 1,000 sqm or more, a Building Energy Efficiency Certificate (BEEC) to comply with the Australian Government’s Commercial Building Disclosure (CBD) Program is mandatory.
In June 2016 the Federal Government announced that the requirement for a BEEC would be reduced from 2,000 sqm to 1,000 sqm with effect from 1st July 2017.
If your building is disclosure affected, under the BEED Act it is a legal requirement that you obtain from the Australian Government a BEEC before you offer your space for sale, lease or sublease.
A BEEC is made up of two parts:
• A National Australian Built Environment Rating System (NABERS) Energy for office star rating
• A Tenancy Lighting Assessment of the relevant area of the building
It is important that if your building is disclosure affected you provide a BEEC to all prospective purchasers or tenants. Failure to comply can result in penalties of up to $180,000 for the first day and $18,000 for each subsequent day may be imposed by a Court for each breach of a disclosure obligation.
Commercial Building Disclosure Programme
You are likely to be affected by the CBD Programme if you are:
• A building owner who is selling or leasing office space with a net lettable area of 1,000 square metres or more
• A tenant who is subleasing part of your tenancy with a net lettable area of 1,000 square metres or more
• A real estate agent who is advertising office space with a net lettable area of 1,000 square metres or more
Note: some buildings are subject to an exception.
For more information on the overall CBD programme please visit www.cbd.gov.au.
Nathan Sparrow of McGees Property is a qualified NABERS and BEED assessor and will be able to assist you further in answering any queries you may have regarding compliance with this legislation.
Feel free to contact Nathan on 08 8414 7800 if you would like to discuss this further in relation to your property or email email@example.com