What is the Commercial Building Disclosure Program?
The Commercial Building Disclosure (“CBD”) Program requires energy efficiency information to be disclosed in certain circumstances where commercial office space is offered for sale, lease or sublease.
Up until 30 June 2017 the CBD Program required disclosure of certain information where commercial office space which had a net lettable area of 2,000 square metres or more was put up for sale, lease or sublease unless the building was subject to an exception or the building owner or sublessor had been granted an exemption.
What needs to be disclosed?
Under the CBD Program:
- a Building Energy Efficiency Certificate (“BEEC”) must be provided to potential buyers, lessors and sublessors when requested at the time of sale, lease or sublease
- BEECs are made publicly available on the Building Energy Efficiency Register, and
- the building’s NABERS Energy star rating must be included in any advertising material, for the sale, lease or sublease of the building.
What are the changes?
From 1 July 2017, the mandatory disclosure threshold will be lowered from 2,000 square metres to 1,000 square metres for properties offered for sale, lease or sublease after this date.
Which buildings are subject to an exception?
The following buildings are exempt from the CBD Program:
- new buildings or buildings which have undergone a major refurbishment for which a certificate of occupancy has either not been issued or has been issued in the last two years
- strata-titled buildings, and
- mixed use buildings where the total office space comprises less than 75 per cent of the building by net lettable area.
What is the impact of the change?
The change will mean that owners and sublessors of smaller office buildings will be required to comply with the CBD Program and will need to be aware of its requirements.
Click here to access further information about the CBD Program.