Green Star retail business case

The benefits of green retail continues to stack up

Green Star ratings provide retailers with opportunities to achieve higher sales, attract and retain high-performing staff, and deliver a better experience for customers.

Increase sales

Compelling international research confirms that green retail buildings – those with good natural light and ventilation, high-performance heating and cooling systems, and materials low in harmful chemicals – are not only more efficient and cheaper to operate, but can also improve the experience for customers and retail takings too.

The Heschong Mahone study into daylighting (2003) found that naturally-lit retail spaces can increase sales by up to 40%.  In fact, the profit from increased sales associated with daylight is worth up to 100 times more than the energy savings.

A study from the University of Notre Dame study (2012) has found that bank branches rated under the USGBC’s LEED system:

  • opened 458 more consumer deposit accounts
  • had $3 million more in consumer deposit balances
  • had $1 million more in loan balances than their non-LEED counterparts. 

The WorldGBC’s Business case for Green Building (2013) reports significant increases in sales at Walmart from daylighting.

Westfield Sydney

Case study

Westfield Sydney

5 Star Green Star – Retail Centre Design v1 

Westfield Sydney was designed to slash potable water use by 80 per cent and greenhouse gas emissions by 35 per cent when compared with an average retail centre of equivalent size.  More than 90 per cent of all demolition and construction waste was recycled.  Perhaps more impressive, visitor traffic is now up by 20 per cent – to more than 22 million a year – and annual sales have doubled since Westfield Sydney undertook its Green Star makeover.



Achieve operational cost savings

Green buildings are designed to be highly energy and water efficient, which makes them cheaper to operate.

The Value of Green Star: A decade of environmental benefits (2013) finds that Green Star buildings use 66% less electricity and 51% water than the average Australian building.

The Green Retail and Hospitality SmartMarket Report (2013) found that green building projects in the US retail sector a 15% more energy-efficient and 8% cheaper to run than their non-green counterparts.

Stockland Wetherill Park

Case study

Stockland Wetherill Park

5 Star Green Star – Retail Centre Design v1

The sustainable upgrade of this 32-year-old centre is expected to save tenants $4 million each year in energy costs. Energy use is being slashed with mixed-mode air conditioning, low-energy light fittings, climate responsive ventilation systems, and electrical sub-metering expected to deliver savings of 55 per cent when compared with the average shopping centre.  Rainwater harvesting for toilet flushing is expected to reduce potable water consumption by five kilolitres a day – almost an Olympic pool’s worth of water.  



The sustainability costs our 6 Star Green Star retail centre, The Ponds, amounted to around $290,000 and are estimated to provide savings of $45,000 a year.

Paolo Bevilacqua, General Manager, Sustainability of Frasers Property Australia

  

Boost worker productivity and health

Green Star buildings consistently outperform non-green buildings in terms of comfort and productivity. Natural light, fresh air and access to views of the outdoors, as well as control over individual workspace temperature and lighting, can affect productivity directly.

3% increase in productivity when people had individual temperature control of their workspace.

11% productivity gains from improved ventilation.

18% increase in productivity from access to daylight and operable windows.

23% improved productivity from well-designed lighting.

Stockland Townsville

Case study 

Stockland Townsville

4 Star Green Star – Retail Centre As Built v1

As well as being energy and water-efficient, Stockland Townsville also encourages healthy and active living.  State-of-the-art cyclist facilities cater to five per cent of the centre’s staff, including change room facilities, showers and lockers.  Staff can access the facilities with a keypad.  Cycle spaces and storage is also provided for visitors’ use across the entire site.



Attract the best employees

Employees, particularly young people, increasingly want to work for the ‘good guys’ - the companies that are conscious of their impact on the environment. 

Working from a green retail space can positively impact how employees feel about their employer, and higher satisfaction can mean higher employee retention. 

Attract customers

Retail customers are increasingly rewarding sustainability with their wallets. 

The Australian Food and Grocery Council’s Green Shopper Summary Report (2014) found 80% of consumers think about environmental issues when shopping, and 96% place importance in a retailer’s efforts to reduce their environmental impact.

Boston Consulting Group’s When Social Responsibility Leads to Growth (2014) finds responsible products currently account for 70% of product growth.

Case study

Coles Hallam

4 Star Green Star – Custom Design

Coles began working with the GBCA in 2009 to develop a Green Star rating tool to drive the delivery of a ‘supermarket of the future’ and now has a model for supermarkets that are more efficient and cost-effective to run, and more comfortable places for people to work and shop.  It has since achieved a 4 Star Green Star rating for its Hallam store in south east Melbourne, proving that sustainability and supermarkets are a winning combination for business and the environment.

“Coles is committed to sustainability because we know it’s good for our customers, good for business and the right thing to do for the environment.  Gaining this Green Star rating is one significant way we are achieving our sustainability goals,” says Sam Pinchbeck, Property General Manager, Coles

Coles Hallam
Kathmandu recognises that minimising our environmental footprint and optimising our contribution to human health and community are integral to our business success. We believe that sustainability is a strategic business decision, and one that will open up new opportunities and reinvent the bricks-and-mortar retail experience.

Tim Loftus, Sustainability & Community Manager, Kathmandu

Centre owners and operators

Increasingly, owners and operators of retail centres around Australia are going green, as the business case for sustainability stacks up.


Higher return on investment

Green buildings deliver consistently higher returns on investment compared their non-green counterparts.

The Green Retail and Hospitality SmartMarket Report (2013) found that green building projects in the US retail sector deliver a 7% increase in asset value and an 8% increase in return on investment. 

The Building Better Returns report (2011) found that Green Star-rated buildings deliver a 12% ‘green premium’ in value and a 5% premium in rent, when compared to non-rated buildings.

World Green Building Council’s Business Case for Green Building (2013) found that price premiums for green buildings could be up to 30% – with evidence that the higher level of certification, the best results.

  

Green Star has “influenced the decision-making process as we strive to innovate and achieve positive outcomes in energy, water, waste and indoor environment quality. This has all benefited our shoppers, retailers and staff. Green Star has contributed to more efficient shopping centre operations, and has helped us improve and maintain the well-being of the communities in which we operate.

Benjamine Duncan, Energy & Sustainability Manager, Scentre Group

Achieve operational cost savings

Green buildings are designed to be highly energy and water efficient, which makes them cheaper to operate.

The Value of Green Star: A decade of environmental benefits (2013) finds that Green Star buildings use 66% less electricity and 51% water than the average Australian building.

The Green Retail and Hospitality SmartMarket Report (2013) found that green building projects in the US retail sector a 15% more energy-efficient and 8% cheaper to run than their non-green counterparts.

Stockland Wetherill Park

Case study

Stockland Wetherill Park

5 Star Green Star – Retail Centre Design v1

The sustainable upgrade of this 32-year-old centre is expected to save tenants $4 million each year in energy costs. Energy use is being slashed with mixed-mode air conditioning, low-energy light fittings, climate responsive ventilation systems, and electrical sub-metering expected to deliver savings of 55 per cent when compared with the average shopping centre.  Rainwater harvesting for toilet flushing is expected to reduce potable water consumption by five kilolitres a day – almost an Olympic pool’s worth of water.  



Attract tenants

While few studies have been undertaken to explore the link between green-rated retail centres and tenant attraction, more broadly, green buildings have a competitive edge and can help to attract prospective tenants.

The GBCA’s Valuing Green (2008) report found that green buildings attract better quality tenants, such as government and ‘top tier’ corporates with stable businesses and strong commitments to corporate social responsibility.

World Green Building Council’s Business Case for Green Building (2013) found that buildings with a green rating report an occupancy rate increase of up to 23%. The higher the rating, the higher the rental premium – with an average 3% increase in rent for each additional level of certification.

Colliers International’s Office Tenant Survey (2012) found that 95% of tenants want to be in a green building, up from 75% two years earlier. ‘Green space’ is one of the top four attributes tenants look for – along with bike racks, childcare facilities and a gym.

CBRE’s Do Green Buildings Make Dollars and Sense? (2009) found that that green buildings have 3.5% lower vacancy rates and 13% higher rental rates than the wider market.

Case study

The Ponds

6 Star Green Star – Retail Centre Design v1

Frasers-Australand has been awarded its first 6 Star Green Star rating by the Green Building Council of Australia for The Ponds Shopping Centre in north west Sydney.  Australand’s $40 million centre, located in north west Sydney, achieved a ‘world-leadership’ Green Star rating for a range of sustainability initiatives – from a solar PV system that powers the car park lighting to a naturally-ventilated mall.  

The Ponds
Investors and tenants are increasingly seeking green buildings which over time will be reflected in valuations and overall performance

Paolo Bevilacqua, General Manager, Sustainability of Frasers Property Australia

      

Increased sales

Compelling international research confirms that integrating green design – such as access to natural light and ventilation, and choosing materials that are low in harmful chemicals – can improve retail takings and improve the business bottom line. 

The Heschong Mahone study into daylighting (2003) found that naturally-lit retail spaces can increase sales by up to 40%.  In fact, the profit from increased sales associated with daylight is worth up to 100 times more than the energy savings.

A study from the University of Notre Dame study (2012) has found that bank branches rated under the USGBC’s LEED system:

  • opened 458 more consumer deposit accounts
  • had $3 million more in consumer deposit balances
  • had $1 million more in loan balances. 

The WorldGBC’s Business case for Green Building (2013) reports significant increases in sales at Walmart from daylighting.

Westfield Sydney

Case study

Westfield Sydney

5 Star Green Star – Retail Centre Design v1

Westfield Sydney was designed to slash potable water use by 80 per cent and greenhouse gas emissions by 35 per cent when compared with an average retail centre of equivalent size.  More than 90 per cent of all demolition and construction waste was recycled.  Perhaps more impressive, visitor traffic is now up by 20 per cent – to more than 22 million a year – and annual sales have doubled since Westfield Sydney undertook its Green Star makeover.



Capture environmental benefits

Building green is a clear expression of commitment to the environment.

The Value of Green Star: A decade of environmental benefits (2013) finds that, on average, Green Star-certified buildings:

  • Use 66% less electricity than average Australian buildings
  • Produce 62% fewer greenhouse gas emissions than average Australian buildings
  • Use 51% less potable water than average buildings
  • Recycle 96% of their waste, compared with 58% for the average new construction project.

Case study

Stockland Shellharbour

4 Star Green Star – Retail Centre As Built v1

Australia’s largest single rooftop solar system generates 28 per cent of the Stockland Shellharbour’s daily power requirements.  The 3,991 photovoltaic panels cover a similar surface area to a football field and generate enough power to service 280 homes and offset 1,700 tonnes of carbon emissions each year.  The $2 million system was funded by Stockland’s green bond issuance.  Combined with other energy-saving initiatives, such as three 12kW wind turbines, Stockland has reduced greenhouse gas emissions by 60 per cent on business-as-usual and is saving enough energy to power 380 homes for a year.

Stockland Shellharbour
Stockland Baldivis

Case study

Stockland Baldivis

4 Star Green Star – Retail Centre Design v1

At Stockland Baldivis 80 per cent of waste is recycled, with waste cardboard compactors and a dedicated recycling room, as well as facilities for recycling cooking oil, organics, soft plastics and polystyrene.  Recycling bins are conveniently located around the centre for customers.



Demonstrate leadership

People around the world perceive green buildings as modern and ethical.  A Green Star rating can reinforce corporate social responsibility and demonstrate leadership.

 

Green Star provides Australand with third party verification, and importantly, enhances the credibility and rigour of our sustainability claims. As awareness of the Green Star brand continues to grow in the sectors in which we operate, certification provides positive proof of a project’s social and environmental credentials. This gives us an extra edge in our marketing.

Paolo Bevilacqua, General Manager, Sustainability of Frasers Property Australia

Case study

Wintergarden

5 Star Green Star – Retail Centre Design v1

ISPT’s Wintergarden retail redevelopment in Brisbane’s Queen Street Mall generates fewer emissions, is energy- and water-efficient and offers better indoor environment quality for retail tenants and shoppers alike.

Wintergarden
We are keen to lead by example in demonstrating the environmental and economic benefits that can be achieved through sustainable design in the retail sphere. Our goal is to educate the retail tenancy market by ‘walking the talk’ with developments like Wintergarden

Rob Sviderskas, ISPT Portfolio Manager Engineering & Sustainability

Stockland Hervey Bay

Case study

Stockland Hervey Bay

4 Star Green Star – Retail Centre As Built v1

Stockland is undertaking a live study at Hervey Bay to test the practical benefits of cool roof technology.  Working together with BlueScope Steel, Stockland has used its COLORBOND Coolmax steel product, which was designed to provide the best thermal performance for the commercial and industrial roofing market.  The study will determine whether cool roof technology can reduce the upfront and ongoing costs of air-conditioning, reduce energy consumption and improve green ratings.