Challenges on the Pathway to Net Zero

NET ZERO IN GOVERNMENT OPERATIONS

‘Property is the main driver of electricity and natural gas consumption and related emissions. Reducing these emissions by improving energy efficiency and electrification represents the most achievable and cost-effective approach’

The challenges entities may face include:

• Existing buildings are unlikely to meet these requirements, meaning lease procurements must commence earlier to enable development timeframes.

• Entities should expect rental uplift of up to 30% associated with the requirement for all-electric buildings and the uplift in quality to new developments.

Our team brings decades of experience developing leasing strategy for Commonwealth entities and can address these challenges through:

• Developing a program for property lease transaction at a portfolio level to ensure entities allow sufficient time to run effective market processes that are affordable and will meet their requirement.

• Development of funding strategies to ensure that entities are fully funded before pursuing property solutions, including working with entities to ensure requirements are designed around the efficient use of entity resources.

• Working across entity business groups to ensure that requirements are developed with an affordability mindset.