As sustainability becomes an increasingly important consideration in commercial property, NABERS ratings have emerged as one of Australia's most recognised measures of building performance. Investors, tenants and property owners use NABERS ratings to understand how efficiently buildings operate and how they compare with their peers.
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What is a NABERS rating?
A NABERS rating provides an independent assessment of a building's environmental performance based on how it actually operates. Rather than measuring what a building was designed to achieve, NABERS assesses real-world performance using operational data.
Ratings are available across a range of categories including energy, water, waste, indoor environment quality and carbon neutrality.
NABERS meaning and the National Australian Built Environment Rating System
NABERS stands for the National Australian Built Environment Rating System. Developed and administered by the NSW Government, it provides a consistent framework for measuring and comparing building performance across Australia.
The system is widely used across the commercial property sector and is recognised by investors, tenants, financiers and regulators as a trusted indicator of environmental performance.
What the star rating measures
NABERS ratings are assigned on a scale from 0 to 6 stars, with higher ratings indicating stronger performance.
The assessment measures how efficiently a building uses resources and manages environmental impacts in operation. Depending on the rating type, this may include factors such as energy consumption, greenhouse gas emissions, water usage, waste management and indoor environmental quality.
NABERS Energy, Water, Waste, Indoor Environment and Carbon Neutral ratings
NABERS offers several different ratings, each focusing on a specific area of performance:
NABERS Energy assesses energy consumption and emissions.
NABERS Water measures water efficiency and consumption.
NABERS Waste evaluates waste generation and diversion from landfill.
NABERS Indoor Environment assesses factors that influence occupant comfort and wellbeing.
NABERS Carbon Neutral recognises buildings that have achieved net zero operational emissions through emissions reduction and offsetting.
Together, these ratings provide a comprehensive picture of a building's operational sustainability performance.
Why NABERS ratings matter in commercial property
Tenant expectations and leasing competitiveness
Sustainability is increasingly influencing leasing decisions. Many occupiers have their own ESG commitments and seek buildings that support energy efficiency, lower emissions and healthier workplaces.
Strong NABERS ratings can help demonstrate that a building aligns with these expectations, supporting leasing performance and tenant attraction.
Operating costs and building efficiency
Buildings with higher NABERS ratings are often more resource efficient, which can translate into lower energy and water consumption. Reduced utility use can help manage operating costs and improve overall building performance over time.
Investor due diligence and asset quality signals
Investors use NABERS ratings as part of their due diligence process when assessing property assets and portfolios. Ratings provide an independent, standardised measure that can help identify operational performance, efficiency and potential future risks.
ESG reporting and sustainability commitments
NABERS ratings also play an important role in ESG reporting. They provide credible, externally assessed data that organisations can use to track sustainability performance and demonstrate progress against environmental targets.
How is a NABERS rating calculated?
Measured performance vs design intent
One of the defining features of NABERS is its focus on actual performance rather than design aspirations. Ratings are based on how a building performs in operation, providing a more accurate reflection of real-world outcomes.
Energy and water data, occupancy and building use
Assessments draw on verified operational information, which may include utility consumption data, occupancy levels and building characteristics. This helps ensure fair comparisons between buildings operating under different conditions.
Independent assessment and certification
To maintain consistency and credibility, NABERS ratings are undertaken by accredited assessors using established methodologies. This independent verification provides confidence for investors, tenants and other stakeholders.
When is a NABERS rating required?
Commercial office disclosure requirements
Under Australia's Commercial Building Disclosure framework, certain office buildings offered for sale or lease must disclose a current NABERS Energy rating. This helps improve transparency and allows tenants and purchasers to compare building performance.
Voluntary ratings for other asset classes
Outside mandatory disclosure requirements, many property owners choose to obtain NABERS ratings voluntarily as part of their sustainability strategy and performance management programs.
When tenants or investors may request a rating
Institutional investors, large corporate tenants and sustainability-focused organisations may request NABERS ratings when evaluating buildings for investment or occupancy decisions.
NABERS vs other sustainability ratings and certificates
NABERS is one of several sustainability frameworks used across the real estate sector.
While NABERS focuses on operational performance, other certification schemes assess different aspects of sustainability:
Green Star evaluates the sustainability of design, construction and operation.
GRESB benchmarks ESG performance at the fund and portfolio level.
WELL focuses on health and wellbeing outcomes for building occupants.
PRI assesses responsible investment practices.
How different ratings can work together
Many leading property owners and fund managers use multiple frameworks together. Combining operational performance ratings with asset-level and portfolio-level certifications helps provide a more comprehensive view of sustainability performance.
How NABERS ratings can influence property value and running costs
Rental appeal and tenant retention
Buildings with strong environmental credentials may be better positioned to attract tenants seeking high-performing workplaces. Sustainability credentials can also support tenant satisfaction and long-term occupancy.
Capital expenditure requirements
NABERS ratings can help identify opportunities to improve building performance. Understanding how a building performs can support investment decisions around upgrades, plant replacement and efficiency improvements.
Risk management for older buildings
For older assets, NABERS ratings can highlight areas where performance may lag market expectations. This can help owners identify potential risks related to future regulations, operating costs or tenant demand.
How Charter Hall approaches ESG benchmarks across its portfolio
Charter Hall uses a range of independent sustainability benchmarks and ratings to measure performance, drive continuous improvement and provide transparency for investors. These include NABERS, Green Star, WELL, GRESB and PRI.
Using multiple frameworks allows Charter Hall to assess sustainability performance from different perspectives, from operational efficiency at the asset level through to ESG performance across entire investment portfolios. Independent benchmarks also help provide investors with confidence that performance is being measured using recognised industry standards.
Frequently asked questions
Where to look up a building's NABERS rating
Current NABERS ratings can be searched through the NABERS website and, where required under disclosure regulations, may also be included in leasing and sales documentation.
Investors and tenants should ensure they are reviewing current ratings, as performance can change over time.
What NABERS ratings has Charter Hall achieved?
Charter Hall continues to maintain strong NABERS performance across its portfolio, reflecting a long-term focus on building efficiency, operational excellence and customer experience. In FY26, Charter Hall achieved a 5.0-star NABERS Energy portfolio rating for Office, covering 100% of eligible Office assets by area, and a 5.3-star NABERS Energy portfolio rating for Convenience Retail, covering 89% of eligible Convenience Retail assets by area. Charter Hall also maintained NABERS Indoor Environment ratings of 5 stars or above across 1.5 million square metres of eligible Office assets, demonstrating a focus on creating healthy, comfortable workplaces for customers.
What is a good NABERS energy rating?
A higher star rating indicates stronger performance. What constitutes a "good" rating will depend on asset type, market expectations and peer performance, but higher-rated buildings are generally considered more energy efficient.
How can a building improve its NABERS rating cost-effectively?
Common approaches include improving building management practices, upgrading building services, optimising operating hours, improving controls and monitoring resource consumption more closely.
What is the difference between NABERS and Green Star?
NABERS measures actual operational performance of a building, while Green Star assesses the sustainability of a building's design, construction and operational attributes. The two frameworks are often used together.
Why do investors care about NABERS ratings?
NABERS ratings provide an independent measure of operational performance and efficiency. They can help investors assess asset performance, quality, identify potential risks and opportunities, support ESG reporting and better understand how buildings are positioned for long-term performance.
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