Green buildings are already on the way to becoming global practice for residential and non-residential buildings and the real estate actors around the world have developed business models to build profitable businesses with green buildings. These green buildings have energy-efficient building design and technologies. In Germany Commercial and office buildings in central urban locations are found in the vast majority of green buildings. Mirvac is developing and operating its first build-to-rent property in Sydney, Australia.
It is a model which has been increasingly interested in real estate developers and its build-to-rent creates a new asset class with long-term predictable cash flows as well as promote to other investors. The purpose of these built buildings has high-quality rental housing and low operating costs due to their energy-efficient features. By use of renewable energy installations, no interruptions in services related to utilities such as water and electricity.
Build-to-rent caters to a new type of customers in the Australian homeowner centered market. Apartments are rented with an average premium of 5% above market rates. Utilities (gas, water, electricity) remain at the charge of the customers. All additional costs for high-energy performance and amenities are recovered through the premium