The Case for Retrofitting Existing Buildings

In today’s disposable world, we seem to be always chasing the newest and shiniest properties to stay abreast of competitors, attract the best talent, and entice customers.

In the property and facilities management field, this is one of the greatest challenges, as most buildings will age gracefully. A lot of new technological developments mean existing or older buildings can no longer achieve high sustainability and occupant ratings, meaning they command lower rents, are less appealing, and diminish in value.

The case for retrofitting property to a modern standard is usually overlooked, and companies favor disposing of aging assets in order to make a quick transition and achieve the benefits and status required by modern building owners and occupiers.

“Retrofitting an older building is not for the faint-hearted, however, the case can make business sense and the numbers can stack up when all the cards are played in the right sequence.”

Let’s be honest. Retrofitting an older building is not for the faint-hearted, however, the case can make business sense and the numbers can stack up when all the cards are played in the right sequence. 

At Teachers Mutual Bank Limited, we have taken this approach, and for the last 12 years, have been systematically retrofitting our main sites in Sydney, Australia, from buildings relying on reheat electric systems for Air conditioning, using equipment that, however well-maintained, was long past its useful life. And the green bar is high, as we’re one of only a few banks to be named one of the World’s Most Ethical Companies for ten years, and recently became a B Corp. 

The process took countless hours of research identifying opportunities and exploring the many building performance and sustainability standards, as well as Government initiatives and incentives available for businesses undertakings such as retrofit works.

These efforts resulted in three separate lists: Low hanging fruit / Grants and/or Government supplements initiatives / Lifecycle.

Preparing a comprehensive proposal for the business in difficult economic times was a challenge in itself, particularly when further investment in owner-occupied buildings does not seem like the best place. 

Driving the process and working in live sites, displacing occupants, and implementing new technologies can be a steep learning curve; however being able to achieve the return on investment and successfully obtaining innovation grants, has been a game changer for our bank. We have gone so far in our achievements, including a long list of awards, international recognition for our determination, and foresight in sustainability.

We have big results from our aged building fleet. Since 2016, we have slashed our Scope 1 and 2 emissions by 56 percent while our assets grew by 88 percent, staff went up 18 percent, and our offices doubled to 12. Our investment of $2.8 million in PV, LEDS, EV cars, and energy efficiency is driven by mandatory rules. We just launched the most progressive EV car fleet policy in Australia: 100 percent EVS by 2027 and a ban on purchasing fossil fuel cars.