Completed in 1988 and designed by acclaimed architect Harry Seidler AC OBE, the premium office tower at 225 George Street in Sydney was unlike most commercial buildings of its era.
The building incorporated an unusual thermal storage system, including around one million litres of ice storage in the car park basement and extensive heat recovery technology.
At the time, the objective wasn’t decarbonisation. It was pure economics. Grosvenor Place would produce ice overnight when electricity tariffs were cheaper, then use that stored cooling energy during the day. Heat generated during the process was recovered and used to produce hot water, reducing the need for gas-fired boilers.
Grosvenor Place was shifting energy usage long before today’s conversations about energy flexibility, says Contracts and Operations Manager Geoff Hilbourne. “Only, our operations team were doing it for cost and load smoothing rather than carbon neutrality.”
Those early design decisions have given Grosvenor Place a significant advantage. While many buildings are only now beginning the transition away from natural gas, approximately 90% of the tower’s energy consumption was already electrified.
Fast facts
A supersized footprint: Commercial buildings account for more than 50% of electricity consumption on Australia’s grid. During peak periods, that figure can approach 80%, according to the Green Building Council of Australia.
The next step: Electrification creates the foundation for energy flexibility. NABERS has published a feasibility study that explores how commercial buildings can shift when they use electricity to better align with renewable generation without compromising occupant comfort or business operations.
Buildings as batteries: Shifting just one-third of building peak demand across all commercial buildings to the middle of the day could save $1.7 billion annually, provide flexible capacity equivalent to 52% of Australia’s coal-fired generation fleet, finds a report from the Australia Institute and Buildings Alive.
The future is all-electric
Tenants increasingly want to occupy buildings that combine strong environmental performance with lower operational emissions. Across Australia’s CBD office markets, assets with 5.5–6-star NABERS ratings deliver 7% higher rents, 5.1% lower vacancy and 45 basis points lower yields, according to research from JLL.
All-electric buildings outperform this benchmark, attracting average rental premiums of 23%, 7.8% lower vacancy and 55 basis points sharper yields than the wider market.
Despite this, fully electrified offices remain relatively rare. JLL estimates that all-electric assets will represent only 15% of Sydney’s office stock and 7% of Melbourne’s by 2027.
As more occupiers pursue net zero carbon commitments – including 85% in Sydney, 82% in Melbourne and 97% in Canberra – competition for high-performing, low-emissions space is expected to intensify.
Grosvenor Place currently holds a 4-star NABERS Energy rating during a period of major refurbishments. Climate Active Carbon Neutral for Buildings certification demonstrates 100% of its purchased electricity is sourced from a government-accredited renewable energy provider.
“We’re seeing a clear shift in leasing conversations, with NABERS star performance a consistent point of focus,” says John Derrick, Grosvenor Place Executive Director. “Increasingly, organisations are prioritising spaces that support their net zero commitments, and our sustainability credentials – including carbon neutral certification – are playing a meaningful role in those decisions.”
The efficiency equation
Historically, NABERS Energy has assessed building performance largely through the greenhouse gas emissions associated with energy consumption. As Australia’s electricity grid becomes cleaner, emissions are a less useful measure of performance. By 2030, an all-electric building could produce very low emissions while still consuming large amounts of electricity.
To reward buildings that reduce emissions and energy demand, NABERS is updating its Energy rating. The star rating will place greater emphasis on energy efficiency, while renewable electricity use will be recognised separately through the Renewable Energy Indicator.
While electrification delivers long-term benefits, major upgrades can temporarily affect building performance. At Grosvenor Place, extensive plant replacement, controls upgrades and the integration of thermal storage mean some of the benefits may take time to be reflected in NABERS Energy results.
For Grosvenor Place’s NABERS Assessor, Steve Hennessy, the building’s achievements extend well beyond a single NABERS rating.
"The Grosvenor Place carbon neutral journey is laudable, particularly the team’s efforts to reduce emissions associated with waste and refrigerants, eliminate gas use and pursuing 100% renewable electricity. The management team has taken a genuine leadership position and should be proud of what they have achieved.”
Grosvenor Place was always built with the idea of being future proof. The energy transition wasn't part of the brief in 1988. But the building was ready for it.
Of its time, and ahead of its time
Grosvenor Place is celebrated as one of Harry Seidler’s most significant commercial buildings. In 1989, it was presented with the Australian Institute of Architects’ highest national award for commercial architecture.
The building wasn’t designed for net zero targets, electrification strategies or renewable energy integration. Yet many of the design decisions made in the early 1980s remain remarkably relevant today: external sunshades to reduce heat gain, heat recovery to minimise wasted energy and thermal storage that shifts energy use across time.
As custodians of a treasured piece of Australia’s architectural history, the Grosvenor Place team is both preserving the past and preparing for the future.
“We are still doing testing and tuning. Hot and cold-water storage provides great flexing opportunities but also adds complexity to the system. We've got most of the pieces in place,” Geoff says. “The NABERS process has helped us set a robust target and gives us a pathway to get there.”