As Australia’s commercial property sector braces for a wave of capital recycling, one message is clear: sustainability is no longer optional, it’s a core driver of value and deal certainty.
Cushman & Wakefield’s latest Exit Readiness Guide underscores how ESG considerations have shifted from a peripheral concern to a decisive factor in acquisition strategies.
“Buyers are asking tougher questions, and those questions now routinely extend to sustainability,” says Matt Clifford, Head of Sustainability Services, APAC. “If sellers aren’t prepared to answer them, they risk shrinking the bidder pool and eroding pricing power. Exit readiness today means being proactive about sustainability, not just compliance, but positioning your asset as resilient and future-proof.”
The report outlines five practical steps for vendors: mapping an asset’s sustainability profile, tailoring the narrative to buyer priorities, planning and prioritising improvements, securing certifications and disclosures, and bringing a trusted message to market. These steps are designed to reduce uncertainty and prevent inflated assumptions during due diligence.
Mr Clifford highlights a key takeaway for the Australian market: certifications matter more than ever. “Schemes like NABERS are now baseline expectations. Investors want verified data and clear roadmaps to net zero. If you can demonstrate alignment with CRREM pathways and climate risk mitigation, you’re not just ticking a box; you’re protecting value.”
Location and tenant profile also play a role. “Core investors want stability and resilience, while value-add players look for upside potential,” Mr Clifford explains. “In both cases, visibility of ESG performance and future upgrade feasibility is critical. It’s about controlling the narrative and translating technical sustainability reports into commercial language that investment committees can act on.”
Mr Clifford said for Australian vendors, the message is simple: start early. “Sustainability exit readiness isn’t a last-minute exercise; it’s a long-term strategy that begins during the hold period. The market is moving fast. Those who prepare now will lead the next cycle.”
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