Airmaster: Embedding sustainability through green leasing

Airmaster is an integrated building services provider operating across Australia and New Zealand, employing more than 1,200 people. As sustainability expectations have grown across the property and facilities sector, Airmaster has taken a proactive approach: embedding green clauses into its own leases to enable major efficiency upgrades and strengthen environmental accountability.

We spoke with Gary, Jack and Paul from Airmaster, all part of its sustainability working group, to explore how they’re getting results through green leasing.

What sparked Airmaster’s journey into green leasing?

Airmaster has been reporting its yearly emissions through the CitySwitch program for more than a decade, giving the business clear visibility of its carbon profile. On the back of this long-term reporting, we set our own internal energy-efficiency and carbon-reduction targets.

The turning point came with the new lease for our main office and factory in Scoresby, Victoria. For several years, sustainability upgrades were on hold while lease negotiations progressed with the property manager and as the ownership and management of the site evolved. The push for a longer-term lease, aligned with our growth plans, created the opportunity to finally lock in significant capital works.

With electricity representing a large share of our carbon footprint, we saw green leasing as a practical way to reduce both emissions and operating expenses, using the new Scoresby lease as the anchor project.

How does green leasing fit within Airmaster’s broader sustainability strategy?

As Airmaster has worked more closely with large clients, especially universities, major corporations and government agencies, sustainability requirements have become a routine part of tenders and contracts. Expectations around ethical sourcing, complying with modern slavery laws and carbon management are now standard.

Initially the business responded reactively. But with stronger internal targets, renewable-energy procurement and participation in programs such as CitySwitch, Airmaster shifted into a more proactive, leadership role.

Green leasing became a way to demonstrate credibility and embed sustainability into how Airmaster occupies and manages property. It moved sustainability from policy and marketing into the legal framework of the lease.

What was included in the Scoresby lease and other green leases?

The new lease at Scoresby and following green leases have included commitments to:

• install rooftop solar arrays sized to supply a significant portion of the site’s electricity use

• replace older, inefficient air-conditioning systems with modern, high-performance plant

• phase out harmful refrigerants such as R22 that deplete the ozone layer

• clearly document upgrade scopes, responsibilities and timelines through detailed heads of agreement and tailored lease clauses.

Gary highlighted that much of the heavy lifting occurred before the legal stage: technical scopes were prepared, options costed, and draft objectives / clauses developed, allowing owners and agents to see the value and practicality of the proposal upfront.

What business benefits have emerged?

• Energy savings: At the Melbourne Scoresby site, around 70% of daytime load can now be supplied by solar on sunny days.

• Reliability and comfort: New HVAC plant has reduced energy use and improved indoor comfort, with more reliable air conditioning and better temperature control.

• Environmental impact: Replacing R22 systems and installing solar helped reduce scope 2 emissions by around 20% in 2024.

• Employee morale: Visible sustainability initiatives, such as solar panels and improved comfort, have had a positive effect on staff morale and pride in the workplace.

• Market credibility: Demonstrating action rather than intention has strengthened Airmaster’s environmental social governance (ESG) profile and credibility with clients, supporting major bids and long-term relationships.

Did you quantify the benefits beforehand?

Yes. Solar projects were modelled to achieve payback in under 5 years in Victoria and even faster in Queensland due to higher solar yields. This financial modelling, combined with clear emissions and comfort benefits, helped secure internal board approval for longer-term leases and capital commitments.

How did you choose which sites to prioritise?

We prioritised sites where we were the sole tenant, giving full control over building operations and where lease renewals were pending. Scoresby became the flagship because it is both our main office and a key factory site. Lease renewal was the strategic trigger. Landlords are far more open to capital upgrades when negotiating longer terms, particularly when those upgrades improve asset value and keep tenants.

How did you work with owners, agents and funders?

We took the lead on scoping and managing projects, working with agents and talking to owners with a clear, evidence-based business case.

Funding structures varied by site:

• Cost sharing: in some leases, upgrades were cost-shared through fixed monthly contributions over the lease term (for example, a 60-month clause at around $1,000 per month).

• Owner-funded upgrades: at sites such as Rocco Drive, owners fully funded solar and heating ventilation air conditioning (HVAC) replacements, recognising the uplift in asset value and tenant appeal.

• Rent adjustments: in some cases, rent increases were part of the package to reflect improved building performance.

Gary noted the complexity of securing government incentives and ensuring grants, depreciation benefits and financing structures aligned with lease terms and responsibilities. Clear communication and early planning around these elements were critical to success.

The overarching lesson: make it easy for everyone to say yes. By coordinating the technical, financial and legal work, Airmaster built trust and accelerated decision-making.

How did you bring the internal team on board?

A long-standing sustainability working group, chaired by Jack, meant there was already internal momentum. Staff were motivated by reducing emissions and improving workplace comfort. The story was communicated internally and externally, reinforcing how these projects support Airmaster’s values and market positioning.

Seeing measurable results – lower bills, reliable air conditioning, visible solar arrays – created healthy competition between offices and departments, and sparked interest in tracking and comparing performance.

What challenges did you face?

• Timing and negotiation: sustainability projects at Scoresby were delayed until the new lease was finalised, partly due to changes in property management and discussions about longer-term lease commitments.

• Governance and approvals: securing board sign-off for longer leases and capital allocations required clear payback modelling and risk analysis.

• Unplanned costs: additional works, such as installing safe roof-access platforms around the solar system, added complexity and cost.

Despite these hurdles, the long-term operational and reputational benefits outweighed the challenges.

What lessons would you share with other organisations?

• Start early: begin planning sustainability efforts well before lease negotiations. Use upcoming renewals as strategic windows to embed upgrades.

• Do your homework: have technical options, costs, incentives and benefits modelled upfront.

• Lead the process: take ownership of scoping and coordination. Don’t expect owners or agents to do all the legwork.

• Communicate clearly: explain how the works improve asset value, reduce risk and benefit both landlord and tenant.

• Use data: emissions reporting and energy tracking provide the foundation for credible targets and compelling business cases.

What’s next?

Building on the Scoresby experience and other key sites, Airmaster plans to apply green leasing principles to all future lease renewals and new premises. Future plans include:

• advanced building automation and controls to fine-tune performance

• water conservation measures and more efficient equipment

• enhanced sub-metering and energy tracking across offices to encourage friendly competition and continuous improvement

• preparing for mandatory climate reporting, using green leasing as a tangible pillar of their response.

The ambition is simple: make sustainability business as usual in how Airmaster operates, negotiates and innovates.