Sustainable Building Certification and the Rent Premium: A Panel Data Approach
Abbreviated Journal Title
J. Real Estate Res.
MARKET; PERFORMANCE; GOODS; PRICE; Business, Finance; Economics
This paper investigates whether obtaining sustainable building certification entails a rental premium for commercial office buildings and tracks its development over time. To this aim, both a difference-in-differences and a fixed-effects model approach are applied to a large panel dataset of office buildings in the United States in the 2000-2010 period. The results indicate a significant rental premium for both ENERGY STAR and LEED certified buildings. Controlling for confounding factors, this premium is shown to have increased steadily from 2006 to 2008, followed by a moderate decline in the subsequent periods. The results also show a significant positive relationship between ENERGY STAR labeling and building occupancy rates.
Journal of Real Estate Research
"Sustainable Building Certification and the Rent Premium: A Panel Data Approach" (2012). Faculty Bibliography 2010s. 3182.