Sustainable Building Certification and the Rent Premium: A Panel Data Approach

    Authors

    A. Reichardt; F. Fuerst; N. B. Rottke;J. Zietz

    Comments

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    Abbreviated Journal Title

    J. Real Estate Res.

    Keywords

    MARKET; PERFORMANCE; GOODS; PRICE; Business, Finance; Economics

    Abstract

    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 Title

    Journal of Real Estate Research

    Volume

    34

    Issue/Number

    1

    Publication Date

    1-1-2012

    Document Type

    Article

    Language

    English

    First Page

    99

    Last Page

    126

    WOS Identifier

    WOS:000301320900005

    ISSN

    0896-5803

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