Title

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

Authors

Authors

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

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

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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