Institute of Business and Economic Research, University of California at Berkeley, Working Paper No. W08-001
In this study, the authors establish some of the first links between “green buildings” — that is, properties built with an emphasis on increasing energy efficiency and minimizing environmental impact — and higher rental rates and increased property values. Using a control group of nearly 7,500 commercial real estate buildings and comparing that group to nearly 694 green properties within a quarter mile of them, the authors found that landlords could command 2 percent higher rental fees and expect higher market values for their green buildings — nearly US$5 million higher, on average. The research suggests that consumers may be willing to pay a premium for socially responsible properties and landlords can use green certification programs as an effective marketing tool.
For commercial real estate owners, investing in green building techniques can add considerably to revenue and to profitability.