Sustainable building certification and the rent premium: a panel data approach

Reichardt, A., Fuerst, F., Rottke, N. B. and Zietz, J. (2012) Sustainable building certification and the rent premium: a panel data approach. Journal of Real Estate Research, 34 (1). pp. 99-126. ISSN 0896-5803

Abstract/Summary

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.