Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Values

This study by researchers at the University of Cambridge and the University of Reading investigates how the environmental performance of a building is rapidly gaining importance as a metric in real estate investments. The report shows that compared to buildings in the same submarkets, eco-certified buildings have both a rental and sale price premium, likely due to three main drivers of price differences between certified and non-certified buildings: additional occupier benefits, lower holding costs for investors, and a lower risk premium.