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

Last Updated: 
9-9-2016

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.