HVAC Breaking News

July 1, 2008: Study Says Green Buildings Earn Higher Rents, Have Higher Market Value

BERKELEY, Calif. - An analysis by the University of California, Berkeley, matching publicly available information on Energy Star and LEED-rated office buildings to a commercial data source detailing the characteristics of United States office buildings and their rental rates, found systematic evidence that rents for green offices are about 2 percent higher than rents for comparable buildings located nearby. Effective rents, i.e., rents adjusted for the occupancy levels in office buildings, are about 6 percent higher in green buildings than in comparable office buildings nearby.

The study also found that, at prevailing capitalization rates, conversion of the average non-green building to an equivalent green building would add more than $5 million in market value.

The analysis looked at data on 694 certified green buildings throughout the U.S. and 7,489 other office buildings located within a quarter mile of the certified buildings. Each green building was compared to nearby non-green buildings. The study notes that the average effective rent for the control buildings in the sample is $23.53 per square foot. At the average size of these buildings, the estimated annual rent increment for a green building is almost $309,000.

For more information, visit http://urbanpolicy.berkeley.edu/pdf/EKQ_Green_Buildings_040808.pdf.

Publication date: 06/30/2008

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2015 HARDI Fly-In

Highlights from HARDI's Congressional Fly-In in Washington, D.C. Post date: May 28, 2015.

Podcasts

NEWSMakers: Clint Schreck

Clint Schreck, general manager, Columbus Worthington Air, Columbus, Ohio, discusses winning Angie’s List Super Service Award, how to handle online reviews, and much more.

More Podcasts

ACHRNEWS

NEWS 06-01-15 cover

2015 June 1

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

HYDROCARBON REFRIGERANTS

The EPA has approved several hydrocarbon (HC) refrigerants for HVACR applications. Do you support the use of HCs?
View Results Poll Archive

HVACR INDUSTRY STORE

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con