News Article
October 29, 2011

Multiple Studies Document Green Buildings Add Value

Energy efficient green buildings have lower energy bills and interior designs that improve the occupants’ experience and worker productivity. But does all that translate to greater market value? Results from studies in the United States, Australia and the European Union say the answer is yes.



In the U.S., most available data shows increased value for ENERGY STAR- or LEED-certified buildings compared to standard buildings. That conclusion is based on ever more robust data covering 1.5 billion square feet of LEED-certified space and 2.5 billion square feet of ENERGY STAR-certified space in the U.S. today. In comparison with conventional buildings, studies in the U.S. have found that certified buildings have:   

 

  • Rental rates higher by 2 to 17 percent

  • Resale value improved by 5.8 to 35 percent

  • Occupancy rates higher by 0.9 to 18 percent

  • Operating expenses lower by 30 percent

  • Net operating income higher by 5.9 percent

  • Capitalization rates lower by 50 to 55 basis points

  • Productivity improved by 4.8 percent

 

Studies in Australia and the European Union affirm these results. In Australia, for buildings that are Green Star rated, studies report a value premium of 12 percent and an investment return 4 percent higher than for non-rated buildings. Buildings with a 5-star rating under the National Australian Built Environment Rating System (NABERS) delivered a 9 percent premium in value. In Europe, a study found that buildings with a green energy label achieved 6.5 percent higher rent than non-green buildings.



View Fact Sheet >>

 

October 2011

 



 

Related Article(s)