Energy behaviour in offices and the impact on pricing decisions

Jorn van de Wetering and Franz Fuerst

ERES from European Real Estate Society (ERES)

Abstract: Since 2008 in the UK the operational energy consumption of premises that are regularly accessed by members of the public has been assessed on an annual basis. Details of these assessments are published as Display Energy Certificates (DECs). A significant number of these premises can be categorized as commercial office space. This represents an opportunity to investigate the relationship between operational energy assessment ratings and value.By supplementing the energy assessment data recorded on DECs with market transaction data, this study investigates the effects of operational energy certification on rental values. DECs are annually assessed and the significance of the relationship between energy consumption and value can therefore be assessed over time. This research also applies hedonic price modelling techniques to control for other factors that affect office rental value in order to determine whether there is a significant relationship between operationally energy efficient buildings in the UK and values, particularly when compared to their relatively energy inefficient counterparts.

Keywords: Commercial Office Space; Display Energy Certificate; Environmental Assessment Methods; Hedonic Pricing Method; Rateable value (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2017-07-01
New Economics Papers: this item is included in nep-ene and nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2017_301

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