How does environmental efficiency impact on the rents of commercial offices in the UK?

Franz Fuerst and Jorn van de Wetering

Journal of Property Research, 2015, vol. 32, issue 3, 193-216

Abstract: The aim of this study is to investigate whether offices in the UK with an environmental label command price premiums when compared to non-labelled offices. The de facto standard for sustainability in the UK is the Building Research Establishment Environmental Assessment Method (BREEAM). BREEAM is a building quality indicator that investigates a range of environmental criteria, awards credits based on the degree to which these criteria are represented in a building and then awards a rating based on the total number of credits that have been achieved. This research investigates the effect of BREEAM ratings on observed contract rents in the UK and as such provides a potentially stronger empirical test of the hypothesis than previous appraisal-based studies. The market impact of BREEAM ratings is investigated, using a control sample of non-BREEAM-rated office buildings throughout the UK. To achieve this, a data set is used that contains 19,509 commercial office lease transactions that were completed from 2006 to 2010. The results indicate that a premium exists for BREEAM-certified buildings. The results also indicate that the premium shows variations during the study period and that premiums vary depending on the year of construction and certification.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.1080/09599916.2015.1047399 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jpropr:v:32:y:2015:i:3:p:193-216

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJPR20

DOI: 10.1080/09599916.2015.1047399

Access Statistics for this article

Journal of Property Research is currently edited by Bryan MacGregor

More articles in Journal of Property Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().