Certification Matters: Is Green Talk Cheap Talk?

Shaun Bond and Avis Devine

The Journal of Real Estate Finance and Economics, 2016, vol. 52, issue 2, 117-140

Abstract: There is an active and growing literature examining the rental rate, sales price, and occupancy premiums associated with sustainable or energy efficient certified real estate. To date, the focus has rested largely on office properties and for sale single family residential properties. We examine the rental rates achieved by green multifamily properties, providing the first look at the population of LEED market-rate apartments in the United States. We find an approximate 8.9 % rental rate premium associated with LEED apartments. Moreover, this research provides the first indication that LEED certification garners an additional premium over non-certified space that identifies as green, indicating the strength of the certification signal and contributing to the longstanding discussion on the merits of certification. Copyright Springer Science+Business Media New York 2016

Keywords: Energy efficiency; Sustainability; Rent premium; Multifamily; R11; R52; R58 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jrefec:v:52:y:2016:i:2:p:117-140

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DOI: 10.1007/s11146-015-9499-y

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