BuildingRating

Sharing Transparency for a More Efficient Future

Efficiency & Property Value

It stands to reason that energy efficient properties accrue higher market value. The efficient use of energy translates to lower operating costs and improved internal comfort. Reduced utility costs, enviromental sustainability, and better qulaity workspaces are more attractive to tenants; investors benefit from a more productive property.

And, in fact, dozens of research studies have proven that many commercial tenants, investors and homebuyers are indeed paying a premium to lease or buy energy-efficient properties, and that owners of efficient commercial buildings are experiencing higher occupancy rates and faster lease-up periods, increasing their operating income.

Policies and programs that increase transparency of building energy performance are helping drive these trends. Markets cannot value what they cannot comprehend. In the past, real estate markets have had poor information or no information at all related to building energy performance. Conveying actionable energy performance data to the market empowers consumers to compare the energy efficiency of buildings and incorporate building energy performance into leasing and purchasing decisions.

 GRAPHICS OF RECENT RESEARCH:

 

 

 

Efficiency and Value Studies

A full list of documents related to efficiency and value is available on our advanced search page.

Australia

COMMERCIAL

Building Better Returns: A Study of the Financial Performance of Green Office Buildings in Australia | Newell & MacFarlane, University of Western Sydney and N. Kok, Maastricht University | 2011

Green Cities 2011 | IPD Australia & New Zealand | 2011

RESIDENTIAL

Energy Efficiency Rating and House Price in the ACT | Australian Department of the Environment, Water, Heritage and the Arts | 2008

 

Europe

COMMERCIAL

The impact of energy labels and accessibility on office rents | N. Kok, Mastricht University and M. Jennen, CBRE Global Investors | 2013

The Value of Energy Labels in the European Office Market | N. Kok, Maastricht University and M. Jennen, RSM Erasmus and | 2011

RICS Research: Is Sustainability Reflected in Commercial Property Prices? | S. Sayce, S. Sundberg & B. Clements, Kingston University | 2010

RESIDENTIAL

The Value of Domestic Building Energy Efficiency: Evidence from Ireland | M. Hyland, R. C. Lyons & S. Lyons, University of Oxford | 2012

On the Economics of Energy Labels in the Housing Market | D. Brounen, Erasmus University and N. Kok, Maastricht University | 2009

  

United States

COMMERCIAL

Who Rents Green? Ecological Responsiveness and Corporate Real Estate | P. Eicholtz & N. Kok, Maastricht University and J. Quigley, University of California -Berkeley | 2012

Green Noise or Green Value? F. Fuerst & P. McAllister, University of Reading | 2011

Doing Well by Doing Good? Green Office Buildings | P. Eicholtz & N. Kok, Maastricht University and J. Quigley, University of California - Berkeley | 2010

Green Design and the Market for Commercial Office Space | J. Wiley & J. Benefield, College of Charelston and K. Johnson, Forida Internaitonal University | 2010

Investment Returns from Responsible Property Investments | G. Pivo, University of Arizona and J. Fisher, Indiana University | 2010

Do Green Buildings Make Dollars and Sense? | N. Miller, UC San Diego and D. Pogue, CBRE | 2009

New Evidence on the Green Building Rent and Price Premium | F. Fuerst & P. McAllister, University of Reading | 2009

How Risky are Sustainable Real Estate Projects? | J. Jackson, Texas A&M University | 2009

Does Green Pay Off? | N. Miller, UC San Diego and J. Spivey & A. Florence, CoStar | 2008

RESIDENTIAL

The Capitalization of Green Labels in the California Housing Market | M. Kahn, UCLA and N. Kok, Maasricht University | 2012 

Evidence of Rational Market Valuations of Home Energy Efficeincy | Rick Nevin & Gregory Watson, ICF | Appraisal Journal, 1998