Eco-Labeling, Rents, Sales Prices and Occupancy Rates: Do Leed and Energy Star Labeled Offices Obtain Multiple Premia?

Posted: 1 Dec 2010

See all articles by Franz Fuerst

Franz Fuerst

University of Cambridge - Department of Land Economy; University of Melbourne; City University of New York - Center for Urban Research

Patrick M. McAllister

University of Reading - Department of Real Estate and Planning

Date Written: November 29, 2010

Abstract

Drawing upon a large dataset of Energy Star and LEED labeled commercial office properties in the US, this paper investigates the effect of eco-labeling on rents, sale prices and occupancy rates. It differs from the first pioneering studies on this topic in that it analyzes a more comprehensive and updated datasets and seeks to resolve some of the methodological issues noted in these earlier studies. Using an OLS and quantile hedonic framework regression, we test whether the presence of an eco-label has a significant positive effect on rental rates, sale prices and occupancy rates. Finally, we explore whether eco-labeled properties have been affected disproportionately by the recent downturn in the commercial real estate market.

JEL Classification: Q5

Suggested Citation

Fuerst, Franz and McAllister, Patrick M., Eco-Labeling, Rents, Sales Prices and Occupancy Rates: Do Leed and Energy Star Labeled Offices Obtain Multiple Premia? (November 29, 2010). 46th Annual AREUEA Conference Paper, Available at SSRN: https://ssrn.com/abstract=1717092

Franz Fuerst (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://www.landecon.cam.ac.uk/directory/dr-franz-fuerst

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

City University of New York - Center for Urban Research

CUNY The Graduate Center
New York, NY 10011
United States

Patrick M. McAllister

University of Reading - Department of Real Estate and Planning ( email )

Reading RG6 6AW
United Kingdom

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