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Class B commercial properties gain more from LEED certification than Class A buildings

Green

Class B commercial properties gain more from LEED certification than Class A buildings

The rent advantage over non-LEED is about three times larger than Class A, according to CBRE.


By Peter Fabris, Contributing Editor | December 18, 2023
Image by 👀 Mabel Amber, who will one day from Pixabay - Class B commercial properties gain more from LEED certification than Class A buildings
Image by 👀 Mabel Amber, who will one day from Pixabay

Class B office properties that are LEED certified command a greater relative benefit than LEED-certified Class A buildings, according to analysis from CBRE.

The Class B LEED rent advantage over non-LEED is about three times larger than the premium earned by Class A LEED buildings. 

“Class B LEED properties have an average 180-basis point (bp) lower vacancy rate and a $9.18 per sq. ft. asking rent premium compared with non-LEED Class B properties,” CBRE says. “This is a wider delta than for the Class A cohort, where LEED buildings have a 160-bp lower average vacancy rate and a $3.75 per sq. ft. asking rent premium.”

The study focused on Boston because it has a significant number of LEED-certified buildings in the downtown area. One in three Class A buildings are certified in the city and one in 10 Class B buildings has this certification.

Average rent for 20,000 buildings studied was 31% higher for LEED structures than for non-certified buildings. Energy Star certification also boosted rents.

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