Currently Reading

LEED-certified offices earn higher rents than non-sustainable properties

Codes and Standards

LEED-certified offices earn higher rents than non-sustainable properties

Are also more resilient to dips in real estate market.


By Peter Fabris, Contributing Editor | September 15, 2021
An open office

Courtesy Pixabay

LEED-certified buildings consistently earn higher rents than non-LEED properties, according to new research from Cushman & Wakefield.

Since 2015, rents for LEED-certified buildings have averaged 11% higher than those of non-LEED properties. The research also indicates that newly delivered LEED buildings were more resilient during times when the real estate market softened.

Since 2018, vacancies in LEED properties have fallen sharply. Even prior to the pandemic, LEED vacancy fell below that of non-LEED properties.

Cushman forecasts that by 2023, about 80% of investors intend to incorporate ESG into their commercial real estate strategy. A potential drag on that trend is that achieving ESG milestones through LEED is typically is more expensive than other strategies. To date, LEED certified buildings account for just 2.5% of total urban office properties in the U.S.

Related Stories

Codes and Standards | Sep 22, 2021

Group proposes Carbon Use Intensity metric for new buildings

Plan would track embedded carbon on projects.

Codes and Standards | Sep 22, 2021

Cities need to step up flood mitigation efforts to save lives

Recent storms highlight climate change dangers.

Codes and Standards | Sep 21, 2021

Steps to improve ventilation for Covid can combat colds and flu

New look at airborne disease spread shows time viruses linger in air may have been underestimated.

Codes and Standards | Sep 15, 2021

USGBC will change leaders, conduct strategic review

Aims to ensure organization is ‘well positioned to scale its work in the post-pandemic world’.

Codes and Standards | Sep 7, 2021

Boston turns to developer fees to fund flood protection infrastructure

Assessments on commercial properties will help build seawall and other protective measures.

Codes and Standards | Sep 3, 2021

Low-cost methods can have substantial impact on reducing embodied carbon

Whole-building design, material substitution, and specification strategies can slash carbon by up to 46%.

Codes and Standards | Sep 2, 2021

Case for power resiliency in buildings grows with more disaster and outages

Essential businesses like data centers, hospitals are first adopters of new storage systems.

Codes and Standards | Aug 31, 2021

UK industry group wants mandatory whole-life carbon assessments of buildings

Aims to address hidden emissions embedded in supply chains.

Codes and Standards | Aug 31, 2021

Home electrification will require code upgrades

Residential electric panel capacity must be increased.


Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: