LEED-certified multifamily properties consistently receive higher rents than non-certified rental complexes, according to a Cushman & Wakefield study of two decades of data on Class A multifamily assets with 50 units or more.
From the first quarter of 2000 to the fourth quarter of 2021, LEED rent premiums averaged 3.1%. LEED rent premiums seem to come with a slightly lower vacancy rate, but the premiums more than make up for that impact.
LEED-certified multifamily assets also reap a sales premium. From 2012 to 2021, LEED-certified properties fetched 9.4% more in sales than non-certified assets.
Sustainability premiums for multifamily assets are expected to continue to grow due to access to preferential financing for sustainable properties and the increasing incorporation of sustainability frameworks within institutional investment portfolios. In addition, sustainability features are expected to become more important differentiators for prospective residents.
Related Stories
| Jul 26, 2012
DOE/ASHRAE design guide aims to cut energy use at hospitals, schools, retail stores
The Advanced Energy Design Guidelines from the Department of Energy and the American Society of Heating, Refrigerating and Air Conditioning Engineers aims to provide ways for hospitals, schools, and large retail buildings to trim their energy consumption by 50%.
| Jul 19, 2012
Bayview Property Managers agrees to record $800,000 building code fine
A San Francisco property-management company has agreed to pay a record $800,000 civil fine for hundreds of building code violations at rental properties.
| Jul 19, 2012
Glass ‘biodome’ helps Parkview Green FangCaoDi project in Beijing achieve LEED Platinum
A glass envelope acting as a kind of biodome encapsulates four mixed-use towers at Parkview Green FangCaoDi, an 800,000 sf mixed-use development in Beijing. The glass structure helped the development to achieve LEED Platinum certification.
| Jul 19, 2012
UMass-Boston's Bevington: 'Financing alternatives crucial to energy-efficiency upgrades'
It’s conceivable that innovation in project finance can do for building efficiency in the coming century what 30-year mortgages did for home ownership in the last, this article asserts.
| Jul 19, 2012
NYC eases building code to create ‘micro apartments’ in Kips Bay
New York City has implemented a program to encourage construction of "micro-apartments" in the Big Apple, where rents are exorbitant and the number of singles is on the rise.
| Jul 19, 2012
NRCA: Roofing insulation performance, local climate keys to computing R-value
To minimize the loss of thermal resistance in design, the R-value of roof insulation should be computed based on the actual performance of the insulation material and the local climate, says the National Roofing Contractors Association.
| Jul 16, 2012
Business school goes for maximum vision, transparency, and safety with fire rated glass
Architects were able to create a 2-hour exit enclosure/stairwell that provided vision and maximum fire safety using fire rated glazing that seamlessly matched the look of other non-rated glazing systems.
| Jul 12, 2012
Federal budget chief to explain impact of pending defense cuts before Congress
Office of Management and Budget Director Jeffrey Zients is scheduled to testify before the House Armed Services Committee Aug. 1 to explain the possible effects of $500 billion in defense cuts on U.S. companies, including those in the design and construction industry.
| Jul 12, 2012
Pennsylvania legislature moves to prevent undocumented workers on public construction projects
Legislation to prevent undocumented workers from being hired by construction companies working on state-funded projects passed the Pennsylvania Legislature.
| Jul 12, 2012
New York’s One Bryant Park Bank of America tower is first new high-rise to achieve LEED Platinum
The new One Bryant Park Bank of America tower in midtown Manhattan is the first new commercial high-rise to achieve LEED Platinum certification.
