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.
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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.
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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.
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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.
Codes and Standards
LEED multifamily properties fetch higher rents and sales premiums
LEED rent premiums averaged 3.1% in 2020 and 2021.
