Green Buildings Boast 3 Percent Higher Payoff
Commercial buildings with green certification rent for an average of 3 percent more per square foot, according to a study by John M. Quigley, a professor of economics and real estate at the University of California, Berkeley. Other studies come to similar findings.
The study further concludes that because of higher occupancy rates in green buildings, the effective rent premium is about 6 percent per square foot. And it says green buildings also command a higher sales price, in part because they use 10 percent less energy.
The study doesn’t consider the additional costs of building green buildings nor whether location plays a role.
Source: The Wall Street Journal/Real Time Economics, Keith Johnson (12/16/2009)
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