 BEPI Article Recap:
As California leads the nation in a green revolution, there's been a lot of debate about the economic costs and benefits of environmental policies and practices.
Office buildings constructed to the latest energy-saving standards, the study found, rent for more than comparable structures.
These energy-efficient buildings also fetch a higher price when they change hands. Being green, in other words, can earn you green.
Researchers at the Center for the Study of Energy Markets examined records for 10,000 office buildings, their rental rates and sales prices.
Their study concluded that, after controlling for the buildings' quality and location, rental rates for "green" buildings were 3 percent higher per square foot than rents for otherwise identical buildings.
"Effective rents," after controlling for occupancy levels, were 6 percent higher. And sales prices were around 16 percent greater for the energy-efficient buildings.
The study found that each $1 in energy cost savings in a building with an Energy Star rating meant about $18 in increased value.
The premium went beyond the value of the energy savings in part because of the intangible value of the Energy Star label.
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Mentioned:
Carbon Offsets: No
Green Building:Yes
Energy Technology:No
Property:
Corporations:
University of California
People:
BEPI Published Date: September 23, 2009
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