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Paper eres2016_288:
Does a Green-Certified Storefront Mean More Income? Estimating Financial Benefits of Certification for Space Users

id eres2016_288
authors Devine, Avis; Qingqing Chang
year 2016
title Does a Green-Certified Storefront Mean More Income? Estimating Financial Benefits of Certification for Space Users
source 23rd Annual European Real Estate Society Conference in Regensburg, Germany
summary Much research has been completed on income and valuation premiums to owners and operators of sustainable and energy efficient (SEE) real estate. However, little work examines the financial benefit to the space users, outside of decreased operations costs in office space. As the retail industry begins to adopt SEE certification, the implications for the space users are of utmost interest, as retailers may be unwilling to pay a rental rate premium for SEE certified space if there is not a user benefit. Since location-specific business income data is difficult to obtain, this research examines the question utilizing a novel proxy: retail bank branch deposits. Through an examination of deposit growth, it is determined that LEED certified branches have not only an increased probability of above-market-rate deposit growth, but also experience notably higher year-over-year deposit growth. Energy Star certification is also analyzed and found to offer little income-increasing benefit to the space user. These results are tested in an event study which validates the findings, and further indicates that the benefits of LEED extend years past initial certification, indicating the lasting income-related benefits of LEED certification for retail space users.
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
ratings
session Sustainable Real Estate
last changed 2017/11/18 16:16
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