Class B office properties that are LEED certified command a greater relative benefit than LEED-certified Class A buildings, according to analysis from CBRE.
The Class B LEED rent advantage over non-LEED is about three times larger than the premium earned by Class A LEED buildings.
“Class B LEED properties have an average 180-basis point (bp) lower vacancy rate and a $9.18 per sq. ft. asking rent premium compared with non-LEED Class B properties,” CBRE says. “This is a wider delta than for the Class A cohort, where LEED buildings have a 160-bp lower average vacancy rate and a $3.75 per sq. ft. asking rent premium.”
The study focused on Boston because it has a significant number of LEED-certified buildings in the downtown area. One in three Class A buildings are certified in the city and one in 10 Class B buildings has this certification.
Average rent for 20,000 buildings studied was 31% higher for LEED structures than for non-certified buildings. Energy Star certification also boosted rents.
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