LEED-certified offices earn higher rents than non-sustainable properties

LEED-certified buildings consistently earn higher rents than non-LEED properties, according to new research from Cushman & Wakefield.

Since 2015, rents for LEED-certified buildings have averaged 11% higher than those of non-LEED properties. The research also indicates that newly delivered LEED buildings were more resilient during times when the real estate market softened.

Since 2018, vacancies in LEED properties have fallen sharply. Even prior to the pandemic, LEED vacancy fell below that of non-LEED properties.

Cushman forecasts that by 2023, about 80% of investors intend to incorporate ESG into their commercial real estate strategy. A potential drag on that trend is that achieving ESG milestones through LEED is typically is more expensive than other strategies. To date, LEED certified buildings account for just 2.5% of total urban office properties in the U.S.