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.
Related Stories
BIM and Information Technology | Sep 7, 2016
Energy Star Portfolio Manager tool updated to factor in waste management
The costs and benefits of managing 29 types of waste are now included.
Wood | Sep 6, 2016
Atlanta suburb prohibits wood-framed construction for high rises
The new building code prevents any structure with more than three stories from being built from a CLT frame.
Codes and Standards | Sep 1, 2016
Overuse of air conditioning hurts office productivity
A study found temperatures in the low 70s reduce worker performance.
Regulations | Aug 31, 2016
FEMA wants to toughen flood regulation on projects using federal funds
The proposal ‘would essentially rewrite the current 100-year flood standard.’
Sustainability | Aug 30, 2016
New federal project plans must include climate impacts
Agencies must quantify the specific impacts when possible.
Green | Aug 29, 2016
Vancouver, B.C., to require zero emissions on new buildings by 2030
No net GHG emissions will be allowed.
Codes and Standards | Aug 25, 2016
Freddie Mac extends efforts to fund multifamily energy/water efficiency projects
The Multifamily Green Advantage targets existing buildings.
Codes | Aug 24, 2016
Weak building codes no match for recent natural disasters, say industry experts
The recent floods and wildfires in Alberta are being cited as proof.
Legislation | Aug 24, 2016
World Trade Center contractor found guilty of minority-owned business fraud
The company used two minority firms as fronts in a nearly $1 billion scheme.
Codes and Standards | Aug 22, 2016
Federal construction contractors propose reforms to federal project delivery
Industry leaders offer how procurement system could be improved.