LEED-certified multifamily properties consistently receive higher rents than non-certified rental complexes, according to a Cushman & Wakefield study of two decades of data on Class A multifamily assets with 50 units or more.
From the first quarter of 2000 to the fourth quarter of 2021, LEED rent premiums averaged 3.1%. LEED rent premiums seem to come with a slightly lower vacancy rate, but the premiums more than make up for that impact.
LEED-certified multifamily assets also reap a sales premium. From 2012 to 2021, LEED-certified properties fetched 9.4% more in sales than non-certified assets.
Sustainability premiums for multifamily assets are expected to continue to grow due to access to preferential financing for sustainable properties and the increasing incorporation of sustainability frameworks within institutional investment portfolios. In addition, sustainability features are expected to become more important differentiators for prospective residents.
Related Stories
Codes and Standards | Jan 3, 2018
China Construction America faces billions of dollars in liability in lawsuit
Court filing alleges massive fraud and breaches of contract in Baha Mar Resort Project.
Codes and Standards | Jan 2, 2018
Smart building tech can reap utility savings of 8% to 18% in commercial buildings
Potential for increased deployment of smart building technology is great beyond early adopters.
Reconstruction & Renovation | Dec 21, 2017
Interactive map includes detailed information on historic New York City buildings
The New York City Landmarks Preservation Commission launched a new, enhanced version of its interactive map, Discover NYC Landmarks.
Codes and Standards | Dec 20, 2017
Moody’s says cities may face credit downgrades if they don’t address climate risks
Credit ratings giant will ask what communities are doing to mitigate risk exposure.
Codes and Standards | Dec 18, 2017
Schools with optimal indoor environments boost student performance and energy efficiency
World Green Building Council report confirms that lighting, indoor air quality, thermal comfort and acoustics impact learning.
Codes and Standards | Dec 14, 2017
Mayors sign Chicago Climate Charter; will strive to meet Paris accord goals
Pledge to push for more local authority to reduce emissions.
Codes and Standards | Dec 13, 2017
New report examines ongoing costs of green infrastructure options
The report compares solutions to reduce stormwater.
Codes and Standards | Dec 12, 2017
Total cost of structural fires in U.S. reached $328.5 billion in 2014
Costs associated with losses was $55.4 billion.
Codes and Standards | Dec 11, 2017
Steel-timber composite system proposed for mid- and high-rise buildings
Structural steel columns and beams support a cross-laminated timber floor system.
Codes and Standards | Dec 7, 2017
Many coastal states performing poorly to protect beaches, coastlines
The most vulnerable regions fare the worst in new study.
