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 | Oct 18, 2017
States impacted by hurricanes are improving their energy efficiency policies
Florida, Texas, rise in ACEEE state energy efficiency scorecard.
Codes and Standards | Oct 17, 2017
Updated versions of EnergyPlus and OpenStudio building energy modeling tools released
Open-source apps include enhancements for urban-scale modeling.
Codes and Standards | Oct 16, 2017
New, comprehensive insurance exhibit released in AIA 2017 contract document updates
Will allow AIA to make updates more frequently as insurance market changes.
Codes and Standards | Oct 12, 2017
New AIA contract document designates responsibilities for sustainable projects
Roles of architects, contractors outlined in E204–2017.
Codes and Standards | Oct 11, 2017
Data, transparency are keys to next steps in green building, says USGBC chief
Monitoring and comparing performance are critical to advancing sustainability goals.
Codes and Standards | Oct 10, 2017
New guidelines for quality control on application of membrane roof systems released
NRCA document provides guidance for on-site evaluation.
Codes and Standards | Oct 9, 2017
New app calculates maximum allowable heights for building occupancy types, classes of construction
The app streamlines compliance on various types of construction.
Codes and Standards | Oct 5, 2017
California lawmakers pass bill that requires GCs to pay wages of sub employees if subs fail to pay
The measure will go into effect in January if the governor signs it.
Codes and Standards | Oct 4, 2017
Ambitious but realistic increase in clean energy would cut GHG emissions by 80% in the U.S.
NRDC report says goal can be achieved with existing tools.
Codes and Standards | Oct 3, 2017
Reducing duct leakage is focus on latest green building standards updates
ASHRAE 189.1 broadens testing requirements to include more types of ducts.