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 2, 2017
Nationwide retrofit strategy in Canada could cut 51% of emissions from large buildings
The roadmap provides government and industry with a targeted plan.
Codes and Standards | Sep 28, 2017
Resources available for new OSHA respirable crystalline silica regulation
NRCA offers compliance tools for contractors.
Codes and Standards | Sep 28, 2017
New tool compares HVAC system efficiency
IAPMO and Hydronics Industry Alliance unveil BEST to evaluate systems in early design phase.
Codes and Standards | Sep 26, 2017
Anti-drone technology can ward off unauthorized drone flights
The technology can be used to prevent terrorist attacks and spying.
Codes and Standards | Sep 25, 2017
How-to guide to renovating shopping centers available
E.U. research project focuses on energy efficiency and occupant comfort.
Codes and Standards | Sep 21, 2017
After construction crane collapses during Irma, regulations questioned
Cranes rated for 140 mph winds didn’t hold up to 100 mph gusts.
Codes and Standards | Sep 20, 2017
Energy efficiency measures pay off in some not-so-obvious ways
Access to better financing, tax incentives, rent premiums, among the benefits to greener buildings.
Codes and Standards | Sep 19, 2017
Benchmarking regulations prompt jump in green certified properties
2016 saw a slight rise in total certified U.S. green office space.
Codes and Standards | Sep 18, 2017
Changes likely to come to federal wetlands regulations
However, states may step up regulations as feds relax them.
Codes and Standards | Sep 14, 2017
Gentrification means a new mindset for city planners
Rising rents elicit reexamination of zoning principles.
