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
High-rise Construction | Jul 9, 2013
5 innovations in high-rise building design
KONE's carbon-fiber hoisting technology and the Broad Group's prefab construction process are among the breakthroughs named 2013 Innovation Award winners by the Council on Tall Buildings and Urban Habitat.
| Jul 8, 2013
RSMeans cost comparisons: hotels, motels, and apartment buildings
Construction market analysts from RSMeans offer construction costs per square foot for hotels, motels, and apartment buildings.
| Jul 3, 2013
Architects team with HUD to promote 'Rebuild By Design' competition for Hurricane Sandy recovery effort
The American Institute of Architects (AIA) today announced a communications campaign urging its membership to enter the “Rebuild by Design” multi-stage regional design competition announced by Department of Housing and Urban Development (HUD) Secretary Shaun Donovan on June 20.
| Jul 2, 2013
LEED v4 gets green light, will launch this fall
The U.S. Green Building Council membership has voted to adopt LEED v4, the next update to the world’s premier green building rating system.
| Jul 1, 2013
Report: Global construction market to reach $15 trillion by 2025
A new report released today forecasts the volume of construction output will grow by more than 70% to $15 trillion worldwide by 2025.
| Jun 28, 2013
Building owners cite BIM/VDC as 'most exciting trend' in facilities management, says Mortenson report
A recent survey of more than 60 building owners and facility management professionals by Mortenson Construction shows that BIM/VDC is top of mind among owner professionals.
| Jun 26, 2013
Commercial real estate execs eye multifamily, retail sectors for growth, says KPMG report
The multifamily, retail, and hospitality sectors are expected to lead commercial building growth, according to the 2013 KPMG Commercial Real Estate Outlook Survey.
| Jun 25, 2013
Mirvish, Gehry revise plans for triad of Toronto towers
A trio of mixed-use towers planned for an urban redevelopment project in Toronto has been redesigned by planners David Mirvish and Frank Gehry. The plan was announced last October but has recently been substantially revised.
| Jun 25, 2013
First look: Herzog & de Meuron's Jade Signature condo tower in Florida
Real estate developer Fortune International has released details of its new Jade Signature property, to be developed in Sunny Isles Beach near Miami. The luxury waterfront condo building will include 192 units in a 57-story building near high-end retail destinations and cultural venues.
| Jun 19, 2013
New York City considers new construction standards for hospitals, multifamily buildings
Mayor Michael Bloomberg’s administration has proposed new building codes for hospitals and multifamily dwellings in New York City to help them be more resilient in the event of severe weather resulting from climate change.