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
Green | May 31, 2016
Miami Beach requires developers to meet green standards or pay a fee
Applies to structures larger than 7,000 sf.
Codes and Standards | May 27, 2016
Better enforcement needed for successful implementation of energy efficiency policies
Commercial buildings the focus of recent code initiatives.
Codes and Standards | May 25, 2016
LEED Dynamic is worth the effort, says commercial real estate executive
San Diego office tower is California’s first office building to receive LEED Dynamic plaque in recertification.
Codes and Standards | May 24, 2016
Ontario planning to spend $7 billion on wide-ranging climate change plan
Includes financial incentives to retrofit buildings.
Codes and Standards | May 23, 2016
Facility managers say Internet of Things, analytics will impact maintenance soon
More reliable data needed for optimal results from the technology.
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
Codes and Standards | May 19, 2016
Asphalt roofing group publishes updated shingle installation guide
Technical manual provides best practices for roofing professionals.
Codes and Standards | May 16, 2016
EPA proposes new stormwater discharge regulations for construction sites
Would apply to sites of one or more acres.
Roofing | May 16, 2016
New guide focused on increasing energy and structural performance with raised-heel trusses
Higher trusses simplify attic ventilation, leave more space for insulation.
Codes and Standards | May 11, 2016
Current California seismic codes provide safety, resiliency, but needed upgrades present challenge
Los Angeles requires seismic retrofits, but other cities do not.
