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
| Dec 15, 2011
NRDC charges Maine governor with weakening green wood requirement
The FSC program is administered through the Leadership in Energy and Environmental Design (LEED) and requires wood to be harvested in a sustainable way.
| Dec 15, 2011
Post-tornado, Tuscaloosa seeks to create walkable urban, retail areas
Block sizes initially were limited to a maximum perimeter of 1,750 feet, with no side of the block being longer than 500 feet.
| Dec 15, 2011
Allentown, Pa. city council asked to repeal union-friendly law
The mayor of Allentown, Pa. asked the City Council to repeal a year-old ordinance that forces contractors to hire union workers for large city projects funded with state and federal dollars.
| Dec 13, 2011
LEED-EB outpaces LEED for new construction
The U.S. Green Building Council's (USGBC's) LEED certifications for existing buildings standard is outpacing LEED for new buildings for the first time.
| Dec 13, 2011
Regulators charge pervasive abuse of construction workers in Connecticut
Federal and state regulators say they have uncovered what they call "widespread noncompliance" with minimum wage and overtime laws in Connecticut's construction industry.
| Dec 13, 2011
Philadelphia mayor signs order for project labor agreements
Philadelphia Mayor Michael Nutter signed an executive order establishing project labor agreements for major public works projects in Philadelphia.
| Dec 13, 2011
Improved code requirements for attic ventilation
The Roof Assembly Ventilation Coalition (RAVC) participated in the development of the code.
| Dec 12, 2011
LEED-EB Outpaces LEED for New Construction
The U.S. Green Building Council’s (USGBC’s) LEED certifications for existing buildings standard is outpacing LEED for new buildings for the first time.
| Dec 12, 2011
Philadelphia Mayor Signs Order for Project Labor Agreements
Philadelphia Mayor Michael Nutter signed an executive order establishing project labor agreements for major public works projects in Philadelphia.
| Dec 12, 2011
Improved Code Requirements for Attic Ventilation
The International Code Council (ICC) recently published the 2012 International Residential Code (IRC) that includes improved code requirements for balanced intake and exhaust for ventilated attics.
