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 | Jan 21, 2020
Contractors pay practices reviewed in new database
Fastest and slowest paying GCs revealed.
Codes and Standards | Jan 17, 2020
Several states with ambitious climate goals will have to restrict natural gas as a fuel
Buildings would have to heat and cook with electricity.
Codes and Standards | Jan 16, 2020
New solar-ready mandate affects commercial and residential buildings in St. Louis
All new buildings must have reserved rooftop sections for PVs.
Codes and Standards | Jan 15, 2020
Trump Administration blocks new light bulb efficiency standards
Move defies bipartisan 2007 law.
Codes and Standards | Jan 14, 2020
L.A.’s expedited permitting process credited with faster approvals on $1 billion project
Parallel Design-Permitting Process includes flagging elements for correction during conceptual design.
Codes and Standards | Jan 13, 2020
Kansas City is first in nation to offer free public transportation
Aim is to increase mobility to spur more economic activity.
Codes and Standards | Jan 9, 2020
Dept. of Defense will require beefed up cybersecurity standards in January
All contractors will have to demonstrate secure practices.
Codes and Standards | Jan 8, 2020
2019 Oregon Zero Energy Ready commercial code will boost efficiency by 14%
ASHRAE 90.1 is the basis for new code that went into effect Oct. 1.
Codes and Standards | Jan 8, 2020
Energy efficiency initiatives have significantly cut energy consumption per square foot
Lighting and space heating fell by more than 600 trillion Btu from 2003 to 2012.
Building Technology | Jan 7, 2020
Tariff whiplash for bifacial solar modules
Bifacial solar systems offer many advantages over traditional systems.
