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 16, 2016
Development team picked for largest Passive House project in North America
The 24-story curved building would be 70% more efficient than comparable housing in New York City.
Multifamily Housing | May 12, 2016
Micro apartment complex planned for artsy Austin district
Indie Apartments will consist of 139 one- and two-bedroom units at 350- and 520-sf each.
Mixed-Use | May 1, 2016
A man-made lagoon with a Bellagio-like fountain will be the highlight of a mixed-use project outside Dallas
Construction will soon begin on housing, retail, and office spaces.
Senior Living Design | Apr 14, 2016
Creating a home for eldercare using the ‘Green House’ design concept
VOA Associates’ Douglas King offers design considerations in implementing the Green House concept in eldercare for continuing care retirement communities.
Multifamily Housing | Apr 7, 2016
Multifamily and Specialized Housing projects honored in 2016 AIA Housing Awards
A San Francisco low-income mixed-use complex, a Los Angeles homeless veterans housing facility, and a series of student residential buildings at UMass were among the winners.
Multifamily Housing | Mar 10, 2016
Access and energy control app clicks with student housing developers and managers
Ease of installation is one of StratIS’s selling features.
Multifamily Housing | Mar 7, 2016
Multifamily developers face steep costs for violating Fair Housing Act
Designers without previous multifamily experience could overlook key provisions.
High-rise Construction | Mar 3, 2016
HOK’s Hertsmere House will be Western Europe’s tallest residential tower
Recently approved for development, the 67-story building will have more than 900 units.
University Buildings | Feb 29, 2016
4 factors driving the student housing market
In the hyper-competitive higher education sector, colleges and universities view residence halls as extensions of their academic brands, both on and off campus.
Multifamily Housing | Feb 24, 2016
Senior housing sector experiences record-setting year, says CBRE
Senior housing occupancy is at its highest level since 2007, and 2015 was a record year for sales and institutional transactions, according to CBRE.