Szumilo, N;
Fuerst, F;
(2012)
The Operating Expense Puzzle of US Green Office Buildings.
SSRN: Amsterdam, Netherlands.
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Abstract
Cost savings from efficiency gains are at the core of the green building business case. Significantly lower energy bills are said to be a major factor in the green rent premium that has been observed in earlier studies. Our study tests this relationship by, inferring energy costs from operating expenses for a large dataset of US office buildings and relating them to the rental rates in a hedonic framework. We find that eco-certification is associated with a higher than anticipated total energy expenditure. While our dataset does not contain a direct measure of actual energy consumption, this result puts the cost-saving argument into question. By contrast, this study confirms earlier findings of a green rent premium but it appears that this premium might be an effect of factors unrelated to a tenant’s operating expenses.
| Type: | Working / discussion paper |
|---|---|
| Title: | The Operating Expense Puzzle of US Green Office Buildings |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.2139/ssrn.2166028 |
| Publisher version: | https://dx.doi.org/10.2139/ssrn.2166028 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Green buildings, eco-certification, commercial real estate, pricing of energy efficiency |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10103135 |
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