International Green Building Adoption Index 2018

In this report, we are expanding the U.S. Green Building Adoption Index to the global real estate market, seeking to measure the adoption of green certification programs across several international real estate markets. Information on market size (number of buildings and/or square footage of space) is provided by the local teams of CBRE, while the numerator of each index includes a wide variety of "green" and energy certification schemes, such as BOMA BESt, BREEAM, DGNB, HQE, LEED, NABERS, and Green Star (see Appendix A for an overview of schemes). This International Green Building Adoption Index (IGBAI) is similar in spirit to the U.S. Green Building Adoption Index described above, and initially covers 10 cities in Australia, Canada, and Europe. Each market is covered in detail in this report, including a detailed discussion of the methodology

U.S. Green Building Adoption Index 2018

Since its inception in 2014, the Green Building Adoption Index, developed by CBRE and Maastricht University, has helped the commercial real estate market measure and understand the importance of “green” buildings, by tracking the adoption of green building certifications over time.The 2018 Green Building Adoption Index shows that across the 30 largest U.S. office markets, about 4,700 buildings, representing more than 41% of commercial space in those markets, have now been certified as “green,” the highest total in the index’ history. This year’s #1 market is again Chicago, followed by San Francisco and, newly rising, Atlanta

On the Value of Environmental Certification in the Commercial Real Estate Market

A significant part of the global carbon externality stems from the real estate sector. Environmental certification is often hailed as an effective means to resolve the information asymmetry that may prevent markets from effectively pricing the energy performance of buildings. This study analyzes the adoption and financial outcomes of environmentally certified commercial real estate over time. We document that nearly 40% of space in the 30 largest U.S. commercial real estate markets holds some kind of environmental certification in 2014, as compared to less than 5% in 2005. Tracking the rental growth of 26,212 office buildings, we measure the performance of environmentally certified real estate over time. We document that certified office buildings, on average, have slightly higher rental, occupancy and pricing levels, but do not outperform non-certified buildings in rental growth over the 2004-2013 period. Further performance attribution analysis indicates that local climate conditions, local energy prices and the extent of certification lead to significant heterogeneity in market pricing. On aggregate, these findings provide some evidence on the efficiency of the market in the adoption and capitalization of environmental characteristics in the commercial real estate market

International Green Building Adoption Index 2018

In this report, we are expanding the U.S. Green Building Adoption Index to the global real estate market, seeking to measure the adoption of green certification programs across several international real estate markets. Information on market size (number of buildings and/or square footage of space) is provided by the local teams of CBRE, while the numerator of each index includes a wide variety of "green" and energy certification schemes, such as BOMA BESt, BREEAM, DGNB, HQE, LEED, NABERS, and Green Star (see Appendix A for an overview of schemes). This International Green Building Adoption Index (IGBAI) is similar in spirit to the U.S. Green Building Adoption Index described above, and initially covers 10 cities in Australia, Canada, and Europe. Each market is covered in detail in this report, including a detailed discussion of the methodology

Energy efficiency and economic value in affordable housing

Strong rental protection in the affordable housing market often prohibits landlords from charging rental premiums for energy-efficient dwellings. This may impede (re)development of energy efficient affordable housing. In the netherlands, affordable housing institutions regularly sell dwellings from their housing stock to individual households. If they can sell energy efficient dwellings at a premium, this may stimulate investments in the environmental performance of homes.we analyze the value effects of energy efficiency in the affordable housing market, by using a sample of 17,835 homes sold by dutch affordable housing institutions in the period between 2008 and 2013. We use energy performance certificates to determine the value of energy efficiency in these transactions. We document that dwellings with high energy efficiency sell for 2.0–6.3% more compared to otherwise similar dwellings with low energy efficiency. This implies a premium of some eur 3,000 to eur 9,700 for highly energy efficient affordable housing