Energy-efficient buildings are attracting rental premiums of more than 6%, a new study has claimed.
The RICS-commissioned research, published today, also found that “green” buildings were worth 16% more than standard stock.
The institution said its study, Doing well by doing good?, was the first “credible evidence” of the economic value of certifying sustainable buildings in the commercial sector.
It found that buildings in the US with a high Energy Star rating attracted 3% per sq ft more rent compared with non-green buildings of the same size, location and function.
Looking at effective rents, taking into account rent-free periods and other concessions, the premium rose to 6%.
The researchers also found that the sale price of “green” buildings was more than 16% higher, and said upgrading the average non-“green” building would increase its capital value by some $5.5m (£3.85m).
The RICS claimed the results suggested that tenants and investors would pay more for an energy-efficient building, but not for buildings that were sustainable in a broader sense.
Chief economist Simon Rubinsohn said that the growing evidence of an economic benefit to energy efficiency meant “non-green buildings will eventually become an outdated model”.
He said: “This piece of research is an important first step in building an evidence base on the topic of the value of “green” buildings. Previously with only anecdotal evidence available on which to base decisions surrounding development of energy efficient buildings, it is understandable that the uptake of some measures has been frustratingly slow.
“With more comprehensive evidence-based research, such as this paper, the economic argument for having an energy efficient building will be strong. Any businesses wishing to maximise profits will have to start looking at increasing the energy efficiency of the buildings in order to remain competitive.”
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