Los Angeles, CA – A new study undertaken by Canada’s University of Guelph, finds that buildings that are more sustainable, using natural resources more efficiently, and environmentally responsible are able to command higher rents, have higher occupancy rates, and more satisfied tenants.
The study was based on data collected from 2004 to 2013 – which included a boom, a bust, and a recovery in the commercial real estate industry – and involved 148 office buildings in Canada and 143 office buildings in the United States, totaling more than 58 million square feet.
What the researchers were looking for, according to Stephen Ashkin, CEO of The Sustainability Dashboard Tool and the leading advocate for sustainability in the professional cleaning and building industries, were buildings that met energy and sustainability standards based on three certification programs: LEED; BOMA; and Energy Star.
“This is probably the most comprehensive study every taken to see if there is a tangible correlation between greener, more sustainable buildings and one that produces economic benefits for building owners and managers,” says Ashkin. “Previous studies have only suggested there is a correlation…this one shows there is.”
Among the highlights of the study are the following:
* When compared to traditional buildings, rents in Green and more sustainable buildings were 3.7 percent higher
* Occupancy rates were 18.7 per cent higher in Canada; 9.5 percent higher in the U.S.
* Tenant renewal rates were 5.6 percent higher in both countries
* In Canada specifically, tenant satisfaction was 7 percent higher
* In the U.S. specifically, energy consumption per square foot was 14 percent lower*
“We need more studies like this,” says Ashkin. “Studies like this make the business case for sustainability and that is something many building owners and developers are still looking for.”
Note: some statistics were not available for both counties