Sustainability in Commercial Real Estate Markets

Alexander Reichardt provides pertinent information on the business case for sustainable buildings, which offer a large potential to abate climate change, which can be achieved at relatively affordable costs compared to other industries. He discusses although sustainable space offers verifiable advantages to tenants like lower operating expenses, higher employee productivity and reputation benefits , the small empirical evidence that tenants indeed pay a rent premium for leasing this space. The author, therefore, analyses if sustainable buildings command a rent premium compared to comparable conventional buildings and what contributes to this rent premium. In addition, he analyses what kind of tenants primarily rent sustainable space. It is expected that the demand for sustainable space differs between industries as different industries have different motivations for renting sustainable space.

Publication in the field of economic sciences Includes supplementary material: sn.pub/extras

Autorentext

Dr. Alexander Reichardt wrote his dissertation at the Real Estate Management Institute (REMI) of the EBS European Business School.

Inhalt

Introduction.- Sustainable Building Certification and the Rent Premium: A Panel Data Approach.- Operating Expenses and The Rent Premium of Sustainable Buildings.- Sustainability and the Leasing Decision of Office Occupiers in the U.S..- Summary, Practical Implications, and Further Research.