Income, Value, and Returns in Socially Responsible Office Properties

Pivo, Gary; Fisher, Jeffrey D.

doi:10.1080/10835547.2010.12091281

Cited by 115 publications

(50 citation statements)

References 42 publications

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“…Studies that have relevance to this study have been carried out in the USA, Europe, Australia, some other developed and emerging economies. Among the studies that have investigated the difficulties encountered by investors/developers and investment advisers in the area of measuring the economic impact of green buildings are Boyd (2007), Myers et al (2007), Pivo (2007), Pivo and Fisher (2010), Rohde and Lutzkendorf (2009), Warren-Meyers and Reed (2010) and Schaefer et al . (2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Users’ preference for green features in office properties

Oyewole

Komolafe

2018

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Purpose The purpose of this paper is to examine the preference of office property users for green features in Lagos, Nigeria. This is with a view to determining the degree of users’ aspiration for green buildings in the country. Design/methodology/approach The study purposively sampled two office properties from the management portfolio of 88 registered estate firms in Lagos. Data were collected using self-administered questionnaire on two users purposively selected from each of the properties. The data were analyzed with the use of frequency distribution, percentages and measures of the users’ preference index. Findings The results revealed that the preference for green features by office property users in the study area was above average (2.5 on a five-point scale). Feature relating to “building ecology, waste and recycling” is the most preferred feature with UPI of 3.970 while those relating to “owner and occupant education” with UPI of 3.558 were least in preference. Practical implications The paper concludes that with the preference of users for green features in the study area, it may be necessary for government to strengthen the existing framework for sustainable development. Also, increased sensitization of investors, users, professionals and other stakeholders in the building industry is pertinent to the success of green building practice in the country. Originality/value This is one of the few studies on users’ preference for green features in emerging economy, particularly in the Nigerian context.

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Section: Literature Reviewmentioning

confidence: 99%

Users’ preference for green features in office properties

Oyewole

Komolafe

2018

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“…For recently constructed homes, the certification variable results in a premium of 8.7 per cent, while Energy Star homes fetch a premium of 11.2 per cent. Lastly, Pivo and Fisher (2010) use hedonic modelling to examine the effect of certification (Energy Star) in the US commercial sector. They modelled a series of financial indicators indicating the financial performance of a particular property for a given year.…”

Section: Literature Review: a Summary Of Revealed Preference Techniquesmentioning

confidence: 99%

Do green buildings capture higher market valuations and lower vacancy rates? A Canadian case study of LEED and BOMA-BEST properties

Rahman

Rowlands

Weber

2017

SASBE

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Purpose It is becoming increasingly clear that as the pressures of climate change increase around the world, all nations must strive to lower their carbon footprint through conservation. If the growth trend of green building and infrastructure construction is to be continued and improved upon, then evidence must be collected as to the benefits they bring about, and the level of support they enjoy in the market. The purpose of this paper is to shed light on the economic performance of green buildings by evaluating whether LEED for Homes and BOMA-BEST properties capture higher market valuations and lower vacancy rates. These types of research questions have not been investigated to a great deal in the Canadian context. The primary analysis concerning municipal market valuation of green buildings was conducted using robust ordinary least squares and logistic regression models. Commercial vacancy rates were compared through the use of χ2 tests. Our analysis did not lead to conclusive evidence that there exists a “green” premium in the real estate market with respect to municipal market valuations. The authors argue that this may largely be due to municipal appraisal methods that currently do not incorporate sustainability factors. As such, they may not adequately reflect market tastes and trends. Furthermore, while the vacancy rates of green commercial buildings were, on the whole, lower than their non-green counterparts, the differences were not statistically significant. Given these results, the authors propose a set of research activities that the academic community should pursue. Design/methodology/approach Statistical techniques are utilized test whether green certification (LEED/BOMA-BEST) leads to higher municipal valuation for both commercial and residential green properties, using regression analysis. Furthermore, χ2 tests are conducted to evaluate whether certification leads to lower vacancy rates for commercial properties. Findings In terms of valuation, certification does not exert (on average) a positive role in terms of higher valuations for both commercial and residential properties. However, with respect to vacancy rates, there is a tendency towards lower vacancy rates for green properties, but the relationship is not statistically significant. Research limitations/implications The next set of research needs to gather greater amount of data with respect to how municipal evaluations are performed since the results are counter-intuitive. Greater tracking of the financial performance of green buildings should be conducted and made available for both public and private bodies. Particularly, rental and sale prices of green buildings need to be tracked in an organized manner. Practical implications The valuation techniques utilized by the municipal authorities need revision as green properties are being assessed without appropriate guidance from educational institutions. Furthermore, the limited amount of “green” valuation techniques in existence may not be applied. Originality/value This is the first Canadian-based research looking into the valuation of green certification using rigorous quantitative statistical techniques and original and publicly available data. Furthermore, it holds important lessons for municipal authorities with respect to green building valuation beyond Canada as the limitations of current practice go mostly likely beyond the North American context.

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“…There is also significant evidence that the commercial and industrial markets value energy-efficient facilities, and energy efficiency is increasingly becoming viewed as "business-as-usual." Studies of voluntary energy efficiency and green certification initiatives (e.g., ENERGY STAR, LEED) find that facilities with these certifications garner higher net operating incomes, market values, and total returns when compared to conventional properties (Pivo 2010;Eichholtz et al 2010Eichholtz et al , 2013Fuerst and McAllister 2011). Increasing numbers of cities are disclosing private facility energy usage information (IMT 2017) and the CoStar Group, which provides a national database of commercial and multifamily properties, announced a commitment to increase the visibility of efficient buildings in its databases (CoStar Group 2016).…”

Section: Methods and Data Sourcesmentioning

confidence: 99%

Updated Estimates of the Remaining Market Potential of the U.S. ESCO Industry

Larsen

Bodelon

Goldman

et al. 2017

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The work described in this analysis was funded by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy (EERE) under Contract No. DE-AC02-05CH11231. We gratefully acknowledge Kurmit Rockwell, Schuyler Schell, and Leslie Nicholls (DOE-FEMP) for providing resources to conduct the analysis. Alice Dasek (DOE-OWIP) suggested the importance of presenting disaggregated market potential estimates. We also thank Dr. Timothy Unruh (DOE Office of Renewable Power) for his longtime support of our research into the U.S. ESCO industry. We thank Donald Gilligan (National Association of Energy Services Companies), Bob Slattery (Oak Ridge National Laboratory), Sharon Conger (General Services Administration), and two anonymous reviewers for providing valuable information and insight into some of the underlying assumptions behind this analysis. Andy Satchwell (LBNL) provided independent peer-review of this manuscript. Finally, we would like to gratefully acknowledge key staff at the ESCOs who donated time responding to requests for information-including providing estimates of market penetration. Any remaining omissions and errors are the responsibility of the authors. LBNL and the U.S. ESCO IndustryFor more than twenty five years, the U.S. Department of Energy has supported Lawrence Berkeley National Laboratory (LBNL) to conduct applied research and provide technical assistance on topics related to the U.S. energy services company (ESCO) industry. LBNL activities include, but are not limited to: the production of triennial reports that estimate the size of the industry; assisting in the design of savings measurement and verification protocols; managing the largest database of ESCO projects in the world; and developing the eProject Builder system (ePB). ePB enables ESCOs and their customers to simulate project cash flow scenarios, securely upload project-level information, and track progress over the life of the energy savings performance contract.

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Income, Value, and Returns in Socially Responsible Office Properties

Cited by 115 publications

References 42 publications

Users’ preference for green features in office properties

Users’ preference for green features in office properties

Do green buildings capture higher market valuations and lower vacancy rates? A Canadian case study of LEED and BOMA-BEST properties

Updated Estimates of the Remaining Market Potential of the U.S. ESCO Industry

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