Is Green (still) a Matter of Prime? Stylized Facts about the Location of Commercial Green Buildings

Braun, Thomas; Bienert, Sven

doi:10.1080/10835547.2015.12091871

Cited by 8 publications

(1 citation statement)

References 27 publications

(15 reference statements)

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“…This hypothesis stresses even more the motivation of the study at hand. Similar conclusions are also drawn by Braun and Bienert (2015), who examine commercial properties in 103 US metropolitan areas. According to their survey, green buildings are often located in prime locations close to city centers, urging again the need to adequately control for landmark properties.…”

Section: Literature Reviewsupporting

confidence: 78%

Green pay off in commercial real estate in Germany: assessing the role of Super Trophy status

Ott

Hahn²

2018

JPIF

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Purpose Based on a hedonic regression approach, the purpose of this paper is to relativize existing green pay off evidence by incorporating Super Trophy as a so far underrepresented determinant. The authors analyze a private panel database of 160 European office properties and confirm a significant green pay off; the positive impact of excellent environmental certification results on market values and net rents is significantly reduced when considering Super Trophy characteristics. Design/methodology/approach Based on a panel database of 160 European office properties, the survey applies a hedonic regression approach including an extensive set of control factors as, for example, location criteria, general property characteristics, climate adjustments, consumption data, refurbishment activities, green leases, sustainable certification and energy performance certificate figures. Findings Even though our database still confirms a significant green pay off, the positive impact of excellent environmental certification results on market values and net rents is significantly reduced when controlling for Super Trophy characteristics. Practical implications Especially, the question how sustainability can be integrated into real estate appraisal is of major interest. The paper at hand may help in two aspects: on the one hand, it provides further insight with regard to the quantitative impact of Super Trophy Buildings on rents and market values. On the other hand, a higher transparency in appraisals may result in structural specifications that help to consolidate appraisals and empirical evidence on a “green pay off.” Originality/value The study investigates a niche segment – landmark properties. The empirical analysis explicitly controls for potential Super Trophy status. It draws attention to the importance of a reasonable and complete set of control variables to increase statistical validity of future studies in that field.

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Section: Literature Reviewsupporting

confidence: 78%