a:32:{s:9:"weblog_id";s:1:"4";s:8:"entry_id";s:3:"127";s:6:"sticky";s:1:"n";s:14:"allow_comments";s:1:"n";s:16:"allow_trackbacks";s:1:"n";s:10:"entry_date";s:19:"2008-06-12 05:40 AM";s:15:"expiration_date";s:0:"";s:23:"comment_expiration_date";s:0:"";s:8:"category";a:1:{i:0;s:1:"4";}s:9:"author_id";s:1:"2";s:10:"new_weblog";s:1:"4";s:6:"status";s:4:"open";s:14:"trackback_urls";s:0:"";s:18:"versioning_enabled";s:1:"y";s:5:"title";s:48:"Research Says Energy Star Pays: LEED Not So Much";s:9:"url_title";s:47:"research_says_energy_star_pays_leed_not_so_much";s:6:"submit";s:6:"Update";s:11:"field_id_26";s:48:"Research Says Energy Star Pays: LEED Not so Much";s:11:"field_ft_26";s:4:"none";s:11:"field_id_31";s:1:"9";s:11:"field_id_44";s:145:"New research has found that an Energy Star rating from the U.S.
Environmental Protection Agency increases the asset value of an office
building. ";s:11:"field_ft_44";s:4:"none";s:11:"field_id_28";s:34:"green, LEED, Energy Star, research";s:11:"field_ft_28";s:4:"none";s:11:"field_id_38";s:0:"";s:15:"field_offset_38";s:1:"y";s:11:"field_id_39";s:0:"";s:15:"field_offset_39";s:1:"y";s:11:"field_id_40";s:0:"";s:11:"field_ft_40";s:4:"none";s:11:"field_id_29";s:3756:"<p>In &ldquo;Doing Well by Doing Good? Green Office Buildings,&rdquo; Professor JohnQuigley at the University of California, Berkeley &ndash; Haas School of Business<br />and coauthors Piet Eichholtz and Nils Kok of Maastricht University, Netherlands, determined that investments in proven green building practices</p>
<p>lead to sizable increases in a property&rsquo;s market value and effective rent, or the average per square foot rent paid. Energy Star certified buildings produced an 8.5 percent increase in effective rent. The additional annual rent for going green amounts to almost $309,000, based on the average size building. Likewise, the incremental value of a green structure is an estimated $5.1 million more than an ordinary building. The study did not<br />calculate the incremental cost of investing in green building practices.<br /><br />Quigley said, &ldquo;Finding there is a linkage between energy and profitability of rental properties is potentially significant and leads to more extensive<br />uses of this information.&rdquo; This research offers quantitative evidence for builders and investors who value the social responsibility factors of green<br />buildings but have lacked data about the financial performance of these investments. <br /><br />This research focused solely on commercial property. Quigley, Eichholtz, and Kok first identified 694 buildings in a number of major U.S. cities<br />including San Francisco, Boston, Chicago, Atlanta, Dallas, Washington D.C. and Los Angeles. All are green certified by the federal government&rsquo;s Energy<br />Star program or the private LEED (&ldquo;Leadership in Energy and EnvironmentalDesign&rdquo;) standard. <br /><br />While the three researchers documented higher asset values for Energy Star rated buildings, they did not find a similar increase associated with<br />LEED Certification. &ldquo;It is claimed that LEED-certified buildings have lower operating costs and increased asset values,&rdquo; the authors claimed, but<br />not a single LEED-certified building included in the study produced higher effective rent as a result of its green integrity. Only the Energy Star<br />buildings produced higher rents, Quigley said. The control group consisted of nearly 7,500 other office buildings within a quarter mile of the<br />certified buildings. In many cases, the green buildings were taller, newer and larger than the control group of buildings but those characteristics<br />were adjusted in statistical models.<br /><br />Quigley claims his study is the first systematic analysis of environmentally-sustainable construction and its economic impact on the real<br />estate market. He said he undertook the research to see if the touted economic advantages of green building were \"hype or real.&rdquo; While Quigley&rsquo;s<br />work concludes that the resulting profitability is real, he is continuing to research why green commercial buildings produce higher rents and market<br />value by using engineering data from the Environmental Protection Agency (EPA).<br /><br />Quigley and his coauthors also suggested that companies with well-defined and aggressive corporate social responsibility policies may be able to<br />outperform competitors in other ways: enhancing the corporate image, improving profitability and productivity, and reducing exposure to<br />regulation and unwelcome activism.<br /><br />Prof. Quigley is the I. Donald Terner Distinguished Professor in Affordable Housing and Urban Policy, Haas Real Estate Group at the University of<br />California, Berkeley. He is also the Chancellor&rsquo;s Professor of Economics at the Department of Economics and a Professor of Public Policy at the Goldman<br />School of Public Policy. <br /></p>";s:10:"category_0";s:1:"4";}