The Economics of Green Retrofits

Abstract

This is the first study focused on the economics of green renovations. Our findings are focused on Leadership in Energy and Environmental Design (LEED) buildings certified under the Existing Building: Operations and Maintenance (EBOM) certification scheme during the 2005–2010 period. We compare rents and occupancy rates, and investigate the types of improvements undertaken, as well as the amount of investments required. We survey building owners on the typical improvements and their attitudes towards the benefits and costs of upgrades. The findings indicate that investments in ‘‘green’’ retrofits are incorporated by the market, which is consistent with past studies that mostly focused on new construction. The findings indicate that, on average, investments in the sustainability of commercial buildings are economically viable.