Impact of Environmental Sustainability on the Market Value of Office Buildings

Abstract

The issue of environmental sustainability of buildings is relatively new in many areas and has not yet been sufficiently explored. One of the little-explored areas is the relationship between environmental sustainability and the properties’ market value. In practice, LEED or BREEAM sustainability certificates are often used to determine the degree of environmental sustainability. These certificates are well known to international investors and tenants in domestic markets. Sustainability has evolved into a competitive factor due to its positive economic, ecological and social impact. Certified buildings are preferred by major corporate tenants with an international field of activity who often have ethical rules for sustainable development. This increases the attractiveness of the building, which has a positive effect on its market value.