Tenants Willingness to Pay for Green Features in Office Properties

Abstract

The study investigates tenants’ willingness to pay for green features in office properties in Lagos, Nigeria. This is with a view to determining the inclinations of users to green buildings. Data for the study were collected through the use of structured questionnaire administered using purposive sampling. Tenants’ Willingness To Pay Index (TWTPI) was used to measure the tenants’ willingness to pay for green building features. The features considered were ‘Water, Rain Water and Sewage’, Site Selection, Site Design and Land Scape Ecology’, ‘Building Ecology, ‘Waste and Recycling’, ‘Indoor Air Climate’, Material use and Conservation’, and Owner and Occupant Education’. The willingness of tenants to pay for features such as ‘Energy Conservation’, ‘Water, Rain Water and Sewage’ and ‘Site Selection, Site Design and Land Scape Ecology’ ranked first, second and third with TWTPI of 3.12, 2.72 and 2.71respectively. This finding shows that the majority of the features had a TWTPI of less than 3(out of 6) indicating that the level of willingness of tenants to pay for the majority of green features was below average. The paper advocates for relevant agencies to embark on aggressive awareness campaign which emphasizes the direct benefits of green building.