Supply, Demand and the Value of Green Buildings

The research looks at the expanding supply of 'green' buildings within a given London neighbourhood that has a positive impact on rent prices in general but reduced rents and prices for environmentally-certified real estate.

The report suggests that there is a gentrification effect from 'green' buildings. Each additional 'green' building decreases premiums for a certified building in the rental and transaction markets by one percent and four percent, respectively.

Controls for lease contract features like contract length and rent-free period have a modifying impact a certified rental premiums.

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