The Impact of LEED-Energy Star Certified Office Buildings on the Market Values of Neighboring Areas in New York City

Abstract

Green building certifications are being adopted widely, and existing research continues to show an array of benefits to stakeholders of green certified buildings. However, little attention has been paid thus far to the effects these buildings may have on their surrounding neighborhoods economically. This research examined the effect of LEED and/or Energy Star certification on the neighborhoods surrounding certified office buildings from an economic standpoint with spatial and statistical analyses. This research showed the unit market value of LEED and/or Energy Star certified office buildings and the parameters of LEED and/or Energy Star certification had statistically a positive impact on the median unit market value of their neighborhood areas. The findings can provide useful insights into the possibilities for additional economic benefits of their neighborhoods, encouraging a win-win approach that enhances the local real estate market.