Oyedokun, T. B. , Dunse, N. and Jones, C. (2018) The impact of green premium on the development of green-labelled offices in the U.K. Journal of Sustainable Real Estate, 10, pp. 81-108.
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Abstract
The perceived wisdom in many studies is that the establishment of a premium value is an essential prerequisite for the promotion of green buildings. This green premium is then a driver of the development of new green buildings, as well as an agent of the green transformation of the existing non-labeled properties. In this study, green premium is assessed as a potential driver of labeled office property development. Thirty-two commercial real estate professionals, working for organizations that are involved in the development, sale, letting or management of green offices, were interviewed across four cities in the United Kingdom: London, Manchester, Birmingham, and Edinburgh. The results reveal that after 15 years of an active development of green offices, the existence of a green rent premium remains elusive. Similarly, no evidence was found of a willingness to pay more to occupy greenlabeled offices. The results suggest that a green premium cannot be simply seen in terms of a headline rent but more widely by reference to future income streams. Consequently, we propose a ‘‘green letting premium’’ as the primary motivation for the development of green offices. Our study contributes significantly to how green premium is defined, understood, and valued globally.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Oyedokun, Dr Tunbosun |
| Authors: | Oyedokun, T. B., Dunse, N., and Jones, C. |
| College/School: | College of Social Sciences > School of Social and Political Sciences > Urban Studies |
| Journal Name: | Journal of Sustainable Real Estate |
| Publisher: | American Real Estate Society |
| ISSN: | 1949-8276 |
| ISSN (Online): | 1949-8276 |
| Copyright Holders: | Copyright © 2018 The Authors |
| First Published: | First published in Journal of Sustainable Real Estate 10: 81-108 |
| Publisher Policy: | Reproduced under a Creative Commons License |
| Related URLs: |
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