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Capitalization of energy efficiency on corporate real estate portfolio value

Capitalization of energy efficiency on corporate real estate portfolio value Purpose – The purpose of this paper is to investigate whether energy efficiency is capitalized in rent and asset value on corporate real estate portfolio. This approach contributes to the research on “green buildings” by using hedonic regression modeling on a portfolio of existing buildings in the French corporate real estate context. Design/methodology/approach – The authors apply hedonic methods on a French corporate real estate portfolio which is composed of industrial, commercial and office buildings. Findings – This model emphasizes two main results: energy efficiency is more capitalized in rent than in asset value and this relationship differs regarding buildings' type. Originality/value – The model suggests that premium for energy efficiency is stronger for commercial and office buildings than for industrial buildings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Corporate Real Estate Emerald Publishing

Capitalization of energy efficiency on corporate real estate portfolio value

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1463-001X
DOI
10.1108/JCRE-01-2013-0005
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate whether energy efficiency is capitalized in rent and asset value on corporate real estate portfolio. This approach contributes to the research on “green buildings” by using hedonic regression modeling on a portfolio of existing buildings in the French corporate real estate context. Design/methodology/approach – The authors apply hedonic methods on a French corporate real estate portfolio which is composed of industrial, commercial and office buildings. Findings – This model emphasizes two main results: energy efficiency is more capitalized in rent than in asset value and this relationship differs regarding buildings' type. Originality/value – The model suggests that premium for energy efficiency is stronger for commercial and office buildings than for industrial buildings.

Journal

Journal of Corporate Real EstateEmerald Publishing

Published: Mar 29, 2013

Keywords: Corporate real estate; Rental value; Industrial property; Commercial property; Green buildings; Energy efficiency; France

References