An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates

McAllister, Patrick M.; Fuerst, Franz

doi:10.2139/ssrn.1431575

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An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates

23 Pages Posted: 11 Jul 2009

See all articles by Patrick M. McAllister

Patrick M. McAllister

University of Reading - Department of Real Estate and Planning

Franz Fuerst

University of Cambridge - Department of Land Economy; University of Melbourne; City University of New York - Center for Urban Research

Date Written: July 8, 2009

Abstract

This paper investigates the effect of eco-labeling on the occupancy rates of commercial offices in the US. The occupancy rates of LEED and Energy Star labeled offices are compared to a sample of non-labeled offices. Using OLS and quantile regression analyses, a significant positive relationship is found between occupancy rate and the eco-label. Controlling for differences in age, height, building class and quality, the results suggest that occupancy rates are approximately 8% higher in LEED labeled offices and 3% higher in Energy Star labeled offices. However, for Energy Star labeled offices effects are concentrated in certain market segments.

Keywords: Eco-certification, real estate economics, dynamics of office occupancy rates

JEL Classification: Q4, C31, R33

Suggested Citation: Suggested Citation

McAllister, Patrick M. and Fuerst, Franz, An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates (July 8, 2009). Available at SSRN: https://ssrn.com/abstract=1431575 or http://dx.doi.org/10.2139/ssrn.1431575