An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates
23 Pages Posted: 11 Jul 2009
Date Written: July 8, 2009
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