The Political Economy of Green Industrial Warehouses

Journal of Sustainable Real Estate, 2011

37 Pages Posted: 28 Aug 2012

See all articles by David M. Harrison

David M. Harrison

UCF; Texas Tech University

Michael Seiler

College of William and Mary - Finance

Date Written: August 26, 2012


Empirical research into the effects of environmental certification on commercial real estate properties routinely finds evidence of both significant rental rate and occupancy rate premiums accruing to owners of LEED and/or Energy Star certified properties. Interestingly, however, the underlying determinants and drivers of such premia remain largely unexplored. Building upon this literature, the current investigation expands our understanding of environmental certification and valuation effects by examining a previously unexplored property type – industrial warehouse facilities. Using a sample of 20,172 industrial properties, we find “green” certification plays an important, but contingent, role within this property type sector. Specifically, “green” warehouses in politically conservative areas rent at a significant discount relative to their non-certified counterparts, while similar properties in politically liberal areas rent at a significant premium. These results provide further evidence on the importance of political ideology to real estate decision-making, and offer the first insight into the importance of environmental certification within the industrial warehouse property type sector.

Keywords: Industrial warehouse, green building, political economy

Suggested Citation

Harrison, David M. and Seiler, Michael, The Political Economy of Green Industrial Warehouses (August 26, 2012). Journal of Sustainable Real Estate, 2011. Available at SSRN:

David M. Harrison

UCF ( email )

Orlando, FL 32816-1400
United States
407-823-1127 (Phone)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Michael Seiler (Contact Author)

College of William and Mary - Finance ( email )

United States


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