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Cushman & Wakefield | Green is Good: Tracking the Performance of ESG Assets

As investor interest in ESG strategy rises, LEED-certified office provides a key indicator on comparative performance By 2023, 80% of investors intend to incorporate ESG into their strategy.

As demand for ESG-committed assets has grown, a key question has arisen: do these assets perform the same or better than their non-ESG peers? If so, is it possible to quantify this difference?

Key takeaways:

  • LEED-certified buildings have consistently achieved higher rents compared to their non-LEED counterparts.
  • Attaining ESG commitment through LEED certification does come at higher cost through construction or renovation.
  • LEED-certified assets outperform during recession-recovery periods.
  • The pandemic accelerated tenant demand for ESG assets.
  • LEED-certified assets held a 21.4% higher average market sales price per square foot over non-LEED buildings during the past three years.
  • Sustainable assets are still fairly niche, with LEED-certification accounting for just 2.5% of the total urban office inventory in the United States.

Click here to read more about why green is good for investors.

Authors:

  • Jacob Albers, Research Analyst
  • David Bitner, Head of Capital Markets Insights, Global Research

Compliments of Cushman & Wakefield – a member of the EACCNY.