An exploration of ecolabels and operating financial metrics

Purpose As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green certifications on multifamily rental communities. Design/methodology/approach Using a multiple regression methodology,...

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Bibliographic Details
Published inInternational journal of housing markets and analysis Vol. 13; no. 5; pp. 869 - 886
Main Authors Hopkins, Erin A, Van Mullekom, Jennifer H
Format Journal Article
LanguageEnglish
Published Emerald Publishing Limited 18.10.2020
Subjects
Apartments
Multifamily rental sector
Economic impacts
Property operations
Green building
Sustainability
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Summary:Purpose As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green certifications on multifamily rental communities. Design/methodology/approach Using a multiple regression methodology, operating financial variables are examined. Findings Multifamily rental green buildings garner not only higher rental collections but also higher total expenses. When applying these higher rates to properties, the overall increase in rents outweighs the increases in total expenses. Originality/value While multiple studies have focused on the office sector, this study begins to fill the literature gap within the multifamily rental sector regarding the economic impacts of green-certified buildings. The outcomes of this study have positive implications for the multifamily real estate industry by providing developers, owners, managers and related parties with a better understanding of the financial impacts of multifamily rental green buildings; however, more research is needed.
ISSN:1753-8270
1753-8289
DOI:10.1108/IJHMA-08-2019-0088