THE IMPACT OF LEED-ENERGY STAR CERTIFIED OFFICE BUILDINGS ON THE MARKET VALUE OF ADJOINING BUILDINGS IN NEW YORK CITY

Abstract

Green building certification is a useful way to support objective evaluations of the sustainability of a building. Both the Leadership in Energy and Environmental Design (LEED) and Energy Star certifications are designed to reduce the negative environmental impacts of buildings and provide positive economic benefits to certified buildings. Given that a demonstrable positive economic impact is also required to satisfy one element of the triple bottom line of sustainability for these certifications, this study examined the economic impact of LEED and/or Energy Star certified office buildings on the market values of adjoining buildings in Manhattan, New York City (NYC), using a spatial analysis based on a Geographic Information System (GIS) and a statistical analysis utilizing R-Project. The study's findings reveal a positive impact for LEED and/or Energy Star certified office buildings on their adjoining buildings, pointing to the need for future research to investigate the spillover effect of LEED and/or Energy Star certified office buildings on other buildings in their neighborhood from a socio-economic standpoint.