An exploration of ecolabels and operating financial metrics: A first look at the multifamily rental sector. Issue 5 (12th December 2019)

• Record Type: Journal Article
• Authors: Hopkins, Erin A.; Van Mullekom, Jennifer H.
• Is Part Of: International journal of housing markets and analysis. Volume 13:Issue 5(2020)
• Page Start: 869
• Page End: 886
• Publication Date: 2019-12-12
• Subjects: Green building -- Sustainability -- Multifamily rental sector -- Apartments -- Economic impacts -- Property operations; Residential real estate -- Periodicals; 333.3382205
• DOI: 10.1108/IJHMA-08-2019-0088
• Languages: English
• ISSNs: 1753-8270

Abstract

Abstract : 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.