Study of NY and London real estate finds strong evidence for ‘green premium’
UBS research finds clear evidence of a green premium in the two largest office-building markets, New York and London, driven by tenant requirement and legislation, the firm said in a recent report.
The report examines 1,453 office building transactions in New York and London between 2010 and 2022, running a regression to analyze the economic implications of environmentally certified commercial real estate while controlling for a wide range of factors.
On a price-per-square-foot basis, New York and London see material green premiums of 28 percent and 19 percent, respectively (all else being equal, such as location, age, renovation, occupancy, and lease length). This relationship aligns with the findings of a recent report by MSCI – based on Lon