A study of the New York City and London office markets has found strong evidence for a “green premium”.

UBS Asset Management, Real Estate & Private Markets has examined 1,453 office building transactions in New York City and London between 2010 and 2022 and found material green premiums of 28 percent and 19 percent, respectively, on a price per square foot basis. The manager says its analysis is based on many factors being equal among the office sample it has examined, including location, occupancy and lease length. The manager has also found that green premium is consistently positive in 90 percent of the transactions in New York City and London, implying that even at the lower end, certified buildings trade above noncertified ones.

In a study called Green Premium, UBS Asset Management says its findings correspond with those made by MSCI in 2022 on London office deals, which found a 25 percent or higher gap in sales prices for those with a sustainabil