LEED-certified multifamily properties are consistently nabbing higher rents than their non-certified counterparts, particularly in the wake of the COVID-19 pandemic.
A Cushman & Wakefield analysis of two decades of CoStar data on Class A multifamily assets with 50 units or more note that between the first quarter of 2000 and fourth quarter of 2021, LEED rent premiums averaged 3.1%. Average rents for LEED assets peaked at 4.5% in Q4 2011 before moderating and then temporarily dropping to negative 2.1% at the beginning of the pandemic.
But "the LEED premium quickly rebounded to typical levels (3.0%) by Q4 2021, suggesting resilience in pricing as we continue through the recovery period," the Cushman report notes.
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