The benefits of decarbonization go beyond energy savings. Rental premiums and lower vacancy rates can act as “green premiums” for buildings that invest in eliminating their emissions. But without a consistent way of calculating the value of those green premiums, the real estate sector will struggle to include this effect in their business cases.
In Unlocking Value in Commercial Real Estate: The Economic Benefits of a Decarbonized Building, the Building Decarbonization Alliance examines the evidence of these emerging green premiums, including rental premiums and lower vacancy rates in buildings that invest in decarbonization. Based on quantitative analysis and insights from stakeholder discussions held both before and after the analysis, it explores what governments and industry can do to support the trend, through building codes, building and equipment standards, incentives, and other policies.