@article{ART002450858},
author={Jeong, Sung-Hoon and Jin, Chang Ha},
title={A Study on the Effect of Green-Building Certification on Office Rent and Vacancy},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2019},
volume={29},
number={1},
pages={25-37},
doi={10.35136/krer.29.1.2}
TY - JOUR
AU - Jeong, Sung-Hoon
AU - Jin, Chang Ha
TI - A Study on the Effect of Green-Building Certification on Office Rent and Vacancy
JO - Korea Real Estate Review
PY - 2019
VL - 29
IS - 1
PB - korea real estate research institute
SP - 25
EP - 37
SN - 2092-5395
AB - The purpose of this study is to examine how the green-building certification system (G-SEED, Green Standard for Energy and Environmental Design) affects the rent level and vacancy rate, which are the main determinants of the investment return of office assets. Using the office market information for December 2017, the 2-SLS (stage least square) model is adopted as a methodology for overcoming the endogenous issue on the office rent and vacancy determinant model. The results show that the green-building certification system has a significant impact on the vacancy rate but is insignificant to the rent level. The magnitude of the estimate of the vacancy rate based on the green-building certification system is approximately -0.08, with a significant p-value. It can be assumed that the green-building certification system does not affect the rent level but clearly affects the occupancy level. This indicates that the said system provides operational efficiency to individual firms in the office market but is not reflected on the rent level. It is confirmed that the green-building certification system does affect the office market through the vacancy level, which implies that firms prefer to locate at a green building over the long term, in accordance with social responsibility, as a marketing strategy. Thus, it is important to provide a set of incentives to attract potential tenants and developers so as to offset the additional cost at the initial construction stage of a building’s life cycle.
KW - green-building certification;rent;vacancy rate;2SLS method
DO - 10.35136/krer.29.1.2
ER -
Jeong, Sung-Hoon and Jin, Chang Ha. (2019). A Study on the Effect of Green-Building Certification on Office Rent and Vacancy. Korea Real Estate Review, 29(1), 25-37.
Jeong, Sung-Hoon and Jin, Chang Ha. 2019, "A Study on the Effect of Green-Building Certification on Office Rent and Vacancy", Korea Real Estate Review, vol.29, no.1 pp.25-37. Available from: doi:10.35136/krer.29.1.2
Jeong, Sung-Hoon, Jin, Chang Ha "A Study on the Effect of Green-Building Certification on Office Rent and Vacancy" Korea Real Estate Review 29.1 pp.25-37 (2019) : 25.
Jeong, Sung-Hoon, Jin, Chang Ha. A Study on the Effect of Green-Building Certification on Office Rent and Vacancy. 2019; 29(1), 25-37. Available from: doi:10.35136/krer.29.1.2
Jeong, Sung-Hoon and Jin, Chang Ha. "A Study on the Effect of Green-Building Certification on Office Rent and Vacancy" Korea Real Estate Review 29, no.1 (2019) : 25-37.doi: 10.35136/krer.29.1.2
Jeong, Sung-Hoon; Jin, Chang Ha. A Study on the Effect of Green-Building Certification on Office Rent and Vacancy. Korea Real Estate Review, 29(1), 25-37. doi: 10.35136/krer.29.1.2
Jeong, Sung-Hoon; Jin, Chang Ha. A Study on the Effect of Green-Building Certification on Office Rent and Vacancy. Korea Real Estate Review. 2019; 29(1) 25-37. doi: 10.35136/krer.29.1.2
Jeong, Sung-Hoon, Jin, Chang Ha. A Study on the Effect of Green-Building Certification on Office Rent and Vacancy. 2019; 29(1), 25-37. Available from: doi:10.35136/krer.29.1.2
Jeong, Sung-Hoon and Jin, Chang Ha. "A Study on the Effect of Green-Building Certification on Office Rent and Vacancy" Korea Real Estate Review 29, no.1 (2019) : 25-37.doi: 10.35136/krer.29.1.2
