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Volume 38, Number 3, 2016

Demand for Green Buildings: Office Tenants' Stated Willingness-to-Pay for Green Features
 

Spenser Robinson, D.B.A
Central Michigan University
Email: robin6s@cmich.edu

Robert Simons, Ph.D.
Cleveland State University
Email: r.simons@csuohio.edu

Eunkyu Lee
Cleveland State University
Email: e.lee16@csuohio.edu

Andrew Kern
Central Michigan University
Email: kern1a@cmich.edu

Abstract:

This study analyzes the demand for green office building features among US office tenants. An on-line survey of a random sample of office tenants in 17 major US markets is employed, with 708 responses representing a 23% response rate. Tenants provided their perspective on green buildings and their stated willingness to pay for individual green features. Office tenants have the highest willingness to pay for improved indoor air quality and access to natural light. The results show that public firms, along with those in the Energy and Information Technology industries are most likely to pay for green-labeled buildings. Regional and demographic preferences are shown in both willingness to pay and attribute ranking. The findings provide implications for policy-makers and real estate property developers in terms of which green building features are considered to be most important for green building practices, and how demand for green features potentially differ across regions.

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