- Title
- Economic sustainability and financial benefits of sustainable built environment: a case study of office buildings in Australia
- Creator
- Varma, Vivek; Mak, Michael
- Relation
- Joint AsRES and AREUEA International Conference 2011. Proceedings of the Joint AsRES and AREUEA International Conference 2011 (Jeju, Korea 11-14 July, 2011)
- Relation
- http://www.areuea.org/conferences/details.phtml?id=88
- Publisher
- The American Real Estate and Urban Economics Association
- Resource Type
- conference paper
- Date
- 2011
- Description
- The market for sustainable built environment is gaining momentum. There has been substantial research conducted into the design, construction and benefits of sustainable buildings, particularly environmental and social benefits. However, there exists a lacking mechanism to align environmental and social sustainability aspects with economic returns. Both real estate developers and institutional investors are still concerned about the economic rationale for the development of sustainable buildings. The aim of this paper is to ascertain the economic rationale and economic sustainability in relation to the investment in sustainability and green aspects of built environment. This paper compares the returns of sustainable rated office buildings against the unrated properties in Australia. Through the analysis of sample it was ascertained that rated properties have higher capitalisation rates than the unrated counterparts. It also appears that there is emerging evidence in the market that rated properties have higher capitalisation rates and attract higher rental and capital return. In addition, Business and financial risk in investments is significantly reduced by investing in sustainability aspects of the built environment.
- Subject
- economic sustainability; sustainable development; investment in sustainable built environment; office buildings
- Identifier
- http://hdl.handle.net/1959.13/1064852
- Identifier
- uon:17709
- Language
- eng
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