Examining the level of influence that BREEAM certification has on tenants’ decision to occupy commercial real estate: a case study of BREEAM certified office buildings in Glasgow’s city core

Abstract

Apart from primary positive effect of the green building great energy
performance, companies opt for office buildings with green design due to
evidence based findings in regard to negative effects of office building
construction and maintenance on the environment. Visions of potential
improvements to corporate performance have led large firms to support research
of sustainability and green building as a provision of market differentiation.
Moreover, the green premium has also stimulated the interests of investors with
existing interests in the sustainability markets. Prior studies have shown higher
rents and higher occupancy rates for buildings with LEED or BREEAM
certification. Further, research is required in the contexts of economic and
environmental relationships between BREEAM certified commercial properties
and market demand.
This study assessed the importance of BREEAM certification for tenants’
decision to occupy commercial real estate in the Glasgow City Core submarket.
A methodology framework was developed to answer questions related to
BREEAM certifications for premium office buildings, energy efficiency, and
occupier benefits in the commercial built environment for the United Kingdom;
and more specifically for the office spaces within the City Core of Glasgow. An
analysis of the rental and vacancy rates for office buildings was conducted using
financial and economic data from 2008 forward.