Do green buildings capture higher market valuations and lower vacancy rates? A Canadian case study of LEED and BOMA-BEST properties

Purpose It is becoming increasingly clear that as the pressures of climate change increase around the world, all nations must strive to lower their carbon footprint through conservation. If the growth trend of green building and infrastructure construction is to be continued and improved upon, then evidence must be collected as to the benefits they bring about, and the level of support they enjoy in the market. This article aims to shed light on the economic performance of green buildings by evaluating whether LEED for Homes and BOMA-BEST properties capture higher market-valuations and lower vacancy-rates. These types of research questions have not been investigated to a great deal in the Canadian context. The primary analysis concerning municipal market-valuation of green buildings was conducted using robust ordinary least-squares and logistic regression models. Commercial vacancy rates were compared through the use of chi-square tests. Our analysis did not lead to conclusive evidence that there exists a...