The Socio-Economic Impacts of ‘Green’ Building in Israel: Green Building as an Urban Branding Tool

‘Green’ building may involve additional construction costs, such as those required for better wall insulation or upgraded window glazing. However, the ‘green’ premium, or the increase in a property’s selling price, may not only include these extra costs but also the extra profit to the developer from ‘green’ construction (Massimo 2012). Fuerst and McAllister (2011) found that rental prices of regular commercial buildings are lower by 4.1% on average compared to those complying with LEED and Star Energy standards.