Sustainability and the Leasing Decision of Office Occupiers in the U.S.

Abstract

The rapid growth of voluntary certification systems such as Energy Star and LEED in the U.S. reflects the increased environmental awareness in the commercial real estate industry. The emergence of sustainable real estate from a niche market to become a mainstream phenomenon was supported by the growing focus on Corporate Social Responsibility (CSR). Within their CSR strategies companies increasingly focus on sustainable buildings, which is not surprising given that commercial office buildings in the U.S. account for approximately 20 percent of total energy use, 35 percent of electricity consumption and are responsible for approximately 18 percent of greenhouse gas emissions (U.S. Environmental Protection Agency, 2009a). Hence, the building sector offers a large potential to abate climate change (Stern, 2008).