The Spillover Effect of Proximity to LEED-Energy Star Certified Office Buildings On Neighborhood Market Value

The construction industry's two main certifications are Leadership in Energy and Environmental Design (LEED) and Energy Star. To achieve the triple bottom line of sustainability for these certifications, both certifications should make a positive impact individually as well as mutually, with their impact extending to the surrounding neighborhood. This research examined the spillover effect of LEED and/or Energy Star certified office buildings on the property values of other buildings in their neighborhood in Manhattan, New York City from an economic standpoint. The spatial analysis approach using the Geographic Information System and the statistical analysis approach based on the Hedonic Price Model and the Linear Mixed Effect Model were applied to identify the geographical distribution of LEED and/or Energy Star certified office buildings and their other buildings in their neighborhoods and analyze the impact of the former on the latter. The results were as follows: 1) There was a significant correlation between a LEED and/or Energy Star certified office building and the unit market values of its adjoining buildings through the unit market values of the certified office building, the LEED and/or Energy Star certification achievement, and the major features of LEED certification; 2) There was a varying spillover effect of the certified office building on the median unit market value of buildings depending on their proximities to a LEED and/or Energy Star certified office building. This research provides a firm foundation for further efforts to quantify the spillover effect of LEED and/or Energy Star certification on a neighborhood from an economic standpoint, thus supporting and encouraging growth in the local real estate market and benefitting not only the owners, developers, and investors of the certified office building but also the owners of neighboring buildings.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Environmental Design and Planning

Department dc:contributor.department

Environmental Design and Planning

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

2015

Author dc:creator

• Suh, Min Jae

Chair dc:contributor.committeechair

• Pearce, Annie R.

Committee members dc:contributor.committeemember

• Zhang, Yang
• Auchey, Flynn L.
• Mitchell, Kimberly Jean

• LEED
• Energy Star
• triple bottom line of sustainability
• mutual growth
• spillover effect
• market value
• walking distance
• neighborhood
• GIS
• hedonic price model
• linear mixed effect model

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Dc Identifier Other

vt_gsexam:4801

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/73339