LEED-certified offices are more popular (and more expensive)

LEED-certified offices are more popular (and more expensive)

Offices with higher LEED ratings are significantly more popular than their less sustainable counterparts – but also notably more expensive, according to research from CBRE.

For its analysis, the global real estate consulting firm assessed occupation rates and rental rates for LEED certified and non-certified commercial office buildings in Abu Dhabi and Dubai. The buildings analysed have a total gross leasable area of over 3 million square metres, or in other words, represent a considerable part of the supply in the two emirates.

In Abu Dhabi, occupancy of LEED-certified assets stands at 95.9%, compared to 89.5% for non-LEED-certified developments. In Dubai, the gap between the two types of buildings is also at around 6%.

Source: CBRE Research

“Much like in many other key occupier markets around the world, occupier demand for sustainable offices in the UAE is increasing, with higher occupancy levels seen for the better performing green-accredited office assets,” said Taimur Khan, Head of Research MENA at CBRE.

“We are also seeing that certified developments are able to secure significant rental premiums compared to uncertified developments and we expect that this green premium will likely increase further going forward,” he continued.

In Abu Dhabi, the so-called average premium for LEED-certified assets is at around 33%, while