GREEN BUILDING AND MULTIFAMILYGREEN BUILDING AND MULTIFAMILY

HACE 4300HACE 4300University of GeorgiaUniversity of GeorgiaAndy Carswell, Ph.D.Andy Carswell, Ph.D.

LET’S SAY THAT YOU ARE A LET’S SAY THAT YOU ARE A PROPERTY MANAGER WITH PROPERTY MANAGER WITH

A BRIGHT IDEA!A BRIGHT IDEA!

‘‘I REALLY THINK WE SHOULD I REALLY THINK WE SHOULD GO GREEN WITH OUR GO GREEN WITH OUR

PROPERTY’PROPERTY’

THE OWNER OF THE THE OWNER OF THE PROPERTY MIGHT BE A BIT PROPERTY MIGHT BE A BIT

HESITANTHESITANT

THIS INVESTMENT WILL THIS INVESTMENT WILL LARGELY DEPEND ON THREE LARGELY DEPEND ON THREE

SIMPLE THINGSSIMPLE THINGS

netnet

operatingoperating

incomeincome

I CAN’T HEAR YOU! LET’S I CAN’T HEAR YOU! LET’S REPEAT…REPEAT…

NETNET

OPERATINGOPERATING

INCOME!!INCOME!!

RESEARCH QUESTIONSRESEARCH QUESTIONS Which specific areas of the LEED certification Which specific areas of the LEED certification

process do multifamily properties differ from other process do multifamily properties differ from other property types?property types?

Is there an association between areas with Is there an association between areas with extreme temperatures and the extreme temperatures and the certification/registration of green properties? If so, certification/registration of green properties? If so, does this association become less significant over does this association become less significant over time as LEED certification becomes more time as LEED certification becomes more commonplace?commonplace?

Does green multifamily building occur in areas that Does green multifamily building occur in areas that are considered high-priced?are considered high-priced?

Median Gross Rent - Green Median Gross Rent - Green BuildingBuilding $ 715.41 $ 715.41

Median Gross Rent - CitywideMedian Gross Rent - Citywide $ 645.75 $ 645.75

NN 216216

t-Valuet-Value 3.4263.426

Sig.Sig. 0.0010.001

IMPLICATIONS, LIMITATIONS, IMPLICATIONS, LIMITATIONS, AND SUGGESTIONS FOR FUTUREAND SUGGESTIONS FOR FUTURE

Potential bifurcation of rental marketPotential bifurcation of rental market

Possible implications for property managersPossible implications for property managers

Image problem for “non-green” multifamily Image problem for “non-green” multifamily developersdevelopers

Conundrum for appraisers of apartment buildingsConundrum for appraisers of apartment buildings

Potential exists for surveys gauging satisfaction Potential exists for surveys gauging satisfaction and perception of green residences by occupants and perception of green residences by occupants