||Why Companies Rent Green: CSR and The Role of Real Estate
||Kok, Nils, Eichholtz, Piet; Quigley, John M.
||We conduct a quantitative study to explain why firms lease commercial office space in buildings with a green label – as this implies paying a rental premium. Based on a literature review, we construct a theoretical framework of drivers underlying corporate social responsibility. We formulate five propositions that explain why specific industries may be more willing to lease green. Then, we test these propositions using a sample of 11,000 unique tenants in approximately 5,000 office buildings, of which 1,100 buildings have a green label. We find that corporations in the oil and banking industry, as well as government-related organization, are among the most prominent green tenants. The empirical analysis shows that tenants in these industry groups are significantly more likely to rent green office space.
|Year of publication:
Kok, Nils, Eichholtz, Piet; Quigley, John M. (2009).
Why Companies Rent Green: CSR and The Role of Real Estate. 16th Annual European Real Estate Society Conference in Stockholm, Sweden,