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Capitalization of energy efficiency on corporate real estate portfolio value

Ingrid Nappi‐Choulet (ESSEC Business School, Cergy‐Pontoise, France)
Aurélien Décamps (BEM Bordeaux Management School, Talence Cedex, France)

Journal of Corporate Real Estate

ISSN: 1463-001X

Article publication date: 29 March 2013




The purpose of this paper is to investigate whether energy efficiency is capitalized in rent and asset value on corporate real estate portfolio. This approach contributes to the research on “green buildings” by using hedonic regression modeling on a portfolio of existing buildings in the French corporate real estate context.


The authors apply hedonic methods on a French corporate real estate portfolio which is composed of industrial, commercial and office buildings.


This model emphasizes two main results: energy efficiency is more capitalized in rent than in asset value and this relationship differs regarding buildings' type.


The model suggests that premium for energy efficiency is stronger for commercial and office buildings than for industrial buildings.



Nappi‐Choulet, I. and Décamps, A. (2013), "Capitalization of energy efficiency on corporate real estate portfolio value", Journal of Corporate Real Estate, Vol. 15 No. 1, pp. 35-52.



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