The rising awareness of the significance of protecting the environment and reducing the carbon footprints of buildings has led to the development of sustainable or green office buildings that are believed to be more energy-efficient and environmentally friendly. Despite this, not many have studied the extent of impacts between green classification and rental depreciation in Malaysia, besides the other traditional causes. Therefore, the primary purpose of this study is to identify the relationship of building characteristics and location factors, namely, green building classifications (BCLs), location and site (LOT), building engineering and services (BES) and building appearance and design (BAD) that contribute to rental depreciation in the Golden Triangle Area of Kuala Lumpur.
A survey using a questionnaire was used in the data collection targeting the selected Kuala Lumpur commercial purpose built office building property managers. To establish the significance and relevance of the model, this study employed the PLS algorithm and bootstrapping procedures.
This research suggests that there were significant impacts of LOT, BAD, and BES towards rental depreciation. On the contrary, sustainable classifications were found insignificant towards rental depreciation.
The novelty of this study is that it proposes the sustainable classifications as one of the components in analysing the commercial property depreciation.
Wan Rodi, W., Che-Ani, A., Tawil, N., Ting, K. and Aziz, F. (2019), "The driving factors to rental depreciation of purpose built office (PBO) buildings: A PLS-SEM approach", Journal of Facilities Management, Vol. 17 No. 1, pp. 107-120. https://doi.org/10.1108/JFM-11-2017-0073Download as .RIS
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