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The purpose of this paper is to exam the financial impact on the owner/lessor who is considering a partial energy upgrade to an existing medical office building. The owner who leases the building using a triple net lease does the upgrade prior to leasing the building, with the expectation of earning higher rents. How much should the owner who leases the property spend for a given rent per square foot increase?

The empirical study highlights the impact of key financial variables on the dependent variable medical office construction spending put in place in the USA. The independent variables prime interest rate, cost of natural gas per therm and electricity cost per KWH, resale building prices are significant variables when predicting medical office construction spending. A case study using a cost-benefit model is developed. It inputs corporate income tax rates, incorporates a debt service coverage ratio, prime interest rate, analyzes investment tax credit (ITC) and rebate scenarios and varies the level of rental income and energy savings. The case study results provide insight into which factors are enabling higher net construction spending when considering a green energy retrofit project. Both the regression model and the case study model focussed on the owner of a building who rents medical office space to tenants using a triple net lease. The owner/lessor paradigm analyzes revenue enhancements, the tax implications of having these savings and benefits associated with borrowing when financing the green retrofit. The availability of low cost borrowing, increases in the ITC percent and rebates and increases in rent per square foot have an impact on potential energy upgrade spending.

The empirical model finds the independent variables to be significant. Utility cost, resale value of office buildings, the prime interest rate, business bankruptcy court filings and unemployment rate fluctuations adequately explain movements in medical office building spending for the years 2000 through 2015 yielding a R2 of 73.8 percent. The feasibility case study indicates that the energy saving levels and ITCs not income tax rates are the primary drivers for a partial energy retrofit.

Market incentives are a function of the cost of energy. If the cost of energy drops, then the profit incentive to conserve energy becomes less important. The role of tax credits, rebates, property tax reductions and government directives, then become primary incentives for installing energy upgrades. The owner of an empty building assumes all of the operating costs normally paid by a tenant under a triple net lease. This possibility was not included in the replacement cost-benefit model used in this paper.

The feasibility of doing an energy upgrade to an existing building requires that a cost-benefit analysis be undertaken. The independent variables that are significant when doing a regression model or proxies for these variables are incorporated into a present value model. The results in Table V can be used as an initial template for determining how much to spend per square foot when doing an energy upgrade. The square foot amounts can be applied to different size office buildings. The corporate income tax rate or a personal income tax rate has minimal impact on energy construction upgrade spending.

More energy efficient office buildings reduce the amount of greenhouse gases released into the atmosphere. Energy efficient buildings also conserve on scarce fuel reserves. ITCs and rebates limit the role of government in directing decisions to do energy upgrades. The market mechanism to some degree can help encourage energy conservation through asset upgrades.

The paper incorporates an empirical model which is a form of technical analysis to examine independent variables that explain medical office building spending with a case study structured on expected revenues and costs which takes a fundamental approach to understanding the relationship between the dependent variable and its independent variables. The regression model combines factors that impact the demand for energy efficient medical buildings from an owner/lessor perspective which includes resale values of existing buildings, business bankruptcy filings and unemployment rates. Supply independent variables include the prime interest rate and electricity per KWH and natural gas per therm. The regression model found these variables to be significant. The case study uses the same independent variables or close proxy variables to determine the maximum financially feasible per square foot spending that can be invested in energy upgrades.

The purpose of this paper is to address the apparent slow acceptance on the part of developers located in the USA to seek green certifications. If green-certified construction costs more than non-green construction, then is there a financial reason for not seeking a green rating. Do green buildings perform better than non-green buildings financially? The paper develops and presents a discounted present value model for doing a cost-benefit analysis for building green. This model enables an investor to determine the feasibility of constructing a new green-certified building instead of a conventional non-green building. Non-green buildings are not certified by a rating agency such as Leadership in Energy and Environmental Design (LEED), Energy Star or Building Research Establishment Environmental Assessment Method (BREEAM). Real estate permits are granted by local municipalities in the USA. This means that local government mandates requiring green construction that significantly adds to the initial cost of a project could have the unintended result of encouraging new non-green construction just outside their municipal boundaries.

The paper collects publically available research data for office buildings located in the USA, and inputs this information into an income statement. It tests the hypothesis: is green-certified construction a financially feasible choice for an investor? An incremental approach using a 15-year holding period is presented. This time period takes into account equipment wear and tear. Heating/cooling systems and other green-technologically based operating systems have a limited life and do not last for 30 or 40 years. They are likely to need replacement after 15 years have lapsed.

The negative net present value (NPV) results and high payback periods indicate that increased rents for green construction, a tax credit for the present value loss and/or property-tax reduction covering the shortfall is needed as an incentive to commercially build green. The implication of a negative NPV is that green office buildings will be built by government agencies where green is mandated, corporations that want a green image and benefit from this image, where local ordinances mandate green construction features and where local and federal tax incentives are available increasing a construction project's feasibility.

The limitation of any cost-benefit study is that analytical models and/or data used to forecast energy and water consumption savings in green-certified buildings compared to conventional buildings can be inaccurate. Forecasting models can understate or overstate the actual savings realized from green construction especially in the long-term given the difficulty of predicting equipment wear and tear, net rents and energy costs. The modeled percentage cost associated with green new construction features could remain constant or grow through time. Tables I and II results assume energy and water expenses remain a constant percentage over the 15-year period. The agency costs associated with obtaining a LEED or BREEAM certification was not calculated as an upfront cost. Certification by LEED or BREEAM increases the upfront cost associated with building a green building.

The length of the payback period estimates coupled with negative NPV for green certified compared to non-green construction suggests that developers do not have an incentive to build green. Higher WACC rates would result in green-certified projects being less feasible to build.

The LEED certification point system may need to be reviewed. Points are assigned for features that improve occupant satisfaction, but may have little impact on reducing energy usage.

A model is presented for determining whether green-certified construction is financially feasible. The model enables the investor to determine the size of a tax incentive that is needed to enable new green construction to be economically feasible to build. The higher the negative NPV the larger the income or property tax incentive or other financial incentives needed. Prior research studies compared green and non-green buildings, but did not compare the energy savings generated to the additional construction and upfront costs incurred using a discount rate. They assumed the energy savings justified the additional initial cost associated with building a new green certified.

The purpose of this paper is to explore perceptions of the advantages and disadvantages of green roofs for commercial real estate building owners/occupiers in a UK city and consider how these might affect the chances of their adoption.

Two sets of semi-structured interviews were conducted with purposively selected respondents, 10 with and 25 without green roofs, to compare and contrast differing perspectives. A grounded theory approach was taken to data analysis, allowing themes to emerge directly from the data.

Low awareness and understanding were observed amongst those without green roofs, which positively affected perceived costs whilst negatively affecting perceived benefits. Green roof owners gave weight to wider societal and ecosystem services benefits, whilst those without focussed much more upon building-level benefits and costs.

Because of the restricted sample size, the findings in themselves are not generalizable; rather, themes are drawn from the research for reflection.

Findings point to steps that might be required of regional and national government to increase green roof uptake. This could involve initiating conversations to raise awareness, shift discourse and perceived norms and best practice; offering incentives, education and training; and presenting high-profile exemplar projects of green roofing to begin to mainstream the technology and get it onto the radar of building owners.

Bringing together social research around cohorts with and without green roofs, the paper throws into sharp relief discussions around costs and benefits and points towards potentially more productive directions for action to encourage consideration and take-up of green roofs by building owners.

This case study aims to appraise the financial benefits of green building construction in developing countries. The case study presents, green building's positive net present value (NPV) investment in real terms and potentially enhanced stock market returns at the firm level compared to competitors.

The case study examines secondary data on a green building certification and longitudinal operation costs to estimate green building investments' financial benefits. The case study also compares the stock market performance of green building portfolio company with non-green building competitors of similar size and industry.

The case study finds out that the real return rate on green building investment is higher than the weighted average cost of capital (WACC) of the company with an inflation-adjusted payback period of fewer than ten years. Findings compare favourably to the extant literature which was mostly in developed economies. The paper further highlights that stock market performance for a green building focused company shows improved returns to shareholders relative to non-green competitors.

The results are specific to the time and building researched; green buildings costs have reduced over time, and a new study may show improved case study findings. The case study results on stock market performance are indicative and may need further research for evaluation.

The case study presents a model for critical appraisal of green buildings investment. The paper further indicates that green building investment may lead to operational savings and superior stock performance compared to competitors.

The paper presents a green building investment appraisal model which might be useful for the industry and academia. Developing countries have limited literature on green buildings' financial benefits; this case study quantifies the financial benefits and compares them with the available literature related to developed economies’ green buildings.

Green building (GB) has been actively promoted in many countries, but it has not become the mainstream in Chinese construction industry due to various reasons. This paper aims to investigate the major driving factors for the development of GB with reference of the Chinese construction market. Twenty-one factors influencing the development of GB were identified through a literature review, questionnaire survey, and face-to-face interview with professionals in the construction industry. Structural equation model was established to identify the critical driving path and three critical factors hierarchies. The result of model analysis also verifies the theoretical hypotheses that government body is the biggest motivation for the development of GB, and the path coefficient is high. The results demonstrate the necessity for the formulation of incentive policies and power of GB propaganda. We identify distinct government and market effects and then induce a government-led GB development path. These findings provide a valuable reference for government body aiming at promoting GB in the construction industry to put forward relevant policies and incentives and for the market body to understand the major driving factors and path when making decisions.

Numerous researchers proved Vertical Greenery System VGS beneficial to buildings and surroundings. However, it is still not widely applied in the tropics like Malaysia. This paper aims to determine the perceptions of VGS among the end users before it can be improved. A survey was conducted among 40 respondents, the end users of VGS in selected buildings within Klang Valley area. The collected data was analysed using statistical tests. From the findings, the primary benefits of VGS perceived by end users are enhancing visual quality, bringing nature harmony, reducing stress and reducing the urban heat island effects. The perceptions contradict with the results of ANOVA test between reducing the urban heat island effects and other VGS benefits that proves the need and effort to work on VGS in Malaysia.

The purpose of this paper is to ascertain whether energy retrofits need to be directed by public policy intervention or can be encouraged through tax relief that harnesses profit incentives. Existing office space potentially has an economic life of 25 to 40 years. It may be operating inefficiently compared to newer buildings for many years. Designing a market-based incentive system that encourages periodic remodeling which lowers energy usage and carbon emissions would have social benefits.

An owner/user case study is developed to test financial feasibility. The empirical study uses publicly available information to examine whether the variables modeled react as anticipated. The regression model incorporates variables of importance to an owner/user. Tax credits and energy deductions, interest rates associated with borrowing and likely electricity and natural gas rate changes are independent variables used to predict the dependent variable new non-residential private construction spending.

Investment tax credits (ITCs) coupled with lending has a positive impact on new non-residential commercial construction spending. The value of these benefits is not sufficient to encourage total building energy retrofits, but would encourage low-cost system upgrades. The interest rates associated with borrowing and the debt-service coverage ratio need to be kept low for existing building energy retrofits to be stimulated.

The case study provides a template that a business can use to determine the financial feasibility of a proposed energy upgrade. It enables the comparison of the marginal cost associated with an update to the present value of the financial benefits likely to be generated. Local real estate tax reductions linked to specific energy upgrades offered by many municipalities can be added to the expected energy savings generated by doing the retrofit.

Tax systems designed to solve environmental pollution problems do not require regulators, inspections or court case decisions and are inherently less intrusive to businesses. Coupling private financial incentives with public policy goals cause energy-saving technologies to be adopted more quickly and with less public outcry.

The paper specifically considers the factors that influence an owner/user of the property. Rental rates and vacancy losses do not influence a property owner/user. Prior studies looked at revenue enhancements and lower-vacancy rates possibly associated with a green compared to a non-green office building. These studies did not focus on the owner/user paradigm. They reported financial benefits accruing to property owners who lease the office building. Many retrofit studies tended to use CoStar Group’s data, which are collected by a for-profit company and sold to users. The data used in this study come from survey data collected by the Federal Government of the United States of America (USA). It is publicly available to all researchers.

This study aims to examine the relationship between sustainability initiatives and student satisfaction in accommodation services at the University of Northampton.

Four main sustainability factors, including energy consumption, waste management, environmental responsibility and green infrastructure, are explored in relation to their impact on student satisfaction. A quantitative research approach was used, using a structured questionnaire distributed to 224 students. Correlation and regression analyses were conducted to assess the associations and predictive power of the sustainability factors on student satisfaction.

The findings underscore the pivotal role of sustainable initiatives in shaping student satisfaction with accommodation services. Particularly, energy consumption, environmental responsibility and green infrastructure emerged as significant factors influencing higher levels of student satisfaction. These outcomes align with the core principles of sustainability and emphasize the importance of implementing effective strategies in these domains to enhance student experiences. Existing literature supports these findings, indicating that sustainable practices significantly contribute to enhanced satisfaction levels. It is crucial to acknowledge that this study focused on a specific context, namely, the University of Northampton, and caution should be exercised when generalizing these findings to other settings.

This study contributes to the existing literature by providing empirical evidence of the specific sustainability factors that influence student satisfaction in university accommodation. Findings offer valuable guidance for universities and accommodation providers in developing and implementing sustainable practices to create a conducive living environment for students.

Building upon insights from institutional theory and resource-based view (RBV), the aim of this study is to investigate the direct effects of stakeholder pressures on organizational resources, organizational capabilities and green export business strategy and to explore the indirect impacts of organizational resources and capabilities on the link between stakeholder pressure and green business strategy from an emerging economy.

A quantitative study was conducted to test the conceptual model within this study. In total, 235 questionnaires were collected from Turkish exporting manufacturing companies and the data was analyzed through structural equation modeling.

The results of the study demonstrated that stakeholder pressures have strong and positive effects on organizational resources and organizational capabilities for firms from emerging markets. Also, organizational resources, capabilities and stakeholder pressures have significant impacts on green export business strategy, which in turn, influences positively export market and financial performance.

Several implications were presented in this study via examining the forces affecting companies' environmental strategies and how implementing these strategies result in favorable gains in their international operations for emerging country exporters.

The contribution of this study lies in the under-researched context, in discussing the mutually and contradictory roles played by stakeholders and in examining determinants of the adoption of green strategies by emerging-market exporters. In this sense, stakeholders make the life of the company tougher at home by demanding a greener posture; on the other hand, by doing so, they prompt the company to be competitive when selling to developed markets.

This study aims to explore the concept of green building by determining a suitable system for categorising green building features (GBFs) that are considered significant in enhancing the value of a building in a developing economy with particular reference to South Africa. The motivation for categorising the features is based on the perception that the upsurge in adopting green building and sustainability has ushered in a new and formidable set of challenges to practising professionals in terms of recognising the most significant value-adding GBFs.

A quantitative approach was adopted, involving randomly selected construction professionals within the Western Cape Province of South Africa. The data were analysed using descriptive and inferential statistical analysis tools.

Based on the mean ranking analysis, the top three most important features, amongst others, were kitchen and water-closet (WC) water efficient fittings, megawatt photovoltaic solar plant and water metering for monitoring and leak detection. Additionally, an exploratory factor analysis revealed that the underlying grouped features were “recycled materials and high-performance building energy design”, “water-saving and solar technologies”, “biometric system and acoustical feature”, “sensor control and natural daylight design”, “daylight harnessing feature”, “high-performance hydrologic strategy and noise control feature” and “special utility feature and water efficiency technologies”.

This study was conducted and limited only to the Western Cape Province of South Africa. However, the findings have practical significance to the generality of green building projects and may serve as a useful guide for other developing countries.

This study broadens the viewpoint of construction professionals to recognise and prioritise the most important GBFs in South Africa that increase the value of a building. To create a system for assessing the sustainability of a building, the seven components and the features associated with them may be useful.