An exploration of ecolabels and operating financial metrics A first look at the multifamily rental sector

Purpose As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green certifications on multifamily rental communities. Design/methodology/approach Using a multiple regression methodology, operating financial variables are examined. Findings Multifamily rental green buildings garner not only higher rental collections but also higher total expenses. When applying these higher rates to properties, the overall increase in rents outweighs the increases in total expenses. Originality/value While multiple studies have focused on the office sector, this study begins to fill the literature gap within the multifamily rental sector regarding the economic impacts of green-certified buildings. The outcomes of this study have positive implications for the multifamily real estate industry by providing developers, owners, managers and related parties with a better understanding of the financial impacts of multifamily rental green buildings; however, more research is needed.