The value of daylight in office spaces

Abstract

The presence of natural light in indoor spaces improves human health, well-being, and productivity, particularly in workplace environments. Do the social benefits of daylight translate into economic value as measured by what office tenants are willing to pay? Using a sample of 5154 office spaces in Manhattan, we pair urban daylight simulation with a hedonic valuation model to determine the marginal value of daylight in offices. Holding all other factors constant, we find that occupied spaces with access to high amounts of daylight (as measured by 55% spatial daylight autonomy) have a 5–6% value premium over occupied spaces with low amounts of daylight (as measured by less than 55% spatial daylight autonomy). We simulate the distribution of daylight on each office floor individually, taking into account architectural and location-specific characteristics. Then, using the hedonic model, we determine the added value of daylight in the office spaces. The results show, for the first time, that an estimated 74% of office spaces throughout Manhattan have low daylight, and that in a dense urban environment with differentiation in daylight levels, tenants value high daylight. Daylight value is independent of other building, neighborhood, and contract characteristics. By revealing the added value of daylight in commercial office spaces, we suggest that daylight is a key design driver and thus, should be considered in design, policy, planning, and project financing.