Value creation for tenants in environmentally certified buildings

Abstract

ABSTRACTPrevious research suggests that environmental certification (EC) affects rental rates in non-residential buildings, but there is still little understanding of how tenants differentiate such buildings from those without EC. This paper examines whether and how tenants perceive value creation in EC premises in Sweden. The findings (based on 29 questionnaire responses and 14 interviews with tenants in EC buildings) inform landlords and tenants on the development of EC strategies for improved organizational outcomes. EC creates value for tenants principally as support for their environmental management and reporting (e.g., low energy demand). EC is important for tenants internally, raising employee environmental awareness and improving employee attraction and retention. Tenants are generally positive about employee morale, indoor environmental quality (IEQ) and rental costs. However, it is not clear if such perceptions are dependent on features of modern premises in general, such as new fixtures, fittings and furnishings, and space-efficiency or from some EC-related feature. Tenants do not identify health or productivity increase in their EC premises. Findings suggest that the research focus should be shifted from investigating health and productivity increases through IEQ improvement to understanding the motivational improvement through value alignment with employees through EC.