Correlation Between Green Certification and Office Building Rental Trends

Abstract

Green building has achieved a significant achievement in context of sales and rental premium compared to conventional buildings. The inclusion of sustainable features has encouraged the attention for academia to discovers in-depth regarding this matter. In real estate practice, the green attributes were undervalued or misunderstood by the valuers prior to certain limitations. Henceforth, this study aims to investigates the effect of green certifications towards rentals. Kuala Lumpur was selected as focal study area and 722 office rental transactions data from 2018 to 2024 has been analysed. The machine learning algorithms were chosen as the main approach to provide insights on the influence of green certifications towards rental. From the use of three (3) different kinds of algorithms, the results were analysed based on the weight of attributes. Despite common perceptions among valuers regarding the effect of certification, the analysis had revealed on the importance of the green certifications towards rentals. By integrating the use of statistical method and machine learning approach, this study provides insights on the importance of green certification towards rental of property.