Assessing Office Building Marketability before and after the Implementation of Energy Benchmarking and Disclosure Policies—Lessons Learned from Major U.S. Cities

Abstract

An increasing number of U.S. cities require commercial/office properties to publicly disclose their energy performance due to the adoption of energy benchmarking and disclosure policies. This level of transparency provides an additional in-depth assessment of a building’s performance beyond a sustainability certification (e.g., Energy Star, LEED) and may lead less energy-efficient buildings to invest in energy retrofits, therefore improving their marketability. However, the research is scarce on assessing the impact of such policies on office building marketability. This study tries to fill this gap by investigating the impact of energy benchmarking policies on the performance of office buildings in four major U.S. cities (New York; Washington, D.C.; San Francisco; and Chicago). We use interrupted time series analysis (ITSA), while accounting for sustainability certification, public policy adoption, and property real estate performance. The results revealed that in some cities, energy-efficient buildings generally perform better than less energy-efficient buildings after the policy implementation, especially if they are Class A. The real estate performances of energy-efficient buildings also exhibited continuously increasing trends after the policy implementation. However, due to potentially confounding factors, further analysis is required to conclude the policy impacts on energy-efficient buildings are more positive than those on less energy-efficient buildings.