1# RECORD 433778217c0b45ad4ea3ea67a7a55879a36712242# TITLE: Indoor and outdoor health factors in the pricing of commercial real estate: A hedonic analysis of U.S. office buildings.3# YEAR: 2025.0 VENUE: Journal of Environmental Management DOI: 10.1016/j.jenvman.2025.1253124# AUTHORS: Katharina Minkow; F. Fuerst5# PAGES: 46 CANDIDATE TABLE PAGES (1-based): [12, 16, 17, 28, 30, 43, 44, 45, 46]6# ABSTRACT: Research on the connection between occupant health and the financial performance of commercial buildings is scarce. This study tests the willingness to pay for health-promoting features and estimates the relative contribution of indoor and outdoor features. For this purpose, a hedonic framework is applied to assess the effect of different attributes on prices. Based on a proprietary, assembled dataset of physical and financial characteristics, a sample of health-certified U.S. office buildings is compared to a large sample of non-certified buildings in the same markets. Potential biases are mitigated by statistical methods such as panel data estimation and propensity score matching. Health-certified offices are found to achieve a rental premium of 4-6 % on average, across model specifications. In addition, proximity to health services and an encouraging environment for active transport modes of commuting tend to increase office rents while outdoor air quality and hospital quality ratings yield mixed results. Comparing the individual price effects of indoor and outdoor health-related features shows that higher active commuting scores or walkability have the strongest positive association with office rents. Overall, both indoor and outdoor health-related features are found to drive rental rates, but it appears that neighborhood characteristics exert a larger cumulative impact on rent than building health certification. Our findings suggest that health aspects of the built environment, although not widely monitored or tracked by owners or tenants, are nonetheless valued and reflected in pricing within the analyzed office markets.789===== PAGE 1 (score 6, numeric-paren 0, table-words 0, var-words 6) =====10111 12 13Indoor and outdoor health factors in the pricing of 14commercial real estate: A hedonic analysis of U.S. 15office buildings 16 17 18 19 20Abstract 21Research on the connection between occupant health and the financial performance of 22commercial buildings is scarce. This study tests the willingness to pay for health-promoting 23features and estimates the relative contribution of indoor and outdoor features. For this 24purpose, a hedonic framework is applied to assess the effect of different attributes on prices. 25Based on a proprietary, assembled dataset of physical and financial characteristics, a sample 26of health-certified U.S. office buildings is compared to a large sample of non-certified buildings 27in the same markets. Potential biases are mitigated by statistical methods such as panel data 28estimation and propensity score matching. Health-certified offices are found to achieve a rental 29premium of 4-6% on average, across model specifications. In addition, proximity to health 30services and an encouraging environment for active transport modes of commuting tend to 31increase office rents while outdoor air quality and hospital quality ratings yield mixed results. 32Comparing the individual price effects of indoor and outdoor health-related features shows 33that higher active commuting scores or walkability have the strongest positive association with 34office rents. Overall, both indoor and outdoor health-related features are found to drive rental 35rates, but it appears that neighborhood characteristics exert a larger cumulative impact on rent 36than building health certification. Our findings suggest that health aspects of the built 37environment, although not widely monitored or tracked by owners or tenants, are nonetheless 38valued and reflected in pricing within the analyzed office markets. 39 40Keywords: healthy buildings, green buildings, voluntary certification schemes, office rents, air 41pollution, accessibility to health services, walkability 424344===== PAGE 12 (score 15, numeric-paren 0, table-words 2, var-words 5) =====454612 47 48Table 2: Summary Statistics of the Overall Sample in Q2 2022 49 50 51Control buildings (N=4,435) 52Health-certified buildings (N=425) 53 54 55 56 57 58 59Mean 60Std. Dev. 61Mean 62Std. Dev. 63Diff. in Means 64Std. Error 65ANOVA p-value 66 67HBS 68 690.00 700.00 710.43 720.50 730.43 740.02 75- 76 77HBC 78 790.00 800.00 810.69 820.46 830.69 840.02 85- 86 87Rent 88 8941.82 9020.08 9150.37 9223.53 938.55 941.18 950.00 96 97Overall AQI (lagged) 98 9941.15 1004.45 10140.98 1024.63 103-0.17 1040.23 1050.45 106 107Distance to nearest hospital 108 1091.28 1101.05 1110.99 1120.61 113-0.29 1140.03 1150.00 116 117ACS 118 11981.24 12020.22 12188.30 12213.64 1237.06 1240.73 1250.00 126 127Walk Score 128 12987.32 13020.20 13193.72 13213.35 1336.40 1340.72 1350.00 136 137Size 138 139232,275 140328,187 141660,762 142579,563 143428,487 14428,542 1450.00 146 147Number of floors 148 14911.85 15011.46 15125.52 15217.69 15313.67 1540.87 1550.00 156 157GB 158 1590.26 1600.44 1610.58 1620.49 1630.32 1640.02 165- 166 167 168 169N 170Pct. 171N 172Pct. 173 174 175 176 177Hospital rating 178Three 1791,037 18023.4 181125 18229.4 183 184 185 186 187 188One/Two 189918 19020.7 19196 19222.6 193 194 195 196 197 198Four/Five 1991,587 20035.8 201172 20240.5 203 204 205 206 207 208Not Available 209893 21020.1 21132 2127.5 213 214 215 216 217Age 218yrs<=5 219114 2202.6 22126 2226.1 223 224 225 226 227 228Not Available 229137 2303.1 23127 2326.4 233 234 235 236 237 2385<yrs<=10 239190 2404.3 24116 2423.8 243 244 245 246 247 24810<yrs<=15 24971 2501.6 2516 2521.4 253 254 255 256 257 25815<yrs<=20 259277 2606.2 26139 2629.2 263 264 265 266 267 26820<yrs<=25 269519 27011.7 27144 27210.4 273 274 275 276 277 27825<yrs<=30 279283 2806.4 28126 2826.1 283 284 285 286 287 28830<yrs<=35 289210 2904.7 29140 2929.4 293 294 295 296 297 29835<yrs<=40 299113 3002.5 30120 3024.7 303 304 305 306 307 30840<yrs<=45 30939 3100.9 3110 3120.0 313 314 315 316 317 31845<yrs<=50 319109 3202.5 32132 3227.5 323 324 325 326 327 328yrs>50 3292,373 33053.5 331149 33235.1 333 334 335 336 337Renovation 338No Renovation 339360 3408.1 34146 34210.8 343 344 345 346 347 348yrs<=5 349317 3507.1 35126 3526.1 353 354 355 356 357 3585<yrs<=10 359369 3608.3 36163 36214.8 363 364 365 366 367 36810<yrs<=15 3692,146 37048.4 371171 37240.2 373 374 375 376 377 37815<yrs<=20 379188 3804.2 38134 3828.0 383 384 385 386 387 388yrs>20 3891,055 39023.8 39185 39220.0 393 394 395 396 397Building class 398C 399427 4009.6 4015 4021.2 403 404 405 406 407 408A 4091,811 41040.8 411353 41283.1 413 414 415 416 417 418B 4192,197 42049.5 42167 42215.8 423 424 425 426 427Note: 12% of the health-certified buildings hold both a standard and a Covid certification. 428 429 430431432===== PAGE 13 (score 12, numeric-paren 0, table-words 1, var-words 5) =====43343413 435 436Table 3: Summary Statistics of the Health-certified Building Sample by Certification Type in Q2 2022 437 438 439WELL Standard (N=42) 440WELL Covid (N=227) 441Fitwel Standard (N=147) 442Fitwel Covid (N=69) 443 444 445Mean 446Std. Dev. 447Mean 448Std. Dev. 449Mean 450Std. Dev. 451Mean 452Std. Dev. 453Rent 454 45552.53 45630.93 45749.64 45823.01 45955.26 46023.64 46151.74 46223.32 463Overall AQI (lagged) 46441.62 4654.81 46641.10 4674.18 46840.27 4695.10 47040.90 4714.78 472Distance to nearest hospital 4730.91 4740.40 4751.07 4760.70 4770.88 4780.50 4790.95 4800.56 481ACS 482 48389.14 48413.03 48587.83 48614.23 48789.90 48811.52 48988.59 49012.70 491Walk Score 492 49394.19 49414.25 49593.23 49614.11 49794.99 49810.77 49994.70 50011.84 501Size 502 503658,998 504513,383 505725,638 506637,405 507703,822 508662,024 509559,333 510464,262 511Number of floors 51227.40 51319.13 51427.05 51518.31 51626.59 51718.40 51822.84 51915.43 520GB 521 5220.50 5230.51 5240.58 5250.49 5260.61 5270.49 5280.61 5290.49 530 531 532N 533Pct. 534N 535Pct. 536N 537Pct. 538N 539Pct. 540Hospital rating 541Three 54215 54335.7 54463 54527.8 54651 54734.7 54817 54924.6 550 551One/Two 5526 55314.3 55443 55518.9 55637 55725.2 55823 55933.3 560 561Four/Five 56216 56338.1 564103 56545.4 56652 56735.4 56824 56934.8 570 571Not Available 5725 57311.9 57418 5757.9 5767 5774.8 5785 5797.2 580Age 581yrs<=5 5823 5837.1 58411 5854.8 58611 5877.5 5883 5894.3 590 591Not Available 5923 5937.1 59413 5955.7 5969 5976.1 5984 5995.8 600 6015<yrs<=10 6020 6030.0 6045 6052.2 6067 6074.8 6086 6098.7 610 61110<yrs<=15 6120 6130.0 6140 6150.0 6165 6173.4 6181 6191.4 620 62115<yrs<=20 6222 6234.8 62421 6259.3 62613 6278.8 6285 6297.2 630 63120<yrs<=25 6324 6339.5 63423 63510.1 63615 63710.2 6389 63913.0 640 64125<yrs<=30 6423 6437.1 64415 6456.6 6467 6474.8 6486 6498.7 650 65130<yrs<=35 6523 6537.1 65427 65511.9 65612 6578.2 6584 6595.8 660 66135<yrs<=40 6623 6637.1 66410 6654.4 6667 6674.8 6685 6697.2 670 67140<yrs<=45 6720 6730.0 6740 6750.0 6760 6770.0 6780 6790.0 680 68145<yrs<=50 6829 68321.4 68414 6856.2 6867 6874.8 6886 6898.7 690 691yrs>50 69212 69328.6 69488 69538.8 69654 69736.7 69820 69929.0 700Renovation 701No Renovation 7022 7034.8 70428 70512.3 70614 7079.5 7086 7098.7 710 711yrs<=5 7122 7134.8 71415 7156.6 7166 7174.1 7187 71910.1 720 7215<yrs<=10 7229 72321.4 72444 72519.4 72614 7279.5 7287 72910.1 730 73110<yrs<=15 73220 73347.6 73478 73534.4 73666 73744.9 73830 73943.5 740 74115<yrs<=20 7425 74311.9 74413 7455.7 74615 74710.2 7487 74910.1 750 751yrs>20 7524 7539.5 75449 75521.6 75632 75721.8 75812 75917.4 760Building class 761C 7620 7630.0 7643 7651.3 7662 7671.4 7680 7690.0 770 771A 77235 77383.3 774184 77581.1 776128 77787.1 77859 77985.5 780 781B 7827 78316.7 78440 78517.6 78617 78711.6 78810 78914.5 790Note: WELL Covid refers to the WELL Health-Safety Rating. Fitwel Covid refers to the Fitwel Viral Response Module. The sum of health-certified buildings split by certification type is greater than the number of 791buildings holding any health-related certification, because some buildings hold more than one certification. 792 793794795===== PAGE 16 (score 22, numeric-paren 0, table-words 4, var-words 4) =====79679716 798 799of non-health-certified buildings, it may be the case that we measure other effects than the 800treatment effect. Using the PSM approach, the heterogeneity between treatment and control 801group can be reduced for these observable characteristics. According to Rosenbaum & Rubin 802(1983) the propensity score equals the conditional probability that a subject receives treatment 803given a bundle of observable characteristics. Following Rosenbaum & Rubin (1983), propensity 804scores based on general building characteristics e(BC) in this study were estimated via the 805following logistic regression, in which the probability of receiving any type of health-related 806certification over the entire observed timeframe (HBX=1) is conditional on a vector of observed 807building characteristics (BC): 808 809 810𝑒(𝐵𝐶) = 𝑃𝑟(𝐻𝐵𝑋= 1|𝐵𝐶) 811 812 813The building characteristics included are size, number of floors, building class, age, and 814renovation. Based on the estimated propensity scores, we used the nearest neighbor approach 815with a ratio of 1:2 so that for each healthy building observed at time t two non-health-certified 816building observations were selected into the control group. 817 818Table 4 shows the standardized mean differences of the selected building characteristics before 819and after PSM. A graphical representation of the PSM results is depicted in Appendix B. The 820propensity score is shown as distance for treatment and control group. As observed for the 821cross-section before, the large standardized mean differences for the full sample demonstrate 822that the groups of health-certified and non-health-certified buildings differ significantly from 823each other, especially in terms of building class, number of floors, and size. The PSM procedure 824reduces the standardized mean differences below 0.1 for most covariates and below 0.2 for the 825number of floors and size, which suggests that the treatment and control group are well-826balanced after PSM (e.g. Cohen, 1977). That some variables show greater balancing 827improvements post-matching than others can be explained by greater differences in the variable 828distributions between treatment and control group pre-matching. For example, as presented in 829Table 2, the means and standard deviations of size are substantially different for the group of 830health-certified buildings and the control group, which can challenge balancing. 831 832Table 4: PSM Summary Balance 833 834 835All data 836Matched data 837 838 839Means 840HB 841Means 842Control 843Std. 844Mean 845Diff. 846Means 847HB 848Means 849Control 850Std. 851Mean 852Diff. 853Distance 854 8550.21 8560.07 8570.83 8580.21 8590.19 8600.12 861Size 862 863677,971 864234,164 8650.76 866677,971 867576,804 8680.17 869Number of floors 870 87126.29 87212.24 8730.80 87426.29 87524.44 8760.11 877Building class 878C 8790.01 8800.10 881-0.77 8820.01 8830.01 8840.03 885 886A 8870.83 8880.40 8891.13 8900.83 8910.85 892-0.05 893 894B 8950.16 8960.50 897-0.93 8980.16 8990.14 9000.04 901Age 902yrs<=5 9030.04 9040.03 9050.07 9060.04 9070.05 908-0.02 909 910Not Available 9110.06 9120.03 9130.12 9140.06 9150.06 9160.01 917 9185<yrs<=10 9190.05 9200.03 9210.06 9220.05 9230.05 9240.00 925 92610<yrs<=15 9270.08 9280.07 9290.06 9300.08 9310.09 932-0.02 933 93415<yrs<=20 9350.10 9360.10 9370.00 9380.10 9390.10 940-0.02 941 94220<yrs<=25 9430.09 9440.08 9450.04 9460.09 9470.09 9480.00 949 95025<yrs<=30 9510.09 9520.05 9530.15 9540.09 9550.09 9560.02 957 95830<yrs<=35 9590.08 9600.04 9610.12 9620.08 9630.08 9640.00 965 96635<yrs<=40 9670.05 9680.03 9690.13 9700.05 9710.06 972-0.01 973 97440<yrs<=45 9750.00 9760.01 977-0.13 9780.00 9790.00 9800.04 981 98245<yrs<=50 9830.07 9840.03 9850.16 9860.07 9870.07 9880.00 989 990yrs>50 9910.28 9920.51 993-0.50 9940.28 9950.27 9960.03 997998999===== PAGE 17 (score 24, numeric-paren 0, table-words 2, var-words 7) =====1000100117 1002 1003 1004 1005All data 1006Matched data 1007 1008 1009Means 1010HB 1011Means 1012Control 1013Std. 1014Mean 1015Diff. 1016Means 1017HB 1018Means 1019Control 1020Std. 1021Mean 1022Diff. 1023Renovation 1024No Renovation 10250.09 10260.09 10270.03 10280.09 10290.11 1030-0.04 1031 1032yrs<=5 10330.07 10340.07 1035-0.01 10360.07 10370.07 10380.01 1039 10405<yrs<=10 10410.11 10420.08 10430.09 10440.11 10450.13 1046-0.04 1047 104810<yrs<=15 10490.45 10500.51 1051-0.12 10520.45 10530.43 10540.03 1055 105615<yrs<=20 10570.15 10580.09 10590.18 10600.15 10610.15 10620.00 1063 1064yrs>20 10650.12 10660.16 1067-0.12 10680.12 10690.11 10700.02 1071Sample sizes 1072 1073Control 1074HB 1075 1076 1077 1078 1079All 1080 1081181,966 108217,143 1083 1084 1085 1086 1087Matched 1088 108934,286 109017,143 1091 1092 1093 1094 1095Unmatched 1096 1097147,680 10980 1099 1100 1101 1102 1103Note: The distance shows the propensity score for the treatment group of health-certified buildings and the control group of non-health-1104certified buildings. 1105 1106Table 5 presents the summary statistics for our main variables of interest for the PSM sample 1107in Q2 2022, including properties without any healthy building certification, with any healthy 1108building certification, with any standard certification, and with any Covid certification. As 1109observed for the full sample, the health-certified buildings show a greater mean annual effective 1110rent than the buildings without any healthy building label in the PSM sample. The descriptive 1111statistics indicate that even after balancing the groups based on general building characteristics, 1112health-certified buildings are situated at locations with on average closer access to health 1113services and a better walkability. However, the summary statistics do not suggest a difference 1114in the mean outdoor air quality between health-certified offices and non-health-certified offices. 1115One-way ANOVA tests are performed for the cross-section of the PSM sample to investigate 1116whether there is a significant difference in the mean values of each of the outdoor health-related 1117variables for the groups of buildings with any HB standard certification versus buildings 1118without any HB standard certification and for buildings with any HB Covid certification versus 1119buildings without any HB Covid certification. 1120 1121Table 5: Summary Statistics of the PSM Sample by Certification Type in Q2 2022 1122 1123 1124Without any HB 1125certificate (N=852) 1126HB (N=425) 1127HB Standard 1128(N=184) 1129HB Covid 1130(N=294) 1131 1132 1133Mean 1134Std. 1135Dev. 1136Mean 1137Std. 1138Dev. 1139Mean 1140Std. 1141Dev. 1142Mean 1143Std. 1144Dev. 1145Rent 1146 114743.87 114821.63 114950.37 115023.53 115154.54 115225.31 115350.07 115422.98 1155Overall AQI (lagged) 115641.52 11573.71 115840.98 11594.63 116040.57 11615.12 116241.04 11634.32 1164O3 AQI (lagged) 116541.28 11663.91 116740.74 11684.91 116940.30 11705.50 117140.80 11724.57 1173SO2 AQI (lagged) 11741.03 11751.05 11761.05 11771.06 11781.09 11791.09 11801.06 11811.06 1182CO AQI (lagged) 11835.21 11842.06 11854.47 11861.66 11874.29 11881.58 11894.58 11901.68 1191NO2 AQI (lagged) 119220.97 11935.28 119419.81 11956.04 119619.13 11976.36 119820.16 11996.00 1200PM2.5 AQI (lagged) 120133.12 12025.33 120332.64 12045.04 120532.66 12064.81 120732.60 12085.00 1209PM10 AQI (lagged) 121017.92 12115.79 121218.01 12135.74 121418.00 12155.86 121618.06 12175.75 1218Distance to nearest hospital 12191.23 12200.98 12210.99 12220.61 12230.89 12240.48 12251.04 12260.67 1227ACS 1228 122983.05 123018.64 123188.30 123213.64 123389.61 123411.98 123588.03 123613.90 1237Walk Score 123889.51 123918.69 124093.72 124113.35 124294.70 124311.73 124493.55 124513.65 1246Bike Score 124775.71 124817.92 124980.15 125013.81 125180.96 125213.15 125380.21 125413.58 1255 1256 1257N 1258Pct. 1259N 1260Pct. 1261N 1262Pct. 1263N 1264Pct. 1265Hospital rating 1266Three 1267196 126823.0 1269125 127029.4 127164 127234.8 127380 127427.2 1275 1276One/Two 1277157 127818.4 127996 128022.6 128143 128223.4 128366 128422.4 1285 1286Four/Five 1287373 128843.8 1289172 129040.5 129166 129235.9 1293125 129442.5 1295 1296Not 1297Available 1298126 129914.8 130032 13017.5 130211 13036.0 130423 13057.8 130613071308===== PAGE 18 (score 9, numeric-paren 0, table-words 2, var-words 5) =====1309131018 1311 1312 1313 1314Without any HB 1315certificate (N=852) 1316HB (N=425) 1317HB Standard 1318(N=184) 1319HB Covid 1320(N=294) 1321 1322 1323Mean 1324Std. 1325Dev. 1326Mean 1327Std. 1328Dev. 1329Mean 1330Std. 1331Dev. 1332Mean 1333Std. 1334Dev. 1335Note: HB Covid refers to the WELL Health-Safety Rating and the Fitwel Viral Response Module. The sum of health-certified buildings 1336split by certification type is greater than the number of buildings holding any health-related certification, because some buildings hold 1337more than one certification. 1338 1339One drawback of the PSM approach is that it only accounts for observable characteristics. 1340Therefore, we use panel data models in order to additionally address some of the unobservable 1341heterogeneity. One option are fixed effects (FE) models. Including fixed effects allows to 1342control for two types of unobservable attributes (Stock & Watson, 2019). Firstly, individual 1343fixed effects allow to account for unobserved characteristics which are building-specific but 1344time-consistent (Stock & Watson, 2019). Secondly, time fixed effects allow to control for 1345unobservable attributes which are equal for all buildings but differ over time (Stock & Watson, 13462019). One of the main drawbacks of fixed effects models is that time-invariant characteristics 1347are neutralized by the use of fixed effects. This is particularly problematic in hedonic models 1348as many time-constant or near-constant characteristics (e.g. location-related variables and stable 1349occupancy rates) are important price determinants and we are particularly interested in 1350observing and interpreting these coefficients. Healthy building certifications are not just issued 1351for existing properties, but often for new developments so that for these buildings no change in 1352the certification indicator variables can be observed over time. Another option are random 1353effects (RE) models, which address the mentioned problems with fixed effects models. Random 1354effects models can be estimated under the assumption that the unobserved effect is random and 1355therefore not correlated with any of the regressor variables (Wooldridge, 2016). 1356 1357Model 1 is a random effects model and is used to investigate whether health-promoting offices 1358achieve a rental premium compared to non-health-promoting offices, holding other 1359characteristics constant. 1360 1361 1362ln 𝑅𝑖𝑡= 𝛽0 + 𝛽1𝐻𝐵𝑖𝑡+ ∑𝛽2,𝑙𝐵𝐶𝑙,𝑖𝑡1363𝐿1364𝑙=11365+ 𝛽3𝐺𝐵𝑖𝑡+ ∑𝛽4,𝑚𝑆𝑚,𝑖1366𝑀1367𝑚=11368+ ∑𝛽5,𝑛𝑀𝐼𝑛,𝑖𝑡+ 𝛼𝑖+ 𝛿𝑡+ 𝜀𝑖𝑡1369𝑁1370𝑛=11371 1372(1) 1373 1374The dependent variable is the natural logarithm of the annual effective rent per sqf in USD. The 1375variable of interest is the indicator variable healthy building (HB), which takes value 1, if the 1376building is WELL and/or Fitwel certified or pre-certified in quarter t. This takes into account 1377all different versions of certifications, including Covid-related certifications. Further, this 1378model includes several time-variant and time-consistent control variables covering general 1379building characteristics (BC), such as the age based on the year of construction and the 1380economic age based on the year of renovation, green building certifications (GB), submarkets 1381(S), and macroeconomic indicators (MI). In this model specification the control for green 1382buildings consists of a single indicator variable taking a value of 1, if the building holds a LEED 1383and/or Energy Star certification in quarter t and 0, otherwise. As suggested by the Breusch-1384Pagan Lagrange Multiplier test (Breusch & Pagan, 1980) and an F test, time dummies (δt) are 1385included in addition to individual effects (αi). A full description of variables is shown in Table 13861. 1387 1388The Hausman test indicates that the fixed effects model is more appropriate than the random 1389effects model (Hausman, 1978). However, random effects is still preferable for this study as 139013911392===== PAGE 28 (score 92, numeric-paren 54, table-words 6, var-words 14) =====1393139428 1395 1396Table 6: Regression Results - Selected Variables 1397Dependent variable: ln (Rent) 1398(1) 1399RE PSM 1400sample, 1401 1402 1403 1404all HB 1405(2a) 1406RE full 1407sample, 1408 1409 1410HBS/HBC 1411& OHBC 1412(2b) 1413RE PSM 1414sample, 1415 1416 1417HBS/HBC 1418& OHBC 1419(3) 1420RE PSM 1421sample, 1422 1423HBS by 1424provider 1425& OHBC 1426(4a) 1427RE full 1428sample, 1429HBS by 1430provider 1431& OHBC 1432detailed 1433(4b) 1434RE PSM 1435sample, 1436HBS by 1437provider 1438& OHBC 1439detailed 1440HB 14410.037*** 1442 1443 1444 1445 1446 1447HBS 1448 14490.041** 14500.056*** 1451 1452 1453 1454HBC 1455 1456-0.002 14570.012 1458 1459 1460 1461WELL Standard 1462 1463 1464 14650.053+ 14660.045 14670.049 1468Fitwel Standard 1469 1470 1471 14720.048*** 14730.046** 14740.048** 1475Overall AQI (lagged) 1476 14770.001*** 14780.001*** 14790.001*** 1480 1481 1482O3 AQI (lagged) 1483 1484 1485 1486 14870.002*** 14880.001*** 1489SO2 AQI (lagged) 1490 1491 1492 1493 14940.009*** 14950.010*** 1496CO AQI (lagged) 1497 1498 1499 1500 15010.012*** 15020.012*** 1503NO2 AQI (lagged) 1504 1505 1506 1507 1508-0.005*** 1509-0.004*** 1510PM2.5 AQI (lagged) 1511 1512 1513 1514 15150.002*** 15160.001*** 1517PM10 AQI (lagged) 1518 1519 1520 1521 15220.000* 15230.000 1524Distance to nearest hospital 1525 1526-0.025*** 1527-0.009 1528-0.010 1529-0.006 1530-0.012 1531Hospital rating: 1-2 1532 15330.041* 15340.019 15350.019 15360.064* 1537-0.003 1538Hospital rating: 4-5 1539 15400.044** 1541-0.014 1542-0.014 15430.070** 1544-0.017 1545Hospital rating: NA 1546 15470.059*** 15480.013 15490.013 15500.120*** 15510.070 1552Interaction: Distance to nearest 1553hospital * Hospital rating: 1-2 1554 1555 1556 1557 1558-0.014 15590.000 1560Interaction: Distance to nearest 1561hospital * Hospital rating: 4-5 1562 1563 1564 1565 1566-0.021+ 15670.014 1568Interaction: Distance to nearest 1569hospital * Hospital rating: NA 1570 1571 1572 1573 1574-0.044*** 1575-0.027 1576ACS 1577 15780.003*** 15790.003** 15800.003** 1581 1582 1583Walk Score 1584 1585 1586 1587 15880.002*** 15890.001 1590Bike Score 1591 1592 1593 1594 15950.001 15960.000 1597Age 1598yes 1599yes 1600yes 1601yes 1602yes 1603yes 1604Renovation 1605yes 1606yes 1607yes 1608yes 1609yes 1610yes 1611ln (Size) 16120.024** 1613-0.003 16140.027** 16150.027** 1616-0.001 16170.013 1618ln (Number of floors) 1619-0.001 1620-0.004 1621-0.008 1622-0.008 16230.001 16240.011 1625Building class: A 16260.039 16270.023 16280.042 16290.042 16300.025 16310.145* 1632Building class: B 1633-0.011 16340.006 1635-0.010 1636-0.010 16370.003 16380.089 1639GB 1640-0.014 1641-0.028*** 1642-0.013 1643-0.013 1644 1645 1646LEED 1647 1648 1649 1650 1651-0.042*** 1652-0.028** 1653Energy Star 1654 1655 1656 1657 1658-0.019* 1659-0.012 1660Submarkets 1661yes 1662yes 1663yes 1664yes 1665yes 1666yes 1667ln (Office space) 16680.015 16690.017*** 16700.003 16710.003 16720.019*** 16730.010 1674ln (UR) 1675-0.141*** 1676-0.134*** 1677-0.139*** 1678-0.138*** 1679-0.113*** 1680-0.136*** 1681Time 1682yes 1683yes 1684yes 1685yes 1686yes 1687yes 1688Constant 16892.812*** 16902.957*** 16912.793*** 16922.792*** 16932.731*** 16942.712*** 1695Num.Obs. 169651,429 1697199,109 169851,429 169951,429 1700168,759 170142,471 1702R2 17030.704 17040.558 17050.705 17060.704 17070.598 17080.717 1709Adj. R2 17100.703 17110.558 17120.704 17130.703 17140.597 17150.716 1716AIC 1717-81,588.2 1718-256,172.2 1719-81,763.9 1720-81,722.0 1721-226,393.5 1722-67,720.6 1723BIC 1724-79,871.7 1725-253,938.1 1726-79,985.5 1727-79,943.6 1728-224,105.3 1729-65,885.4 1730RMSE 17310.11 17320.13 17330.11 17340.11 17350.12 17360.11 1737Std.Errors 1738HC3 1739HC3 1740HC3 1741HC3 1742HC3 1743HC3 1744Note: *** significant at the 0.1% level, ** significant at the 1% level, * significant at the 5% level, + significant at the 10% level. 1745The information shown in this table is based on data from CompStak, Inc. (financial and building characteristics), WELL (healthy building 1746certifications), Fitwel (healthy building certifications), U.S. EPA (air quality), CMS (hospitals), Walk Score (walkability), LEED (green building 1747certifications), Energy Star (green building certifications), and the U.S. Bureau of Labor Statistics (unemployment rate). 1748 174917501751===== PAGE 29 (score 9, numeric-paren 0, table-words 3, var-words 3) =====1752175329 1754 1755The findings of Model 1 demonstrate that indoor health-promoting characteristics increase the 1756WTP for office space without considering outdoor health-promoting characteristics. In 1757addition, the results of Model 2, Model 3, and Model 4 indicate that certain outdoor health-1758related characteristics as the accessibility to health services and walkability are important 1759factors in determining office rents. When the OHBC were included, the healthy building 1760certifications remain to show a positive and statistically significant impact on rents across all 1761model specifications for standard certifications in general and for the Fitwel standard 1762certification in particular. Therefore, the results indicate that indoor and outdoor health-1763promoting features cannot be substituted fully by each other and that a combination of both 1764adds the most financial value. On one hand, the healthy indoor environments are important to 1765boost productivity, health and well-being of employees who spend most of their working day 1766inside the office building. On the other hand, the health-related characteristics at the 1767neighborhood level matter as they for example affect the way how employees commute to work 1768or spend their lunch breaks and can also affect the indoor environmental quality. It is difficult 1769to provide a clear ranking of which indoor and outdoor health-related features are most 1770important due to the limitations of this study. Table 7 provides selected estimates for Models 17712-4 following the standardization approach by Gelman (2008). For each model, the coefficients 1772are ranked by absolute value. The rankings show mixed results across model specifications, but 1773general trends are discernible. For example, the results indicate that the ACS (standardized 1774coefficient: 0.107-0.113) or walkability (standardized coefficient: 0.023-0.064) have the 1775strongest effect on office rents. Furthermore, if we directly compare the outdoor air quality and 1776healthy building labels, we observe that the indoor health-related features tend to be a larger 1777driver of office rents than outdoor air quality. In particular, a change in the HB certification 1778variables from 0 to 1 is associated with a greater change in rents than a change in the air quality 1779measures by two standard deviations in most model specifications. This finding may indicate 1780that indoor features/certifications are more important for tenants than outdoor air quality. 1781However, the fundamental question arises whether consumers are really aware of factors such 1782as the outdoor air quality and consider this in their consumption decisions. As outlined in 1783section 2 the outdoor air quality can affect the indoor air quality substantially (Allen & 1784Macomber, 2020; Chen & Zhao, 2011), which may be considered when implementing features 1785to improve the indoor air quality. However, our results indicate that the outdoor air quality may 1786not influence the willingness to pay as much as healthy building labels, the accessibility to 1787health services, and walkability. This could be attributable to the easier observability of the 1788latter factors in contrast to outdoor air quality. Moreover, it should be considered that the 1789healthy building certifications measure a bundle of many indoor features and entail a signaling 1790effect, so that comparing the underlying individual features to the individual outdoor features 1791would be a more suitable comparison. To better understand which exact indoor or outdoor 1792health-related characteristics affect rents, future research should include the underlying indoor 1793attributes in the regression instead of using certifications as a proxy when data hereto becomes 1794available. Within the scope of this study, we can bundle the observed OHBC and compare their 1795joint impact on rents in comparison to the HB certifications. Considering outdoor air quality, 1796accessibility to health services, and walkability together, we conclude that health-related 1797location parameters are a greater driver of office rents than indoor HB features as measured by 1798HB certifications. 179918001801===== PAGE 30 (score 41, numeric-paren 24, table-words 2, var-words 10) =====1802180330 1804 1805Table 7: Ranked (Standardized) Health-related Coefficients 1806Dependent 1807variable: 1808ln (Rent) 1809Rank 1810(2a) 1811RE full sample, 1812 1813HBS/HBC & OHBC 1814(2b) 1815RE PSM sample, 1816 1817HBS/HBC & OHBC 1818(3) 1819RE PSM sample, 1820 1821HBS by provider & OHBC 1822(4a) 1823RE full sample, 1824HBS by provider & OHBC 1825detailed 1826(4b) 1827RE PSM sample, 1828HBS by provider & OHBC 1829detailed 18301 1831ACS 18320.113*** 1833ACS 18340.107** 1835ACS 18360.107** 1837NO2 AQI 1838(lagged) 1839-0.068*** 1840NO2 AQI 1841(lagged) 1842-0.055*** 18432 1844Distance to 1845nearest 1846hospital 1847-0.050*** 1848HBS 18490.056*** 1850WELL 1851Standard 18520.053+ 1853Walk Score 18540.064*** 1855CO AQI 1856(lagged) 18570.051*** 18583 1859HBS 18600.041** 1861Distance to 1862nearest 1863hospital 1864-0.016 1865Fitwel 1866Standard 18670.048*** 1868CO AQI 1869(lagged) 18700.049*** 1871WELL 1872Standard 18730.049 18744 1875Overall AQI 1876(lagged) 18770.016*** 1878HBC 18790.012 1880Distance to 1881nearest 1882hospital 1883-0.016 1884Fitwel 1885Standard 18860.046** 1887Fitwel 1888Standard 18890.048** 18905 1891HBC 1892-0.002 1893Overall AQI 1894(lagged) 18950.011*** 1896Overall AQI 1897(lagged) 18980.011*** 1899WELL 1900Standard 19010.045 1902SO2 AQI 1903(lagged) 19040.048*** 19056 1906 1907 1908 1909 1910 1911 1912SO2 AQI 1913(lagged) 19140.041*** 1915O3 AQI 1916(lagged) 19170.026*** 19187 1919 1920 1921 1922 1923 1924 1925O3 AQI 1926(lagged) 19270.038*** 1928Walk Score 19290.023 19308 1931 1932 1933 1934 1935 1936 1937Bike Score 19380.027 1939Distance to 1940nearest 1941hospital 1942-0.022 19439 1944 1945 1946 1947 1948 1949 1950PM2.5 AQI 1951(lagged) 19520.022*** 1953PM2.5 AQI 1954(lagged) 19550.014*** 195610 1957 1958 1959 1960 1961 1962 1963Distance to 1964nearest 1965hospital 1966-0.012 1967Bike Score 19680.006 196911 1970 1971 1972 1973 1974 1975 1976PM10 AQI 1977(lagged) 1978-0.005* 1979PM10 AQI 1980(lagged) 19810.002 1982Note: *** significant at the 0.1% level, ** significant at the 1% level, * significant at the 5% level, + significant at the 10% level. 1983The information shown in this table is based on data from CompStak, Inc. (financial and building characteristics), WELL (healthy building certifications), Fitwel (healthy building certifications), U.S. EPA (air 1984quality), CMS (hospitals), Walk Score (walkability), LEED (green building certifications), Energy Star (green building certifications), and the U.S. Bureau of Labor Statistics (unemployment rate). 198519861987===== PAGE 31 (score 10, numeric-paren 0, table-words 0, var-words 10) =====1988198931 1990 19916. Conclusion 1992 1993It is well established in the extant literature that indoor environmental quality is a critical 1994mediator and direct cause of a number of health conditions. The financial and economic 1995dimensions of health-supporting building features are less well understood. As building owners 1996require a financial mechanism for recouping voluntary investments into these features, higher 1997rental income and, in turn, higher asset values are key features of a business case for healthy 1998buildings. However, the outdoor and neighborhood environment, although largely beyond the 1999control of building owners, is also a major driver of both financial success and health outcomes. 2000 2001This study investigated the financial performance of health-promoting indoor and outdoor 2002building features by using hedonic pricing models on a sample of health-certified office 2003properties and a control sample of non-health-certified offices in 12 U.S. metropolitan areas. 2004The analysis was performed on a unique and proprietary dataset, which contains rental data and 2005building characteristics from CompStak, public data from the certification schemes WELL und 2006Fitwel, as well as data on the air quality, accessibility to health services, walkability, green 2007building certification schemes, and macroeconomic indicators from various sources. In addition 2008to the standard certifications from the named providers, the Covid-related certifications were 2009also considered and analyzed. 2010 2011The results of the panel data and PSM analysis show that office buildings in the U.S. with a 2012healthy building label achieve on average a higher effective rent than comparable offices 2013without a healthy building certification. This rental premium is statistically significant across 2014all model specifications and ranges from 4-6%. 2015 2016Moreover, the present findings indicate that some neighborhood health-related characteristics 2017play at least an equally important role in rent formation as on-site features. For example, the 2018proximity to health services has a significant positive effect on rents. Furthermore, active modes 2019of transportation such as walking, biking, or partly travelling by public transport are associated 2020with a significant increase in rents in these locations. However, results are mixed with regards 2021to outdoor health-related characteristics for certain factors. For instance, a 1-point increase in 2022measured air pollution is associated with a rent increase of 0.1% and hospital quality does not 2023have a clear positive pricing impact. While office buildings close to a hospital with the highest 2024quality rating of 4-5 tend to achieve higher rents than offices close to a hospital with a rating of 20253, we do not observe the expected increase per score level. 2026 2027Regarding the question which health-related certification characteristics may be associated with 2028a higher rental premium, the results suggest that these pertain mainly to standard certifications 2029rather than specialized certifications targeting only specific aspects such as hygiene or infection 2030risk. In particular, the Fitwel standard certification shows a statistically significant positive 2031impact on office rents across all model specifications. 2032 2033Overall, we conclude that the impact of outdoor health-promoting features is additive to the 2034value of indoor health-promoting features. Therefore, both aspects should be considered as 2035important price determinants in the context of a health-supporting office space. However, the 2036mentioned mixed results leave some questions regarding the outdoor air quality and quality of 2037health services unanswered. Comparing the sum of the observable outdoor and indoor health-2038related characteristics, the findings indicate a stronger price effect of the location than the 2039building. The greatest individual impact on rents was observed for the walkability of the 2040neighborhood. 2041 204220432044===== PAGE 43 (score 67, numeric-paren 56, table-words 1, var-words 3) =====2045204643 2047 2048Appendix C 2049 2050Regression Results - Extended 2051Dependent variable: ln (Rent) 2052(1) 2053RE PSM 2054sample, 2055 2056 2057 2058all HB 2059(1b) 2060FE PSM 2061sample, 2062 2063 2064 2065all HB 2066(2a) 2067RE full 2068sample, 2069 2070 2071HBS/HBC 2072& OHBC 2073(2b) 2074RE PSM 2075sample, 2076 2077 2078HBS/HBC 2079& OHBC 2080(3) 2081RE PSM 2082sample, 2083 2084HBS by 2085provider 2086& OHBC 2087(4a) 2088RE full 2089sample, 2090HBS by 2091provider 2092& OHBC 2093detailed 2094(4b) 2095RE PSM 2096sample, 2097HBS by 2098provider 2099& OHBC 2100detailed 2101HB 21020.037*** 21030.037*** 2104 2105 2106 2107 2108 2109 2110(0.009) 2111(0.009) 2112 2113 2114 2115 2116 2117HBS 2118 2119 21200.041** 21210.056*** 2122 2123 2124 2125 2126 2127 2128(0.013) 2129(0.013) 2130 2131 2132 2133HBC 2134 2135 2136-0.002 21370.012 2138 2139 2140 2141 2142 2143 2144(0.010) 2145(0.010) 2146 2147 2148 2149WELL Standard 2150 2151 2152 2153 21540.053+ 21550.045 21560.049 2157 2158 2159 2160 2161 2162(0.030) 2163(0.031) 2164(0.031) 2165Fitwel Standard 2166 2167 2168 2169 21700.048*** 21710.046** 21720.048** 2173 2174 2175 2176 2177 2178(0.014) 2179(0.015) 2180(0.015) 2181Overall AQI (lagged) 2182 2183 21840.001*** 21850.001*** 21860.001*** 2187 2188 2189 2190 2191 2192(0.000) 2193(0.000) 2194(0.000) 2195 2196 2197O3 AQI (lagged) 2198 2199 2200 2201 2202 22030.002*** 22040.001*** 2205 2206 2207 2208 2209 2210 2211(0.000) 2212(0.000) 2213SO2 AQI (lagged) 2214 2215 2216 2217 2218 22190.009*** 22200.010*** 2221 2222 2223 2224 2225 2226 2227(0.001) 2228(0.001) 2229CO AQI (lagged) 2230 2231 2232 2233 2234 22350.012*** 22360.012*** 2237 2238 2239 2240 2241 2242 2243(0.001) 2244(0.002) 2245NO2 AQI (lagged) 2246 2247 2248 2249 2250 2251-0.005*** 2252-0.004*** 2253 2254 2255 2256 2257 2258 2259(0.000) 2260(0.001) 2261PM2.5 AQI (lagged) 2262 2263 2264 2265 2266 22670.002*** 22680.001*** 2269 2270 2271 2272 2273 2274 2275(0.000) 2276(0.000) 2277PM10 AQI (lagged) 2278 2279 2280 2281 2282 22830.000* 22840.000 2285 2286 2287 2288 2289 2290 2291(0.000) 2292(0.000) 2293Distance to nearest hospital 2294 2295 2296-0.025*** 2297-0.009 2298-0.010 2299-0.006 2300-0.012 2301 2302 2303 2304(0.006) 2305(0.012) 2306(0.012) 2307(0.010) 2308(0.020) 2309Hospital rating: 1-2 2310 2311 23120.041* 23130.019 23140.019 23150.064* 2316-0.003 231723182319===== PAGE 44 (score 138, numeric-paren 121, table-words 1, var-words 2) =====2320232144 2322 2323Dependent variable: ln (Rent) 2324(1) 2325RE PSM 2326sample, 2327 2328 2329 2330all HB 2331(1b) 2332FE PSM 2333sample, 2334 2335 2336 2337all HB 2338(2a) 2339RE full 2340sample, 2341 2342 2343HBS/HBC 2344& OHBC 2345(2b) 2346RE PSM 2347sample, 2348 2349 2350HBS/HBC 2351& OHBC 2352(3) 2353RE PSM 2354sample, 2355 2356HBS by 2357provider 2358& OHBC 2359(4a) 2360RE full 2361sample, 2362HBS by 2363provider 2364& OHBC 2365detailed 2366(4b) 2367RE PSM 2368sample, 2369HBS by 2370provider 2371& OHBC 2372detailed 2373 2374 2375 2376(0.017) 2377(0.034) 2378(0.034) 2379(0.026) 2380(0.053) 2381Hospital rating: 4-5 2382 2383 23840.044** 2385-0.014 2386-0.014 23870.070** 2388-0.017 2389 2390 2391 2392(0.014) 2393(0.024) 2394(0.024) 2395(0.023) 2396(0.042) 2397Hospital rating: NA 2398 2399 24000.059*** 24010.013 24020.013 24030.120*** 24040.070 2405 2406 2407 2408(0.017) 2409(0.030) 2410(0.030) 2411(0.027) 2412(0.050) 2413Interaction: Distance to nearest 2414hospital * Hospital rating: 1-2 2415 2416 2417 2418 2419 2420-0.014 24210.000 2422 2423 2424 2425 2426 2427 2428(0.013) 2429(0.023) 2430Interaction: Distance to nearest 2431hospital * Hospital rating: 4-5 2432 2433 2434 2435 2436 2437-0.021+ 24380.014 2439 2440 2441 2442 2443 2444 2445(0.012) 2446(0.021) 2447Interaction: Distance to nearest 2448hospital * Hospital rating: NA 2449 2450 2451 2452 2453 2454-0.044*** 2455-0.027 2456 2457 2458 2459 2460 2461 2462(0.012) 2463(0.023) 2464ACS 2465 2466 24670.003*** 24680.003** 24690.003** 2470 2471 2472 2473 2474 2475(0.001) 2476(0.001) 2477(0.001) 2478 2479 2480Walk Score 2481 2482 2483 2484 2485 24860.002*** 24870.001 2488 2489 2490 2491 2492 2493 2494(0.000) 2495(0.001) 2496Bike Score 2497 2498 2499 2500 2501 25020.001 25030.000 2504 2505 2506 2507 2508 2509 2510(0.000) 2511(0.001) 2512Age: 5<yrs<=10 2513-0.047** 2514-0.055** 2515-0.049*** 2516-0.048** 2517-0.048** 2518-0.053*** 2519-0.056*** 2520 2521(0.016) 2522(0.018) 2523(0.010) 2524(0.016) 2525(0.016) 2526(0.010) 2527(0.015) 2528Age: 10<yrs<=15 2529-0.075*** 2530-0.086*** 2531-0.099*** 2532-0.076*** 2533-0.076*** 2534-0.103*** 2535-0.077*** 2536 2537(0.018) 2538(0.023) 2539(0.012) 2540(0.018) 2541(0.018) 2542(0.013) 2543(0.019) 2544Age: 15<yrs<=20 2545-0.094*** 2546-0.107*** 2547-0.140*** 2548-0.094*** 2549-0.094*** 2550-0.146*** 2551-0.091*** 2552 2553(0.021) 2554(0.028) 2555(0.014) 2556(0.021) 2557(0.021) 2558(0.014) 2559(0.022) 2560Age: 20<yrs<=25 2561-0.114*** 2562-0.132*** 2563-0.192*** 2564-0.115*** 2565-0.116*** 2566-0.205*** 2567-0.132*** 2568 2569(0.024) 2570(0.033) 2571(0.015) 2572(0.024) 2573(0.024) 2574(0.016) 2575(0.025) 2576Age: 25<yrs<=30 2577-0.126*** 2578-0.149*** 2579-0.246*** 2580-0.128*** 2581-0.129*** 2582-0.263*** 2583-0.152*** 2584 2585(0.027) 2586(0.038) 2587(0.017) 2588(0.027) 2589(0.027) 2590(0.018) 2591(0.028) 2592Age: 30<yrs<=35 2593-0.141*** 2594-0.168*** 2595-0.290*** 2596-0.143*** 2597-0.144*** 2598-0.306*** 2599-0.174*** 2600 2601(0.029) 2602(0.043) 2603(0.019) 2604(0.029) 2605(0.029) 2606(0.019) 2607(0.030) 260826092610===== PAGE 45 (score 160, numeric-paren 134, table-words 1, var-words 4) =====2611261245 2613 2614Dependent variable: ln (Rent) 2615(1) 2616RE PSM 2617sample, 2618 2619 2620 2621all HB 2622(1b) 2623FE PSM 2624sample, 2625 2626 2627 2628all HB 2629(2a) 2630RE full 2631sample, 2632 2633 2634HBS/HBC 2635& OHBC 2636(2b) 2637RE PSM 2638sample, 2639 2640 2641HBS/HBC 2642& OHBC 2643(3) 2644RE PSM 2645sample, 2646 2647HBS by 2648provider 2649& OHBC 2650(4a) 2651RE full 2652sample, 2653HBS by 2654provider 2655& OHBC 2656detailed 2657(4b) 2658RE PSM 2659sample, 2660HBS by 2661provider 2662& OHBC 2663detailed 2664Age: 35<yrs<=40 26650.075** 26660.080** 26670.108*** 26680.076** 26690.076** 26700.109*** 26710.071** 2672 2673(0.027) 2674(0.031) 2675(0.017) 2676(0.027) 2677(0.027) 2678(0.017) 2679(0.027) 2680Age: 40<yrs<=45 26810.117 2682 2683-0.198*** 26840.123 26850.120 2686-0.212*** 26870.131 2688 2689(0.207) 2690 2691(0.045) 2692(0.217) 2693(0.218) 2694(0.045) 2695(0.165) 2696Age: 45<yrs<=50 26970.129*** 26980.136*** 26990.207*** 27000.129*** 27010.130*** 27020.213*** 27030.130*** 2704 2705(0.028) 2706(0.035) 2707(0.019) 2708(0.028) 2709(0.028) 2710(0.019) 2711(0.029) 2712Age: yrs>50 2713-0.124*** 2714-0.155** 2715-0.325*** 2716-0.127*** 2717-0.127*** 2718-0.341*** 2719-0.161*** 2720 2721(0.032) 2722(0.048) 2723(0.020) 2724(0.032) 2725(0.032) 2726(0.021) 2727(0.033) 2728Age: NA 27290.032 27300.035 27310.041** 27320.033 27330.033 27340.035** 27350.018 2736 2737(0.021) 2738(0.022) 2739(0.013) 2740(0.020) 2741(0.020) 2742(0.013) 2743(0.020) 2744Renovation: yrs<=5 2745-0.005 2746-0.004 27470.004 2748-0.004 2749-0.004 27500.007 2751-0.007 2752 2753(0.012) 2754(0.013) 2755(0.007) 2756(0.012) 2757(0.012) 2758(0.007) 2759(0.012) 2760Renovation: 5<yrs<=10 27610.009 27620.008 2763-0.003 27640.008 27650.008 2766-0.011+ 2767-0.003 2768 2769(0.012) 2770(0.013) 2771(0.007) 2772(0.012) 2773(0.012) 2774(0.007) 2775(0.012) 2776Renovation: 10<yrs<=15 2777-0.026 2778-0.028 2779-0.036** 2780-0.027 2781-0.027 2782-0.056*** 2783-0.043+ 2784 2785(0.021) 2786(0.025) 2787(0.012) 2788(0.021) 2789(0.021) 2790(0.012) 2791(0.022) 2792Renovation: 15<yrs<=20 27930.018 27940.016 27950.000 27960.016 27970.016 2798-0.013 27990.006 2800 2801(0.016) 2802(0.018) 2803(0.009) 2804(0.016) 2805(0.016) 2806(0.010) 2807(0.017) 2808Renovation: yrs>20 2809-0.001 28100.000 28110.005 2812-0.001 28130.000 28140.005 28150.005 2816 2817(0.018) 2818(0.021) 2819(0.011) 2820(0.018) 2821(0.018) 2822(0.011) 2823(0.020) 2824ln (Size) 28250.024** 2826 2827-0.003 28280.027** 28290.027** 2830-0.001 28310.013 2832 2833(0.009) 2834 2835(0.005) 2836(0.009) 2837(0.009) 2838(0.005) 2839(0.010) 2840ln (Number of floors) 2841-0.001 2842 2843-0.004 2844-0.008 2845-0.008 28460.001 28470.011 2848 2849(0.013) 2850 2851(0.008) 2852(0.013) 2853(0.013) 2854(0.008) 2855(0.014) 2856Building class: A 28570.039 2858 28590.023 28600.042 28610.042 28620.025 28630.145* 2864 2865(0.052) 2866 2867(0.018) 2868(0.052) 2869(0.052) 2870(0.018) 2871(0.068) 2872Building class: B 2873-0.011 2874 28750.006 2876-0.010 2877-0.010 28780.003 28790.089 2880 2881(0.048) 2882 2883(0.012) 2884(0.048) 2885(0.048) 2886(0.013) 2887(0.066) 2888GB 2889-0.014 2890-0.016 2891-0.028*** 2892-0.013 2893-0.013 2894 2895 2896 2897(0.009) 2898(0.010) 2899(0.007) 2900(0.009) 2901(0.009) 2902 2903 2904LEED 2905 2906 2907 2908 2909 2910-0.042*** 2911-0.028** 2912 2913 2914 2915 2916 2917 2918(0.007) 2919(0.009) 292029212922===== PAGE 46 (score 62, numeric-paren 37, table-words 5, var-words 9) =====2923292446 2925 2926Dependent variable: ln (Rent) 2927(1) 2928RE PSM 2929sample, 2930 2931 2932 2933all HB 2934(1b) 2935FE PSM 2936sample, 2937 2938 2939 2940all HB 2941(2a) 2942RE full 2943sample, 2944 2945 2946HBS/HBC 2947& OHBC 2948(2b) 2949RE PSM 2950sample, 2951 2952 2953HBS/HBC 2954& OHBC 2955(3) 2956RE PSM 2957sample, 2958 2959HBS by 2960provider 2961& OHBC 2962(4a) 2963RE full 2964sample, 2965HBS by 2966provider 2967& OHBC 2968detailed 2969(4b) 2970RE PSM 2971sample, 2972HBS by 2973provider 2974& OHBC 2975detailed 2976Energy Star 2977 2978 2979 2980 2981 2982-0.019* 2983-0.012 2984 2985 2986 2987 2988 2989 2990(0.008) 2991(0.009) 2992Submarkets 2993yes 2994no 2995yes 2996yes 2997yes 2998yes 2999yes 3000ln (Office space) 30010.015 3002 30030.017*** 30040.003 30050.003 30060.019*** 30070.010 3008 3009(0.010) 3010 3011(0.005) 3012(0.010) 3013(0.010) 3014(0.005) 3015(0.011) 3016ln (UR) 3017-0.141*** 3018-0.140*** 3019-0.134*** 3020-0.139*** 3021-0.138*** 3022-0.113*** 3023-0.136*** 3024 3025(0.014) 3026(0.014) 3027(0.008) 3028(0.014) 3029(0.014) 3030(0.008) 3031(0.015) 3032Time 3033yes 3034yes 3035yes 3036yes 3037yes 3038yes 3039yes 3040Constant 30412.812*** 3042 30432.957*** 30442.793*** 30452.792*** 30462.731*** 30472.712*** 3048 3049(0.184) 3050 3051(0.092) 3052(0.179) 3053(0.179) 3054(0.106) 3055(0.213) 3056Num.Obs. 305751,429 305851,429 3059199,109 306051,429 306151,429 3062168,759 306342,471 3064R2 30650.704 30660.402 30670.558 30680.705 30690.704 30700.598 30710.717 3072Adj. R2 30730.703 30740.375 30750.558 30760.704 30770.703 30780.597 30790.716 3080AIC 3081-81,588.2 3082-84,407.2 3083-256,172.2 3084-81,763.9 3085-81,722.0 3086-226,393.5 3087-67,720.6 3088BIC 3089-79,871.7 3090-83,841.0 3091-253,938.1 3092-79,985.5 3093-79,943.6 3094-224,105.3 3095-65,885.4 3096RMSE 30970.11 30980.11 30990.13 31000.11 31010.11 31020.12 31030.11 3104Std.Errors 3105HC3 3106HC3 3107HC3 3108HC3 3109HC3 3110HC3 3111HC3 3112Note: *** significant at the 0.1% level, ** significant at the 1% level, * significant at the 5% level, + significant at the 10% level. The standard errors are shown in 3113brackets. 3114The information shown in this table is based on data from CompStak, Inc. (financial and building characteristics), WELL (healthy building certifications), Fitwel 3115(healthy building certifications), U.S. EPA (air quality), CMS (hospitals), Walk Score (walkability), LEED (green building certifications), Energy Star (green 3116building certifications), and the U.S. Bureau of Labor Statistics (unemployment rate). 3117 3118