Green Premium in the Tokyo Office Rent Market

More than 10 years have passed since studies on green buildings gained attention in the academic and industrial literature. Many report economic value of buildings, mainly U.S. European markets. An empirical clarification dynamics premiums has significant implications for future urban sustainability. This study constructed a dataset Tokyo office rents from 2009 to 2019. We estimated rental premium using hedonic approach. Our results show that, average, an property with label gains approximately 6.5% contract rents. The market is heterogeneous, endogeneity issue when identifying premium. addressed propensity score clustering. As result our estimation, was +5.4% medium-sized old +2.6% large-sized new buildings.