The document discusses the advantages and challenges of implementing green building practices in multifamily properties, emphasizing the importance of net operating income for property managers. It explores differences in the LEED certification process, the impact of extreme temperatures on green property certification, and rental market implications associated with these green initiatives. The findings suggest that green multifamily buildings typically command higher rents compared to non-green counterparts, indicating a potential bifurcation in the rental market.

1. GREEN BUILDING AND MULTIFAMILY
HACE 4300
University of Georgia
Andy Carswell, Ph.D.

2. LET’S SAY THAT YOU ARE A
PROPERTY MANAGER WITH
A BRIGHT IDEA!

3. ‘ I REALLY THINK WE SHOULD
GO GREEN WITH OUR
PROPERTY’

4. THE OWNER OF THE
PROPERTY MIGHT BE A BIT
HESITANT

5. THIS INVESTMENT WILL
LARGELY DEPEND ON THREE
SIMPLE THINGS

6. net

7. operating

8. income

9. I CAN’T HEAR YOU! LET’S
REPEAT…

10. NET

11. OPERATING

12. INCOME!!

14. RESEARCH QUESTIONS



Which specific areas of the LEED certification process
do multifamily properties differ from other property
types?
Is there an association between areas with extreme
temperatures and the certification/registration of green
properties? If so, does this association become less
significant over time as LEED certification becomes
more commonplace?
Does green multifamily building occur in areas that are
considered high-priced?

17. Median Gross Rent - Green
Building
$ 715.41
Median Gross Rent - Citywide
$ 645.75
N
216
t-Value
3.426
Sig.
0.001

18. IMPLICATIONS, LIMITATIONS,
AND SUGGESTIONS FOR
FUTURE

Potential bifurcation of rental market

Possible implications for property managers

Image problem for “non-green” multifamily developers

Conundrum for appraisers of apartment buildings

Potential exists for surveys gauging satisfaction and
perception of green residences by occupants