Rental-Value Model for Green Buildings of Commercial Properties in

RENTAL-VALUE MODEL FOR GREEN BUILDINGS OF COMMERCIAL PROPERTIES IN KLANG VALLEY

 Leader

Assc. Prof. Sr. Dr Rozilah Bt. Kasim

Researchers

Dr Khadijah Md Ariffin

Sr. Dr Mohd Hafizal Ishak

Assoc. Prof. Dr Mohd Lizam Mohd Diah

Prof Sr. Dr David Martin

Research Assistant

Mohammad Akilu Umar

ABSTRACT 

In the context of Malaysia office buildings, sustainable buildings trigger people especially local and multinational companies to rent spaces for business purposes. These raise questions among industry players about the difference rental value for the green and non-green rated buildings. Though the previous study revealed that green office buildings fetch higher rental value and it varies to location, the property market might have deformed due to economic factors. Nevertheless, the obtained result is at the initial stage and requires for further research. Moreover, a recent study shows certification, locational, building characteristics and lease form have strong impacts on the rental value using meta-analysis. However, in Malaysia, there is less study conducted on this aspect. Therefore, this study aims (1) To analyse the cost and benefit derived from green building attribute through rental rates of commercial properties in the case study area. (2) To propose a rental-value model for the green building of commercial properties in the case study area. The research was conducted in Klang valley. Data collection were obtained from the FGD with the selected green building experts from the identified green office buildings within the Klang valleyarea. The findings have deduced cost and benefit attributes of rental rates for commercial green buildings in the case study area. This deduction was translated into a proposed rental value model, which can be benefited by the professional practitioners in green building appraisals as well as green building policymakers.

Keywords: Commercial properties, Green building, Rental value model, Valuation approach.