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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Minergie labels in Switzerland: Mitigation of tenant-related risks
Organization Unit
  • Björn Bloch
  • Dr. Syz Juerg
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 52
Date 2022
Zusammenfassung Problem Statement Buildings worldwide account for more than one third of global energy use and greenhouse gas emissions and are therefore a significant driver of climate change. In the EU, buildings account for 42% of the final energy consumption and for 35% of all greenhouse gas emissions. Energy efficiency labels or so-called \green building labels" play an important role in the measurement of the environmental impact and can therefore be used to identify and define a green or sustainable building. Green building labels are getting more and more attention by investors, home owners, tenants, and regulators to measure energy efficiency of buildings. To financially incentivise investors to develop green buildings that consume less energy, green buildings need to offer a better risk and return profile than \conventional buildings" without energy certificates. While price and rent premia of green buildings are covered by many studies, empirical evidence about possible \tenant premia" such as lower vacancy rates or tenant fluctuation rates due to potential higher tenant satisfaction is rare. The existence of a tenant premium of green buildings could therefore incentivise investors to spend money to get green building labels to increase net operating income and hence asset valuations while reducing energy consumption. Evidence on risk reduction could therefore further reveal the risk-adjusted financial benefits of green buildings and incentivise real estate investors to reduce their ecological footprint. Objectives The main research objectives of this master's thesis are i) to illustrate the key drivers of vacancy and fluctuation rates, ii) to analyse the correlation of tenant satisfaction regarding building comfort and building certifications and iii) to analyse the impact of building certification on vacancy rates and tenant fluctuation rates in Switzerland between 2019 and 2021 based on a sample of approximately 1'200 commercial and residential properties. The data set is split into a residential and commercial sample to quantify the potential premia separately. Furthermore, the impact of tenant-related risks on real estate valuation is illustrated by using the discounted cash flow model. The most relevant building certificates in Switzerland and tenant preferences about green labels are elaborated. Finally, a possible tenant premium of certified buildings in Switzerland is quantified by using the hedonic regression model. Price and rent premia of labelled buildings are not be part of the analysis.
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