Ecological responsiveness and corporate real estate

P.M.A. Eichholtz, N. Kok, J.M. Quigley

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
368 Downloads (Pure)

Abstract

Firms’ real estate choices significantly affect their sustainability, due to real estate’s impact on the natural environment. This paper investigates the ecological responsiveness of firms in specific industries by analyzing the decisions these firms make in occupying office space. We analyze the decisions of more than 11,000 tenants to choose office space in green buildings or in, otherwise comparable, conventional buildings nearby. Controlling for building quality and location, we find that corporations in the oil and banking industries, as well as non-profit organizations, are among the most prominent green tenants. Furthermore, measures of an industry’s human capital intensity are positively related to the propensity to lease green office space. These empirical findings confirm the theoretical framework on economic advantage and institutional pressure as important determinants for the ecological responsiveness of firms.
Original languageEnglish
Pages (from-to)330-360
Number of pages31
JournalBusiness & Society
Volume55
Issue number3
DOIs
Publication statusPublished - Mar 2016

Keywords

  • sustainability
  • green real estate
  • corporate tenants
  • SOCIALLY RESPONSIBLE INVESTMENTS
  • ECO-EFFICIENCY
  • PERFORMANCE
  • GREEN
  • MANAGEMENT
  • ORGANIZATIONS
  • BEHAVIOR
  • CHOICE
  • FIRM

Cite this