Sustainability initiatives may pack on additional execution costs – but ballooning exit values for certified assets may make the up-front legwork worth it for investors. 

LEED-certified assets have commanded a 21.4% higher average market sales price per square foot over their non-LEED counterparts over the past three years, according to a new report from Cushman & Wakefield. And LEED-certified assets have also historically outperformed during recession-recovery periods.

Achieving ESG goals through LEED certification does come at a cost, whether through construction or renovation, however. A 2018 study found that the process typically results in 7.43% and 9.43% cost increases for gold and platinum certification levels,  and those fees will scale depending on the size of the project.. Cushman estimates that currently, the costs associated with certifying a 500,000 square foot new construction office building would run between $31,000 and $42,000, and soft costs also increase as architecture and engineering firms charge higher fees for such projects.