The Financial Impact of Healthy Buildings: Research Insights from Natasha Sadikin, Dr. Irmak Turan, and Dr. Andrea Chegut Using CompStak Data

At CompStak, we’re excited to support cutting-edge academic research that explores the intersection of health, sustainability, and commercial real estate.

“The Financial Impact of Healthy Buildings” by Natasha Sadikin, Dr. Irmak Turan, and Dr. Andrea Chegut, research conducted through MIT’s Real Estate Innovation Lab, delves into how healthier buildings can impact financial performance and the broader real estate market.

The full abstract of the paper can be found below, offering a glimpse into the depth of research that leverages the precision and accuracy of CompStak data to assess market changes.

“While the benefits of healthy spaces have long been qualitatively understood and appreciated, their value and impact on economic decision-making has not been financially analyzed. In this research, we use CompStak and Healthy Building public databases from Fitwel and WELL to operationalize a real estate hedonic model in order to ascertain the value of healthy spaces on the effective rent of offices spaces in ten cities within the United States. These cities include Atlanta, Boston, Chicago, Denver, Los Angeles, New York, Philadelphia, San Francisco, Seattle, and Washington DC. We find that healthy building effective rents transact between 4.4 and 7.7% more per square foot than their nearby non-certified and non-registered peers. This premium for healthy spaces is independent of all other factors, such as LEED certification, building age, renovation, lease duration, and submarket. These results indicate that healthy buildings are seen as an asset that correlates with employee or tenant well-being and productivity.”

Download the full paper here.