Producing more sustainable buildings will be better for the planet. But what about the bottom line of the companies that build and own them? Do “green” buildings make more money than “brown” ones?

That was the question posed by research firm Green Street Advisors in a new report, “It’s All Green To Me”.

The company analysed the portfolios of the European office REITs that it covers to find evidence of the economic impact of green buildings. It found these facilities are more profitable in some ways, but not in others. Here are the key findings.

Green Street found that for every 5% increment that is certified green in the total percentage of an office portfolio, the occupancy rate of a company improves by 85 basis points compared to less sustainable rivals.

“It suggests occupier demand for 'green' features beyond the sheer demand for new or refurbished buildings,” Green Street said.

Contrary to other academic studies, Green Street said it found no evidence from its analysis that green offices command premium rents, but vacancy rates for older, less sustainable buildings were higher and they took longer to lease up, making them less profitable.