Mediation effect of social aspect in the relationship between environmental and economic aspects: Their influence on the value of green commercial office property

Abstract

The potential value of green buildings is generally attributed to attractiveness for occupiers due to the environmental aspect which brings an impact to the social action, which eventually influences the economic aspect. These three aspects of sustainability (environment, social and economic), which adopted from Concentric Ring model contained various attributes. These attributes may or may not have significant influence among them, thus act as an indicator in impacting the green commercial office building’s value. Accordingly, it is substantial to identify which attributes of green commercial office property have significant relationship of sustainability and to what level of influence among them, including the role of social aspect as a mediator between environment and economic aspects of sustainability. In order to analyse the hypothesized relationships, this study collects quantitative data from the property holders and also end users (tenants and owner-users) of green commercial office building, as they experience the benefits of sustainability in the building. Data were analysed using confirmatory factor analysis (CFA) with IBM SPSS Statistics 20.0 and AMOS 19.0, respectively. The results show that all hypothesized relationships between environmental, social and economic aspects were supported and indicated significant relationships among them, hence become a fundamental of green commercial office property valuation framework development.