Abstract
Economic principal-agent theory underpins the sharing of energy efficiency information between a landlord and tenant of a commercial office building for the purposes of mitigating energy efficiency investment market failure. This disclosure can occur prior to, and during a commercial office workspace lease contract. When the tenant is the beneficiary of that investment from lower energy costs, disclosure ex-ante theoretically mitigates the adverse selection of a landlord underinvesting in energy efficiency. Continuing to disclose that ex-ante rating during a lease, theoretically mitigates the moral hazard of a landlord undermaintaining the level of energy efficiency disclosed at the start
of the lease. Mandatory ex-ante disclosure policies, such as the Australian Commercial Building Disclosure program, do not, however require disclosure during leases.
of the lease. Mandatory ex-ante disclosure policies, such as the Australian Commercial Building Disclosure program, do not, however require disclosure during leases.
| Original language | English |
|---|---|
| Title of host publication | Proceedings from the 26th Annual Conference PRRES Conference |
| Editors | Graham Squires |
| Place of Publication | Australia |
| Publisher | Pacific Rim Real Estate Society (PRRES) |
| Number of pages | 19 |
| Publication status | Published - 2020 |
| Event | 26th Pacific Rim Real Estate Conference 2020: PRRES 2020 - Canberra, Australia Duration: 19 Jan 2020 → 20 Jan 2020 https://www.prres.org/uploads/572/1019/attachment/PRRES-Conference-2020.pdf https://www.prres.org/conference2020#579 |
Conference
| Conference | 26th Pacific Rim Real Estate Conference 2020 |
|---|---|
| Abbreviated title | The built environment beyond 2020 |
| Country/Territory | Australia |
| City | Canberra |
| Period | 19/01/20 → 20/01/20 |
| Other | PRRES holds a conference in late January each year. The Conference aims to nurture and advance understanding and cooperation in the rapidly changing environment of property education and industry. With Australian and International speakers at the forefront of research and policy-making, the conference offers a challenging professional development experience and networking opportunity. |
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