The Impact of ESG Certifications on Class A Office Buildings in Madrid: A Multi-Criteria Decision Analysis

This study examines the relationship between ESG certifications and performance indicators of Class A office buildings in Madrid's Central Business District. Using a Multi-Criteria Decision Methodology, we evaluate 21 properties with varying degrees of renovation and CAPEX investment. The research reveals that ESG-certified buildings command higher valuations, experience reduced brown discounts, and benefit from improved speed to market compared to non-certified properties. Furthermore, these buildings achieve higher asking rents and enjoy easier access to financing. The results underscore the significant role of ESG certifications in enhancing real estate performance and investment attractiveness in the Spanish office market, providing valuable insights for investors, developers, and policymakers navigating the intersection of sustainability and commercial real estate.