How Trees Can Boost Commercial Real Estate

How Trees and Landscaping Impact Commercial Real Estate Value (And How to Use That to Your Advantage)

For real estate investors and property managers, every edge counts when it comes to increasing property value and rental income. One often-overlooked factor? Trees and professional landscaping.

A landmark study published in Arboriculture & Urban Forestry by Robert J. Laverne and Kimberly Winson-Geideman found clear evidence that well-planned tree coverage and landscaping can boost commercial property rental rates, while poor design can actually harm them.

Here’s what the research revealed — and how you can use those insights to improve your own commercial properties.

🌳 What the Study Found: Trees and Higher Rental Rates

The study examined 85 office buildings and 270 commercial leases in the Cleveland area. Researchers used advanced statistical modeling to identify which landscaping features had measurable effects on lease rates.

🔑 Key Findings:

  • Attractive Landscaping = Higher Rent
    Buildings with professional, well-maintained landscaping commanded significantly higher rental rates.

  • Tree Shade Adds Value
    Trees that provide shade to the building (especially on sun-facing walls) correlated with higher leasing prices, possibly due to improved energy efficiency and comfort.

  • Visual Screens Can Hurt Value
    Dense rows of trees that block views or reduce visibility of the building actually lowered rental rates.

🏢 Real Estate Strategy: How to Apply This to Your Portfolio

If you're a property manager, investor, or developer, these research findings are more than academic — they’re profit-driving strategy. Here’s how to apply them:

✅ 1. Invest in Curb Appeal with Professional Landscaping

Why it works: Aesthetically pleasing landscapes attract tenants and give properties a premium image.

How to do it:

  • Hire certified arborists and professional landscapers.

  • Use layered planting designs with trees, shrubs, and perennials.

  • Maintain tidy lawns, fresh mulch beds, and defined walkways.

🌳 2. Plant Trees Strategically for Shade and Energy Efficiency

Why it works: Shaded buildings stay cooler in summer, reducing HVAC costs and increasing tenant comfort.

How to do it:

  • Plant deciduous trees on the south and west sides of buildings.

  • Use fast-growing native species with high canopy spread.

  • Install root barriers and irrigation to protect walkways and structures.

👀 3. Don’t Block Views — Enhance Them

Why it matters: The study found that tree rows used as visual screens reduced rental rates.

How to fix it:

  • Avoid planting dense hedges or trees that fully obscure signage, entryways, or views from the road.

  • Opt for selective screening that balances privacy with visibility.

  • Use trees with high canopies that allow clear sightlines underneath.

💡 4. Highlight Landscaping in Marketing Materials

Why it works: Well-maintained trees and landscapes create visual impact for online listings, brochures, and investor presentations.

How to do it:

  • Use drone photography to showcase tree-lined entrances and outdoor amenities.

  • Add “Energy Efficient with Tree-Shaded Exterior” as a feature bullet.

  • Promote environmental responsibility with native species and sustainable practices.

📈 5. Use Landscaping Upgrades to Justify Rent Increases

Why it matters: Tenants are willing to pay more for an attractive, functional, and energy-efficient property.

How to do it:

  • Tie landscape improvements to rent renewal or escalation clauses.

  • Share “before and after” photos to illustrate value upgrades.

  • Offer outdoor workspaces or shaded break areas as amenities.

🔁 Bottom Line: Landscaping is a Long-Term Investment in Property Value

The Laverne and Winson-Geideman study proves what many in the industry already suspected: landscaping directly influences commercial real estate revenue.

By incorporating the right trees in the right places — and avoiding costly visual barriers — property owners can:

✅ Raise rental rates
✅ Attract better tenants
✅ Improve property longevity and appeal
✅ Reduce energy costs
✅ Increase overall asset value

🛠 Pro Tip: Partner with a Professional Tree Service

If you're serious about using tree care as a value driver, don't leave it to chance. Partner with a certified, insured tree service that understands both arboriculture and real estate strategy — like Top Branch Tree Service, a trusted expert in property-focused tree management throughout Maine and New England.

To view the whole study for yourself click here: https://auf.isa-arbor.com/content/29/5/281

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