Can "good" architecture meet the market test?

Architectural quality is a public good characteristic of a building for which a market failure may occur. A hedonic price equation for office space in downtown Chicago is estimated to determine if the value of "good" architecture has been internalized by tenants or owners of commercial buildings. The regression results indicate that a considerable rent premium is paid for "good" new architecture but not for "good" old architecture. The results also yield information about the impact on office rent of other building characteristics such as age, height, location, and amenities.