“This is the first study to quantify the relevance of green building practices in the commercial real estate market,” says Kok, an associate professor of finance. “While we all know examples of LEED-certified buildings, the results presented here are facts based on a robust methodology, not anecdotal evidence.”

“Our primary goal was to understand how prominent green buildings were,” adds Pogue, and have the ability to inform clients whether they were falling behind in the implementation of green methods and technologies, or if attaining Energy Star and LEED certifications would transform their buildings into market leaders. But considering how prevalent green certifications have become, “you may have a disadvantage if you're not green.”

“Green is the new norm,” he says. Since 2005, Energy Star-labeled buildings increased nearly 600%, and the proportion of buildings that received LEED certifications increased from less than 0.5% in 2005 to 5.0%, a more than 1,000% increase. And measured by floor area, LEED-certified space now totals 19.4% of the total building stock in the 30 office markets reviewed.

This study is just the first completed under CBRE's Real Green Research Challenge. Launched in September 2012, the $1 million project will continue to fund sustainability research. Pogue says he hopes to release new data on an annual basis and perhaps expand the research to include retail and industrial properties.