Building momentum: An analysis of investment trends in LEED and Energy Star-certified properties

This article analyzes investment trends for Leadership in Energy and Environmental Design- and Energy Star-certified buildings in the United States with a view towards deriving clues for expected future developments in the face of the current economic downturn. Empirical studies have found sales and rental price premiums of varying magnitudes, which is confirmed by a simple analysis of the post-2000 Class A office market segment. No significant difference is found for the average time to sale for eco-certified buildings. Furthermore, eco-certified buildings exhibit the growth rates typical of innovative products with particular spatial foci adopting the new product more rapidly than the rest of the country. The analysis of credit scores and certification level suggests that scores cluster around the lower boundaries of each certification level suggesting that the principle of least effort also applies to eco-certifications. Overall, the available data do not indicate a trend reversal due to the economic downturn and further growth of this market segment appears likely.