Is Green (still) a Matter of Prime? Stylized Facts about the Location of Commercial Green Buildings

Abstract

We investigate the status quo of commercial green building locations and changes made over time in 103 metropolitan statistical areas (MSAs) to detect indications of the maturity of the commercial green building market. The findings of the descriptive analysis, based on LEED data provided by the U.S. Green Building Council, are twofold. First, commercial green buildings are typically located in prime locations. Second, since 2006, a slight hierarchical diffusion process from prime to non-prime locations is observed, particularly among low-level certifications, which indicates an effective product differentiation, rising market transparency, and increased learning curve effects on the commercial green building market.