Abstract
The traditional commercial office space in the US wastes up to 35% of the energy that it consumes. Green buildings have proven to be very effective in reducing energy waste and lowering energy costs for their owners and tenants. The number of green buildings across the country continues to grow but states are not adopting new building codes at the same rates. Determining what factors that have a significant effect on increasing the number of green certified buildings may lead to more effective policies to increase the number of green buildings in the US. The intent of this thesis is to use a panel data regression analysis to determine the effects financial incentives have on the market penetration rate of the green office space market. The study found that the number of incentives and the rental premium the owners receive in a state have a strong impact on the ratio of green office spaces in the commercial office market.