For and Beyond the Plaques: Sustainable Certification Adoption and Its Impact on Real Estate Decision-Making in the Boston-Cambridge Market

Abstract

As demand for green and healthy buildings grows, real estate developers face complex decisions regarding building certification adoptions, which have become influential in real estate market dynamics. This thesis investigates how developers in the competitive Boston-Cambridge area navigate the sophisticated certification landscape—focusing on LEED, ENERGY STAR, WELL, Fitwel, and WiredScore/SmartScore—to gain competitive advantages, attract and retain tenants, maximize financial performance, and align with regulatory requirements and ESG goals. Using a mixed-methods approach, including quantitative analysis of certification overlaps and trends, along with qualitative insights from industry interviews, the study provides a comprehensive understanding of how real estate developers strategically use certifications to influence asset value while meeting tenant and investor expectations. Findings offer potentially actionable insights into how certifications shape market positioning and inform the decision-making process in real estate development.