A signiﬁcant part of the global carbon externality stems from buildings. Environmental certiﬁcation is often hailed as an eﬀective means to resolve the information asymmetry that may prevent markets from eﬀectively pricing the energy performance of buildings. This study analyzes the adoption and ﬁnancial outcomes of environmentally certiﬁed commercial real estate over time. We document that nearly 40 percent of space in the 30 largest U.S. commercial real estate markets holds some kind of environmental certiﬁcation in 2014, as compared to less than 5 percent in 2005. Tracking the rental growth of some 26,000 oﬃce buildings, we then measure the performance of environmentally certiﬁed real estate over time. We document that certiﬁed oﬃce buildings, on average, have slightly higher rental, occupancy and pricing levels, but do not outperform non-certiﬁed buildings in rental growth over the 2004-2013 period. Further performance attribution analysis indicates that local climatic conditions, local energy prices and the extent of certiﬁcation lead to signiﬁcant heterogeneity in market pricing. On aggregate, these ﬁndings provide some evidence on the eﬃciency of the market in the adoption and capitalization of environmental characteristics in the commercial real estate market.