Commercial Buildings Factsheet

Commercial buildings include, but are not limited to, stores, offices, schools, places of worship, gymnasiums, libraries, museums, hospitals, clinics, warehouses, and jails. Their design, construction, operation, and demolition impact natural resources, environmental quality, worker productivity, and community well-being.

Patterns of Use

  • In 2018, 5.9M commercial buildings contained 96B ft2 of floor space in the U.S.—an increase of 56% in the number of buildings and 89% in floor space since 1979.1,2 By 2050, commercial floor space is expected to reach 143B ft2, a 38% increase from 2024.3
  • Warehouses occupy the largest share of U.S. commercial floor space, accounting for 20.1%. Offices make up 18.5%, mercantile buildings (e.g., retail stores) 17.2%, and assembly spaces (e.g., auditoriums, convention centers) 12.4%.3
U.S. Commercial Buildings by Principal Activity, 20243
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U.S. Commercial Buildings by Principal Activity, 2024

Resource Consumption

Energy Use (See U.S. Energy System Factsheet)

  • In 2024, the commercial sector used 16.45 quads of energy, 17% of the U.S. total, a 64% increase from 1980.4
  • In 2024, U.S. commercial buildings spent over $241B on energy. Space heating and cooling accounts for 21% of commercial energy use.3
  • Operation accounts for 80–90% of a building’s life cycle energy consumption, vs. 10–20% for construction.8
  • A University of Michigan campus building with a 75-year lifespan used more energy in under 2.5 years of operation than was used in its material production and construction combined.9

Material Use (See U.S. Material Use Factsheet)

  • Typical buildings contain materials including drywall, asphalt, wood, metals, and concrete (a mixture of minerals, sand, water, and gravel).10,11
  • In 2017, structural steel made up 46% of the material market share for non-residential and multi-story residential buildings, followed by concrete at 34%. While durable, both materials have higher embodied emissions than other materials and require significant energy to produce.12

Water Consumption

  • The commercial and institutional sector is the second largest user of publicly supplied water in the U.S., accounting for 17% of withdrawals from public water supplies.14
  • In 2005, commercial buildings used an estimated 10.2B gal/d of water, an increase of 23% from 1990 levels.6
  • Domestic and restroom use is the largest water use in most commercial buildings, except in restaurants where 52% of water is used for dishwashing and kitchen activities.15

Life Cycle Impacts

Construction and Demolition Waste (See U.S. Water Supply and Distribution Factsheet)

  • In 2018, 600 Mt of construction and demolition (C&D) waste was generated in the U.S.10—approximately 10 lbs/capita of waste daily, or twice the per capita municipal solid waste average of 4.9 lbs.10,16 See the Municipal Solid Waste Factsheet.
  • 76% of C&D waste was repurposed or recycled in 2018, mostly for use as aggregate and in manufacturing.5 Most frequently recovered and recycled were concrete, asphalt, metals, and wood.17 More than 75% of unrecycled construction waste has a residual value.7
U.S. Commercial Buildings Primary Energy, 20106

Indoor Air Quality

  • Volatile Organic Compounds (VOCs) are found in concentrations 2 to 5 times greater indoors than in nature. Exposure to high concentrations of VOCs can result in eye, nose, and throat irritation, headaches and nausea, and extreme effects, such as cancer or nervous system damage. VOCs are emitted from adhesives, paints, solvents, aerosol sprays, and disinfectants.18
U.S. Commercial Buildings Energy Use, 20243
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commercial energy use

Greenhouse Gas Emissions (See Greenhouse Gases Factsheet)

  • The buildings sector generates 1,563 Mt CO₂/yr, one-third of total U.S. energy system emissions. Commercial buildings account for nearly 50% of buildings sector and 15% of total energy system emissions.3
  • As energy efficiency and renewable energy adoption reduce operational emissions, embodied emissions from building materials and construction are projected to dominate new building life cycle emissions by 2050.20

Solutions and Sustainable Alternatives

Opportunities

  • Before 2000, building design and construction paid little attention to energy use and environmental impact.21 For typical commercial buildings, energy efficiency measures can reduce energy use by 30% without major design changes.22
  • As of 2007, 62% of office buildings could achieve net-zero energy use with existing energy efficiency technologies and solar PV. Redesigning all buildings to meet current standards, implementing efficiency measures, and adding solar PV could reduce average energy use intensity by 86%.23
  • Energy Star Portfolio Manager tracks energy and water use, covering nearly 25% of U.S. commercial building space. It is the leading database to benchmark performance and provide transparency to building managers and tenants.24
  • States are moving to increase transparency in buildings’ energy and water use. New York City passed local laws requiring large building owners to publicly report energy and water use.25
  • U.S. office vacancy rates have climbed 47% since the start of COVID-19, suggesting potential for real estate repurposing.26 Repurposing can significantly cut emissions, with retrofitting halving carbon output compared to new construction.27
  • Using porous paving materials and native vegetation instead of grass lawns can reduce erosion and pollution from stormwater runoff. A typical city block generates 5 times more runoff than a woodland area of equal size.28
     

Design Guidelines and Rating Systems

  • The International Energy Conservation Code (IECC) and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE 90.1) provide minimum energy efficiency standards for commercial buildings.13 These provisions will save 7.75 quads of energy and reduce commercial energy costs by $78B (2021$) from 2010–2040.44
  • The U.S. Green Building Council developed the Leadership in Energy and Environmental Design (LEED) rating system to assess building performance. LEED awards points for design features that reduce environmental impact and support healthy, sustainable buildings.29 By November 2024, the U.S. had 89,512 LEED certified buildings.30
  • Passive House Institute U.S. provides a climate-specific building standard to minimize energy use and emissions,31 mainly focused on insulation and airtightness.32 As of July 2025, there are 522 certified PHIUS buildings.33
  • The Living Building Challenge, an initiative by the International Living Future Institute, comprises seven performance areas, or “petals:” place, water, health and happiness, energy, materials, equity, and beauty.34 As of 2025, there are over 250 certified Living Buildings.35
  • SITES certification for landscapes promotes nature-based solutions to protect ecosystems, while enhancing benefits to communities (e.g., climate mitigation and improving public health). As of 2025, 106 projects have SITES certification.36,37
  • BREEAM certification measures sustainability across multiple categories. As of July 2025, 207 projects worldwide have achieved BREEAM Outstanding In-Use.38,39

ASHRAE Commercial Building Code by State, 202445

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Commercial Building Code Relative to ASHRAE, 2024.

Case Studies

  • The Center for Sustainable Landscapes (CSL) was recognized by the American Institute of Architects (AIA) in its 2016 Commitment to the Environment Top Ten Projects. It was the first building to meet seven of the highest green certifications — the Living Building Challenge, LEED Platinum, SITES Platinum, WELL Building Platinum, BREEAM Outstanding In-Use, Zero Energy Certification, and Fitwel 3 Star green certifications.40,41 CSL is a net-zero energy building, which significantly reduces its operational environmental impact, however, it had near equal embodied energy and 10% higher global warming potential than a conventional building.42
  • Boardwalk Campus, an AIA COTE 2025 Top 10 Award Winner, is the first net-zero energy and water school in Massachusetts and was built within a standard school budget. It consolidates two elementary schools and a preschool into a low-impact campus featuring stormwater conservation and reuse, PV and energy storage, ground-source heat pump, high insulation, and low-carbon concrete. The school is carefully sited to protect adjacent wetlands and the local ecosystem.43
Cite As

Center for Sustainable Systems, University of Michigan. 2025. “Commercial Buildings Factsheet.” Pub. No. CSS05-05.

1.      U.S. Energy Information Administration (EIA) (2022) “2018 Commercial Buildings Energy Consumption Survey.”              

https://www.eia.gov/consumption/commercial/data/2018/index.php?view=characteristics

2.          U.S. EIA (1981) “1979 Nonresidential Buildings Energy Consumption Survey.”      

3.          U.S. EIA (2025) Annual Energy Outlook 2025.   

https://www.eia.gov/outlooks/aeo/

4.          U.S. EIA (2025) Monthly Energy Review June 2025 

https://www.eia.gov/totalenergy/data/monthly/

5.          US EPA (2024) Construction and Demolition Debris_ Material-Specific Data              

https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/construction-and-demolition-debris-material

6.          U.S. Department of Energy (DOE), Energy Efficiency and Renewable Energy (EERE) (2012) 2011 Buildings Energy Data Book.  

https://ieer.org/wp/wp-content/uploads/2012/03/DOE-2011-Buildings-Energy-DataBook-BEDB.pdf

7.          Purchase et al. (2021) Circular Economy of Construction and Demolition Waste 

https://pmc.ncbi.nlm.nih.gov/articles/PMC8745857/

8.          Ramesh, T., et al. (2010) "Life cycle energy analysis of buildings: An overview." Energy and Buildings, 42(2010): 1592-1600. 

http://www.sciencedirect.com/science/article/pii/S0378778810001696

9.          Sheuer, C., et al. (2003) "Life cycle energy and environmental performance of a new university building: modeling challenges and design implications." Energy and Buildings, 35: 1049-1064. 

https://www.sciencedirect.com/science/article/pii/S0378778803000665

10.        U.S. EPA (2020) Advancing Sustainable Materials Management 2018 Fact Sheet.  

https://www.epa.gov/sites/default/files/2021-01/documents/2018_ff_fact_sheet_dec_2020_fnl_508.pdf

11.        U.S. DOE, EERE (2003) "Energy and Emission Reduction Opportunities for the Cement Industry." 

https://www1.eere.energy.gov/manufacturing/industries_technologies/imf/pdfs/eeroci_dec03a.pdf

12.        American Institute of Steel Construction (2018) "Structural Steel: An Industry Overview" 

https://www.aisc.org/globalassets/aisc/publications/white-papers/structural_steel_industry_overview_2018.pdf

13.        US DOE (2025) Commercial and Residential Building Energy Codes _ Building Energy Codes Program       

https://www.energycodes.gov/commercial-and-residential-building-energy-codes

14.        U.S. Environmental Protection Agency (EPA) (2023) Watersense: Type of Facilities.              

https://www.epa.gov/watersense/types-facilities#Commercial%20and%20Institutional%20Sector

16.        U.S. Census Bureau (2021) Population on a Date.              

https://www.census.gov/popclock/

17.        Construction and Demolition Recycling Association (2017) Benefits of Construction and Demolition Debris Recycling in the United States. 

https://cdrecycling.org/site/assets/files/1050/cdra_benefits_of_cd_recycling_final_revised_2017.pdf

18.        U.S. EPA (2017) “Volatile Organic Compounds' Impact on Indoor Air Quality.”              

https://www.epa.gov/indoor-air-quality-iaq/volatile-organic-compounds-impact-indoor-air-quality

20.        Simonen, K., et al. (2017) “Benchmarking the Embodied Carbon of Buildings.” Technology|Architecture Design, 1(2), 208–218. 

https://www.tandfonline.com/doi/pdf/10.1080/24751448.2017.1354623?needAccess=true

21.        The American Institute of Architects and Rocky Mountain Institute (2013) “Deep Energy Retrofits: An Emerging Opportunity.”

 https://content.aia.org/sites/default/files/2016-04/Deep-Energy-Retrofits-EmergingOpportunity.pdf

22.        "Kneifel, J. (2010) ""Life-cycle carbon and cost analysis of energy efficiency measure in new commercial buildings."" Energy and Buildings, 42(2010): 333-340." 

http://www.sciencedirect.com/science/article/pii/S0378778809002254

23.        "Griffith, B., et al. (2007) Assessment of the technical potential for achieving net zero-energy buildings in the commercial sector. National Renewable Energy Laboratory."  

https://www.nrel.gov/docs/fy08osti/41957.pdf

24.        Energy Star (2021) “Portfolio Manager.”   

https://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/use-portfolio-manager

25.        New York City, Mayor's Office of Sustainability (2020) "About LL84." 

https://www1.nyc.gov/html/gbee/html/plan/ll84_about.shtml

26.        Colliers International (2024) "Quarterly office vacancy rates in the United States from 4th quarter 2017 to 4th quarter 2023." 

https://www.statista.com/statistics/194054/us-office-vacancy-rate-forecasts-from-2010/

27.        World Economic Forum (2024) "Deep retrofits: how repurposing old buildings can mitigate climate change." 

https://www.weforum.org/agenda/2024/02/deep-retrofit-buildings-carbon-emissions-climate-change/

28.        U.S. EPA (2003) Protecting Water Quality from Urban Runoff. 

https://www3.epa.gov/npdes/pubs/nps_urban-facts_final.pdf

29.        U.S. Green Building Council (USGBC) (2020) “Why LEED.”               

https://www.usgbc.org/leed/why-leed

30.        USGBC (2024) Impact-Report-Jan-25 

https://www.usgbc.org/sites/default/files/2025-02/USGBC-Impact-Report-Jan-25.pdf

31.        Passive House Institute US (PHIUS) (2021) "PHIUS Milestones"              

https://www.phius.org/milestones

32.        Passive House Institute US (2022) "Passive House Principles"              

https://www.phius.org/what-is-passive-building/passive-house-principles

33.        Passive House Institute US (2025)"Certified Projects Database"              

https://www.phius.org/phius-certification-for-buildings-products/certified-projects-database?sort=%60CertificationStates%60.%60CertificationState%60+ASC

34.        International Living Future Institute (2021) Living Building Challenge 4.0.              

https://living-future.org/lbc/basics4-0/

35.        International Living Future Institute (2025) "Our Living Future Projects Map."              

https://living-future.org/our-living-future-map/

36.        The Sustainable SITES Initiative (2023) "SITES Rating System."  

https://www.sustainablesites.org/certification-guide

37.        The Sustainable SITES Initiative (2025) "SITES Rating System."           

http://www.sustainablesites.org/projects

38.        BREEAM (2023) How BREEAM Works.            

https://www.breeam.com/discover/how-breeam-certification-works/

39.        BREEAM (2025) certified BREEAM assessments 

https://tools.breeam.com/projects/explore/buildings.jsp?sectionid=10155&subschemeid=0&projectType=&rating=Outstanding&certNo=&buildingName=&client=&developer=&certBody=&assessor=&location=&countryID=0&partid=10023&Submit=Search

40.        American Institute of Architects (2017) COTE Top Ten Awards.              

http://www.aiatopten.org/node/507

41.        Phipps (2023) Center for Sustainable Landscapes.     

https://www.phipps.conservatory.org/green-innovation/at-phipps/center-for-sustainable-landscapes-greenest-building-in-the-world

42.        "Thiel, C., et al. (2013) ""A Materials Life Cycle Assessment of a Net-Zero Energy Building."" Energies 2013, 6, 1125-1141."            

http://www.mdpi.com/1996-1073/6/2/1125

43.        AIA COTE Top Ten Award (2025) Boardwalk Campus   

https://aia.secure-platform.com/a/gallery/rounds/723/details/61467

44.        U.S. DOE, Pacific Northwest National Laboratory (2023) Impacts of Model Building Energy Codes              https://www.osti.gov/biblio/2229430

45.        US DOE (2024) State Portal _ Building Energy Codes Program          

https://www.energycodes.gov/state-portal

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