This study contributes to academic researches regarding corporate governance mechanism and green building. The aim of this study is to test the association between corporate governance practices, especially corporate ownership structure with two proxies namely institutional holding and concentrated ownership structure and decision to implement Green Building in the U.S. Real Estate Investment Trusts (REITs) context. We use data regarding all Leadership in Energy & Environmental Design (LEED) certificated infrastructures of U.S. REITs from 2000 – 2016 and employ a regression analysis. The results show us that corporate governance practices implemented to align shareholders’ and managers’ interests such as higher institutional holding and lower dispersed ownership structure positively impact firm resource allocation for green initiatives. Moreover, the study found the evidence regarding the presence of information asymmetry which is potentially correlated with corporate investment, hence contributes to the reduction of the corporate governance practice effect on firm resource allocation for green building. Especially, the result emphasized the vital role of institutions in REITs’ control system.

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