A tenant asks whether the building has a green certification. A lender requests sustainability documentation before finalizing a refinancing package. A board member asks what “LEED certified” actually means.
For property owners and managers new to these conversations, the terminology is unfamiliar and the business relevance is not always obvious.
This article explains what green building certification is, which programs matter most for commercial properties, and why certification has become increasingly routine in the market.
Key takeaways: Green building certification basics for property owners and managers
Green building certification is an official recognition that a property meets defined standards for how it uses energy and other environmental resources.
What property owners and managers should know
Three fundamentals apply to most commercial properties:
- Certification is independent, third-party verification of how a building performs (not a self-reported claim)
- Most existing buildings start with an energy-focused program before pursuing broader certification
- Annual energy benchmarking is now required in a growing number of cities and states across North America
Why certification is becoming a baseline expectation
Pressure is arriving from multiple directions at once:
- Corporate tenants increasingly expect certified space to meet their own sustainability commitments
- Lenders and insurers may request current performance documentation as part of underwriting or renewal
- Verified performance data may help reduce perceived regulatory risk during transactions and refinancing
Rimkus offers energy audits, building condition assessments, and sustainability consulting to support the certification process. Contact Us
Green building certification is a formal grade for how a building performs
Think of green building certification the way most people think of a grade or a rating. Just as a restaurant earns a health inspection score or a car earns a fuel economy rating, a commercial building can earn a certification that tells the market how efficiently and responsibly it operates.
That grade is not self-assigned. The U.S. Environmental Protection Agency (EPA) describes green building as the practice of designing and operating structures to be environmentally responsible and resource-efficient throughout their life span. In practice, a certified building has been evaluated by an outside organization (not the building owner) and found to meet specific standards.
What programs typically measure
“Resource-efficient” typically centers on three primary areas: energy use, water use, and indoor environmental quality:
- Energy use: how much electricity, gas, or other fuel the building consumes relative to similar properties
- Water use: how efficiently the building uses water across its systems and fixtures
- Indoor air quality: how healthy the environment is for the people working or living inside
Some programs evaluate all three; others focus primarily on energy.
Whatever a program evaluates, all share one critical feature: the evaluation is performed by an independent third party. A building owner cannot self-certify. That independent review is what distinguishes certification from a marketing claim, and it is what gives certification its weight with tenants, lenders, and regulators.
That weight is why certification has become a business expectation
A decade ago, green certification was primarily a marketing differentiator. Today, the same three audiences that give certification its credibility are actively asking for it.
Tenants are requesting it before signing leases
Large corporations increasingly commit publicly to reducing their carbon footprint, and that commitment often extends to the buildings where they operate. In competitive leasing markets, certified buildings often move to the top of the list, which may influence whether a tenant signs or renews.
Regulators are making performance data mandatory
Cities including New York, Boston, Denver, and Washington, D.C. now require large buildings to track and report energy use annually. New York City’s Local Law 97 imposes escalating fines on buildings that exceed emissions limits. Certification and regulatory compliance are not the same thing, but the documentation each requires often overlaps significantly.
Lenders and investors are factoring it into underwriting
Environmental, social, and governance (ESG) criteria are increasingly incorporated into real estate underwriting and investment decision-making. A current energy score or certification may help support a stronger case during refinancing or a property sale.
Each of those audiences tends to favor a different program
Understanding why certification matters raises the next practical question: which program? Several options exist, and they are not interchangeable. The right fit depends on the building type, the goals behind pursuing certification, and which audience’s expectations matter most.
The table below summarizes the most widely used programs for existing commercial buildings.
| Certification | Best suited for | Difficulty to obtain | What it covers |
| ENERGY STAR | Buildings seeking a credible, lender-recognized starting point; properties in cities with annual benchmarking requirements | Lower: requires 12 months of utility data and verification by a licensed Professional Engineer or Registered Architect; renews annually | Energy performance only; scores buildings on a 1–100 scale relative to comparable properties nationwide |
| LEED O+M: Existing Buildings | Institutional owners and corporate tenants with ESG reporting requirements, properties pursuing broad sustainability recognition | Higher: points-based framework across multiple categories with a performance period of at least 12 months; more documentation than ENERGY STAR | Energy, water, indoor air quality, materials, transportation, and site conditions; tiered recognition at Certified, Silver, Gold, or Platinum |
| WELL Building Standard | Office, life sciences, and mixed-use properties with corporate tenants who have active workplace wellness commitments | Higher: evaluates design, operations, and policies across multiple health categories; third-party verification provided by GBCI | Air quality, water quality, lighting, thermal comfort, and sound, focused on occupant health rather than environmental performance |
| Fitwel | Office, hospitality, and multifamily properties seeking health-focused recognition with less documentation than WELL | Lower than WELL: points-based scorecard; generally faster to pursue | Occupant health and wellness across building design and operations; similar scope to WELL with a lighter documentation model |
| Green Globes | Property teams that want broad sustainability coverage but prefer a more consultative, flexible process than LEED | Moderate: assessor-guided process with flexible documentation requirements | Environmental sustainability, health and wellness, and building resilience; covers similar ground as LEED through a different structure |
Fees vary by building size, certification scope, and whether outside professional support is engaged. Energy consulting services can help identify performance gaps and match a property to the right program before the process begins.
The certification process follows a predictable sequence, regardless of the program
With a program selected, the natural next question is what the process actually involves. The details vary, but the sequence is consistent across all programs.
1. Establish a baseline
Before applying, a building typically needs baseline performance data, including at least 12 months of utility bills and sometimes an energy audit. An energy audit is a professional review of where the building may be using more energy than necessary.
2. Identify the gap
That baseline shows where the building stands; the certification threshold shows where it needs to be. Many existing buildings are closer than owners realize, and operational adjustments often close more of the gap than major construction does.
3. Collect and document required data
Closing that gap means gathering what each program specifies:
- ENERGY STAR requires 12 months of whole-building utility data
- LEED requires documentation across multiple sustainability categories
- WELL requires detailed records on air quality, water systems, and lighting
Gathering this documentation accurately is typically the most time-consuming part of the process.
4. Independent review and submission
Once documentation is complete, it moves to an outside reviewer. Most programs require an independent party to verify the submitted data before certification is granted, the same independent verification discussed earlier that gives certification its credibility. A building condition assessment can help establish the baseline documentation needed to enter this process.
5. Maintain performance over time
Certification is not permanent. ENERGY STAR requires annual renewal; LEED requires recertification on a defined cycle. A building that earns certification today needs consistent attention to stay at the certified level.
What “consistent attention” means in practice
That last step is where many buildings run into trouble. A building’s performance can sometimes slip below its certified level between renewal cycles without active monitoring.
The two most common causes
Operational drift: small changes that accumulate over time:
- A tenant renovation adds equipment that increases energy demand
- A building system gets adjusted to address a comfort complaint and never reset
- Occupancy patterns shift without corresponding updates to how the building operates
None of these changes seems significant alone, but together they can pull a building below its certified threshold.
Documentation gaps: record-keeping issues that surface at renewal:
- Utility account structures change after an ownership transition
- Records are not maintained consistently between cycles
- Submeter coverage becomes inconsistent as tenants come and go
Periodic energy reviews and organized record-keeping between cycles can help catch both types of problems before renewal arrives.
Green building has increasingly moved from a specialty topic to a standard consideration in commercial property management.
Beyond the operational commitment, certification may carry financial benefits worth factoring in.
Where the financial case typically comes from
- Tenant positioning: in markets where corporate tenants expect certified space, certification may affect whether a lease gets signed and at what terms
- Regulatory standing: in cities with active building performance laws, current documentation may help avoid the fines that non-compliance triggers
- Transaction support: during refinancing or a property sale, performance data may support a stronger case with lenders and investors
- Federal tax incentives: for tax year 2025, the Section 179D deduction may allow qualifying building owners to deduct up to $5.81 per square foot when prevailing wage and apprenticeship requirements are satisfied; lower amounts apply when they are not
A few important notes on Section 179D: the IRS adjusts these figures annually for inflation, the deduction does not apply to construction beginning after June 30, 2026, and a qualified tax professional should be consulted before relying on this incentive. Full eligibility requirements are published by the IRS.
Those tenant, regulatory, lender, and tax considerations together explain why certification has moved from a specialty topic to a standard part of commercial property management. Property owners and managers who understand the basics are better positioned to respond when those conversations arrive. Most buildings that pursue certification begin with a baseline energy assessment, then work with a qualified consultant to identify the right program before committing to a timeline. Rimkus works with building owners and property managers on energy consulting and built environment assessments. Contact Rimkus to discuss next steps.
Frequently asked questions
What is the difference between green building certification and a building energy audit?
An energy audit is a diagnostic review that evaluates how a building currently uses energy and identifies opportunities to reduce waste; certification is official recognition from an outside organization that a building meets defined performance standards. Many certification programs require an energy audit or energy score as a starting point, so the two processes often overlap.
Is green building certification the same as net zero?
No. Green building certification programs evaluate buildings across a range of sustainability criteria and award recognition based on overall performance scores; net zero is a specific energy goal (sometimes pursued through its own separate certification) in which a building produces as much energy from renewable sources as it consumes over the course of a year. The two are related but distinct, and environmental consulting can help owners evaluate which approach fits their goals.
Which certification is the most practical starting point for an existing commercial building?
ENERGY STAR is generally the most common starting point for existing buildings. It focuses on energy performance, requires 12 months of utility data, is widely recognized by lenders and tenants, and involves less documentation than broader programs such as LEED. Many buildings use it as a foundation and add additional certification programs as their goals and resources allow.
This article is intended to provide general information and insights into prevailing industry practices. It is not intended to constitute, and should not be relied upon as, legal, technical, or professional advice. The content does not replace consultation with a qualified expert or professional regarding the specific facts and circumstances of any particular matter.