LEED & Energy Star

LEED and Energy Star are internationally recognized green building certification systems. These designations help building owners differentiate properties and attract tenants by demonstrating environmental leadership and delivering energy savings. Many markets offer incentives to owners that elect to improve and certify their buildings.

What is LEED?

• LEED was developed by the U.S. Green Building Council (USGBC) to provide third-party verification that buildings are achieving a high level of performance
• LEED certification is available in four levels based on a 100-point scale awarded across five primary categories

What is Energy Star?

• Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy
• To be eligible for the Energy Star, a building’s energy performance must be within the top 25 percent of similar facilities, earning at least 75 points on a scale of 1-100.

Why pursue LEED or Energy Star?

• Higher Financial Performance
  • Reduce operating expenses
  • Charge higher rents
  • Increase occupancy
  • Capture financial incentives
  • Meet government mandates
• Better Marketing
  • Differentiate from peers
  • Stand out in listing services
  • Attract environmentally conscious tenants
  • Increase liquidity (decrease time on market)

Does certification pay off?

The table below provides some performance data for green buildings. Please note that correlation does not necessarily imply causation.

Sources: McGraw Hill, USGBC, Royal Institute for Charter Surveyors (RICS), US Energy Information Administration, McGraw Hill SmartMarket Report, US General Services Administration. Study includes but is not limited to LEED buildings.