Achieving Green Certifications for Multifamily Buildings: LEED & Energy Star

As sustainability becomes increasingly crucial in the real estate industry, green certifications like LEED (Leadership in Energy and Environmental Design) and Energy Star have gained significant importance. These certifications enhance the sustainability of multifamily buildings and increase their market appeal by signaling to potential tenants that the property is eco-friendly and energy-efficient. This article explores the benefits of achieving green certifications and the steps needed to obtain LEED or Energy Star certification for multifamily properties.

The Importance of Green Certifications

Achieving green building certifications such as LEED or Energy Star demonstrates a commitment to sustainability and environmental responsibility. These certifications validate that a property meets specific environmental performance standards, which can offer numerous advantages:

1. Reduced Environmental Impact
   By adhering to green building standards, property owners can reduce energy consumption, minimize waste, and conserve water, significantly lowering the environmental footprint of the building.
2. Cost Savings
   Energy-efficient systems, materials, and practices not only help the environment but also lead to lower utility bills. Multifamily buildings with green certifications typically experience reduced energy and water usage, resulting in long-term savings for both property owners and tenants.
3. Increased Market Appeal
   As tenants become more environmentally conscious, properties with green certifications are seen as more attractive. This market appeal can lead to higher occupancy rates, the ability to charge premium rents, and a stronger competitive position.
4. Enhanced Property Value
   Certified green buildings often have a higher resale value due to their sustainable features and reduced operational costs. This certification can be a strong differentiator when selling or refinancing the property.

LEED Certification for Multifamily Buildings

LEED is one of the most widely recognized green building certifications worldwide. It provides a framework for healthy, highly efficient, and cost-saving green buildings. LEED certification evaluates a property’s design, construction, operations, and maintenance across various categories, including water efficiency, energy use, and indoor environmental quality.

1. Steps to Achieve LEED Certification
   To achieve LEED certification for a multifamily building, property owners must follow these steps:
   • Choose a LEED Rating System: Depending on the size and type of building, property owners can select from different LEED rating systems, including LEED for New Construction, LEED for Existing Buildings, and LEED for Homes.
   • Meet the Prerequisites: LEED certification requires the property to meet certain prerequisites, such as implementing water-efficient landscaping, using energy-efficient HVAC systems, and ensuring proper waste management.
   • Earn Points: The LEED rating system awards points for incorporating sustainable design and operational strategies. The more points earned, the higher the certification level (Certified, Silver, Gold, or Platinum). Points are awarded for energy-efficient lighting, use of renewable energy, materials with low environmental impact, and indoor air quality.
   • Submit for Certification: After the building’s construction or retrofit is complete, the property owner submits documentation to the Green Building Certification Institute (GBCI) for review and certification.
     
     
2. Benefits of LEED Certification
   LEED-certified multifamily buildings are highly attractive to environmentally conscious tenants. These properties offer enhanced indoor air quality, energy savings, and a lower carbon footprint. In addition, LEED certification improves the building’s public image and can lead to tax incentives and lower insurance premiums.

Energy Star Certification for Multifamily Buildings

Energy Star certification is another highly regarded designation for buildings that meet strict energy efficiency guidelines set by the Environmental Protection Agency (EPA). Energy Star-certified multifamily buildings use 35% less energy on average than standard buildings, making them more cost-effective and environmentally friendly.

1. Steps to Achieve Energy Star Certification
   To earn Energy Star certification, property owners need to follow these steps:
   • Benchmark Energy Usage: Use the EPA’s Portfolio Manager tool to benchmark the building’s energy usage against similar properties. This will provide an Energy Star score between 1 and 100.
   • Improve Energy Efficiency: If the building’s score is below 75, property owners must implement energy-efficient improvements, such as upgrading HVAC systems, installing energy-efficient windows, or adding insulation to reduce energy consumption.
   • Apply for Certification: Once the building achieves an Energy Star score of 75 or higher, property owners can apply for Energy Star certification. The building must be verified by a licensed professional to confirm energy efficiency and performance.
     
     
2. Benefits of Energy Star Certification
   Energy Star certification is a strong signal of energy efficiency and environmental stewardship. Certified buildings not only use less energy but also reduce greenhouse gas emissions. Additionally, Energy Star buildings tend to attract tenants seeking eco-friendly living spaces and often enjoy lower operating costs due to energy savings.

Green Building Standards: Enhancing Sustainability and Market Appeal

Achieving green certifications like LEED or Energy Star provides Rental Communities  with significant advantages in today’s competitive market. These certifications enhance sustainability by promoting energy efficiency, reducing resource consumption, and improving indoor environmental quality. In turn, green-certified properties stand out to prospective tenants, increase in value, and contribute to long-term cost savings.

By prioritizing green building standards, property owners can future-proof their investments, ensure compliance with evolving regulations, and appeal to a growing market of eco-conscious renters. Whether retrofitting existing properties or designing new developments, incorporating sustainable practices and obtaining green certifications is a strategic move that benefits both the environment and the bottom line.