In the ever-evolving commercial real estate industry, few programs have reshaped operations as profoundly as ENERGY STAR. Balancing tenant expectations, sustainability goals, and financial performance, ENERGY STAR has stood the test of time as a data-driven framework for operational excellence. More than a sticker on the window or a plaque on the wall, ENERGY STAR represents a proven management approach that delivers measurable environmental and economic value.

ENERGY STAR: By the Numbers

Since its inception in 1992, more than 43,000 commercial buildings, representing over 6.5 billion square feet, have earned the ENERGY STAR certification. Of these, nearly 9,000 buildings and 2 billion square feet are commercial office properties.

The impact is significant: on average, an ENERGY STAR certified building uses 35% less energy than comparable buildings and reduces operating costs by approximately $0.54 per square foot. Financially, the certification carries real market value studies show that ENERGY STAR certified buildings can command rental premiums of 3%–16% over non-certified peers.

ENERGY STAR: The Program

Administered by the U.S. Environmental Protection Agency (EPA), the ENERGY STAR for Buildings program provides a standardized framework for benchmarking and improving building energy performance. Today, more than 40% of all U.S. commercial floor space is benchmarked in ENERGY STAR Portfolio Manager, underscoring its adoption across diverse asset types from corporate campuses to mixed-use towers.

Using metrics normalized for climate and building type, ENERGY STAR enables owners and operators to measure performance both internally and against a national peer group. This transparency promotes competition, accountability, and targeted investment in upgrades that lower energy consumption and carbon emissions.

Buildings earning a score of 75 or higher rank among the top 25% of performers nationwide, a distinction that carries weight in lease negotiations, investor communications, and sustainability disclosures. On average, certified buildings consume 35% less energy and emit 35% fewer greenhouse gases than typical buildings.

Simply put, ENERGY STAR bridges the gap between sustainability and financial performance creating a shared language that aligns environmental stewardship with economic success.

ENERGY STAR Leadership in Action

A 20-story, 400,000-square-foot building—a 1990s-era office building in the Washington, D.C. metro area—faced rising operating expenses and growing tenant demand for sustainable spaces. Using ENERGY STAR Portfolio Manager, ownership established a baseline ENERGY STAR score of 52, signaling below-average performance.

With the help of benchmarking insights and a targeted energy audit, the team identified key inefficiencies in lighting, HVAC controls, and building operations.

Over two years, the building invested $650,000 in an improvement plan focused on the following:

• Replaced fluorescent lighting with LEDs and motion sensors
• Installed variable frequency drives (VFDs) on air-handling units and pumps
• Upgraded the building automation system (BAS) for improved scheduling and control
• Conducted envelope sealing and insulation repairs
• Trained staff on continuous commissioning and energy best practices

The Results

The building’s ENERGY STAR score rose improved from 52 to 85. Energy use intensity dropped from 65 to 45 kBtu per square foot, reflecting a 30% reduction in consumption. Utility costs decreased from $1.85 to $1.35 per square foot, resulting in approximately $200,000 in annual savings and a simple payback period of just 3.3 years. These achievements placed the asset among the top 15% of office buildings nationwide for energy performance.

In addition to the financial impacts, the operational changes increased tenant satisfaction as hot/cold complaints were reduced, the building’s market value increased. Leasing activity increased as ownership highlighted the improved ENERGY STAR score in leasing materials and sustainability reports, demonstrating both environmental and financial performance gains.

In conclusion, the success of ENERGY STAR in the commercial real estate sector demonstrates that sustainability and profitability are not mutually exclusive—they are mutually reinforcing. By providing a clear, data-driven framework for benchmarking, improvement, and recognition, ENERGY STAR has enabled owners and operators to transform energy efficiency into a strategic advantage. As evidenced by the case study and thousands of similar projects nationwide, the program delivers quantifiable benefits in energy savings, operating costs, tenant satisfaction, and asset value. In an era where investors, tenants, and regulators increasingly demand transparency and performance, ENERGY STAR remains a cornerstone of smart, sustainable building management—proving that better buildings create stronger portfolios.

Thank you to our ENERGY STAR Month sponsor Baker Engineering.

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