ENERGY STAR at a Turning Point

September 28, 2026 | By: CRE Insight Journal
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For more than 30 years, ENERGY STAR has provided a common standard for evaluating and improving energy efficiency across the U.S. commercial building sector. In commercial real estate, its best-known tool is ENERGY STAR Portfolio Manager, an online platform that building owners and managers use to benchmark energy consumption, track performance and document improvements. The program is now entering a transition. In March 2026, the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE) agreed to transfer ENERGY STAR’s leadership and management to DOE. On Aug. 28, the agencies announced a plan outlining how the transition will take place, with the full transfer of the program, including its IT systems and databases, expected to be complete by July 2027. 

For commercial real estate professionals, the transition is important because ENERGY STAR is more than a well-known label. Portfolio Manager has become a core tool for thousands of buildings to track energy performance and comply with benchmarking and disclosure requirements. EPA reports that more than 330,000 commercial buildings, representing nearly 25% of U.S. commercial floor space, have used Portfolio Manager for energy and resource benchmarking. The platform has assessed nearly 35 billion square feet of commercial space, and seven states and 48 local governments use it as the basis for energy benchmarking and transparency policies. As these programs depend on a standardized approach to measuring building performance, maintaining the continuity and reliability of Portfolio Manager will be important during the transition. 

Measuring Performance Before Making Changes

For building owners and managers, ENERGY STAR’s core value starts with benchmarking. Portfolio Manager allows users to compare a building’s current energy performance with its past performance, other buildings in their portfolio, or, for qualifying property types, similar buildings nationwide. The platform accounts for weather, operational factors, and other conditions when calculating the 1–100 ENERGY STAR score. A score of 50 reflects median performance among comparable buildings, while a score of 75 or higher may make a building eligible for ENERGY STAR certification. 

This comparison can flag buildings for further investigation before capital is committed, such as properties using significantly more energy than similar buildings. It can prompt a closer look at equipment, controls, operating schedules, and other factors affecting energy use. 

EPA research suggests that consistent benchmarking can yield measurable improvements. An ENERGY STAR analysis of Portfolio Manager data found that buildings that consistently benchmark their energy use saved an average of 2.4% annually. The agency also conducted a three-year study of about 35,000 buildings to track changes in energy consumption over time. 

Certification offers another way to recognize performance. According to the EPA, ENERGY STAR certified buildings use an average of 35% less energy and produce 35% fewer emissions than similar buildings. Since 1999, tens of thousands of buildings and plants have earned the certification. The national registry now lists more than 46,000 certified properties, covering over 7 billion square feet. This total includes different property types and multiple certifications awarded over the years. 

The financial benefits also contribute to the program’s appeal in commercial real estate. ENERGY STAR cites independent studies on the links between certification and operating costs, rental rates, and asset value. Portfolio Manager also offers tools to compare potential savings and prioritize investments across a portfolio, connecting energy performance with broader property-management decisions. 

A Resource Beyond the ENERGY STAR Score

Portfolio Manager is one of the best-known ENERGY STAR tools for commercial real estate, but it isn’t the only one. The platform lets users track energy, water, waste, materials and greenhouse gas emissions, giving them a broader view of resource use across a portfolio. The EPA also offers Portfolio Manager Data Explorer, which provides aggregated data from more than 150,000 U.S. commercial and multifamily properties. Building owners and managers can use it to compare energy use and ENERGY STAR scores across property types, sizes, locations and other factors. 

The agency also offers resources to turn measurement into action. ENERGY STAR’s commercial buildings resources cover energy management, lighting, HVAC, building controls, and other efficiency measures. Its Energy Treasure Hunt approach guides facility teams through a structured property walk-through to identify operational opportunities. ENERGY STAR reports that hundreds of organizations have used Energy Treasure Hunts to cut facility energy use by 15% or more. 

For new construction and major projects, Target Finder helps design teams estimate a proposed building’s ENERGY STAR score using relevant data and compare it with national building-performance benchmarks. This allows teams to set an energy-performance goal early, while Portfolio Manager can track performance once the building is operational. 

What the Move to DOE Means

Under the March 3, 2026, Memorandum of Agreement, DOE became the lead federal agency for ENERGY STAR. EPA and DOE began transferring program leadership, partnership agreements, trademarks, IT systems, and databases. The Aug. 28 transition plan outlines the process, and the full transfer is expected by July 2027. 

Building owners and managers should note that the transition does not mean Portfolio Manager is being discontinued. EPA and DOE have confirmed that ENERGY STAR resources, including Portfolio Manager and its help desk, will remain available throughout the transition. Maintaining continuity is important because Portfolio Manager is integrated into current building-performance practices and government initiatives. Although a change in federal administration does not automatically change state or local benchmarking rules, owners and managers who rely on the platform will need continued access to historical data, benchmarking features, and reporting functions. 

The transition plan focuses on moving program operations and infrastructure to DOE. The program’s longer-term direction will become clearer as that work progresses, but the plan does not introduce new commercial building performance standards. For now, building owners and managers can continue benchmarking, keep building and utility data accurate, and monitor official ENERGY STAR communications as the program’s systems and responsibilities move to DOE. 

As ENERGY STAR enters this next phase, its role in commercial real estate remains closely linked to the industry’s need for consistent building performance information. For owners and managers, Portfolio Manager continues to provide a resource for establishing baselines, tracking performance, and meeting benchmarking requirements as the federal transition moves forward.

 

Thank you to our ENERGY STAR Month sponsor, Georgia Power

Learn More about Georgia Power’s Commercial Energy Efficiency Program here.

 

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