How Affordable Green Building Certifications Are Evolving to Increase Sustainable Performance and Create Long-Term Value at the Portfolio Level

ALEX HEROLD | DIRECTOR OF GREEN BUILDING CERTIFICATIONS

This feature was written by Alex Herold, who serves as the Director of Green Building Certifications at RE Tech Advisors, a Blackstone preferred provider of consulting services to enhance building performance and investment transparency. Alex leads certification strategies for existing buildings nationwide, specializing in LEED O+M, Fitwel, and WELL, with quality scores that place him among the top 1% of all third-party reviewers. He partners closely with property teams to integrate sustainable practices that support both operational performance and long-term asset value. For questions on Green Building Certifications, please reach out to Alex.Herold@RETechAdvisors.com.

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Green Building Certifications (GBCs) are crucial in driving sustainability and mitigating climate change. These certifications provide a structured framework to assess the environmental performance of buildings, supporting the creation of healthier, more resilient spaces where people live, work, and thrive.  

However, despite their importance, some GBCs have faced criticism over high fees and limited value, especially for existing properties. In response, many certification bodies are offering more affordable, scalable options, while also updating their standards to address growing concerns about climate change and the need for rapid decarbonization. GRESB has recently revised its criteria to ensure only high-quality certification schemes are included under its standards, further enhancing the value of these certifications.  
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IREM CSP Volume Program

Background

• Scoring Sections: Energy, Water, Health, Recycling, Purchasing

• Requirements: Active sustainability program across the portfolio and a minimum of ten properties

• Certification Validity: Three Years

IREM launched its Certified Sustainable Property (CSP) program in 2015 as a cost-effective alternative to other certifications, particularly for property types that are often underserved, including multifamily, retail, medical office, senior housing, and industrial. This certification is particularly suited for properties that demonstrate year-over-year reductions in energy and water consumption or have ENERGY STAR® certification  

Update

The 2025 version of IREM CSP introduces more stringent requirements to align with GRESB criteria:  

• Higher performance thresholds for energy and water use reductions

• Increased minimum point requirements for certification

• A required three-year improvement plan for recertifications, promoting continuous performance improvements that will ultimately enhance the asset value over time.  

Key Takeaways

The IREM CSP Volume Program offers significant benefits for property owners and managers looking to enhance energy efficiency while improving asset value. By implementing sustainability programs, properties can experience better performance, increased resale value, and greater tenant satisfaction. The program helps meet consumer demand for environmentally conscious spaces, as tenants increasingly prioritize green certifications. Additionally, reducing energy and water consumption year-over-year can lead to cost savings for tenants, providing a competitive edge for properties in attracting and retaining residents.  
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Fitwel Scale Certification (FSP)

Background

• Scoring Sections: Environmental Quality, Resilience, Stakeholder Engagement, Equity, Active Living, Biophilic Design

• Requirements: At least one strategy in two of six Targeted Outcome categories

• Certification Validity: One year (requires annual recertification)

Launched in March 2024, Fitwel Scale Certification (FSP) offers a portfolio-level certification that helps organizations benchmark health and well-being metrics across their properties. It’s designed to improve tenant health, boost asset value, and demonstrate an organization’s commitment to wellness.  

Update

The June 2024 release of Fitwel v3 introduced more rigorous standards, meaning many properties previously eligible for Fitwel Built may no longer qualify. Fitwel FSP provides a more flexible certification option for properties unable to meet these heightened requirements, enabling them to still demonstrate commitment to health and wellness on a broader scale.  

Key Takeaways

FSP offers significant benefits for property owners, including higher rental premiums and faster leasing as tenants increasingly prioritize health-conscious spaces. Certified buildings also see a positive correlation with Net Promoter Score (NPS), meaning tenants are more likely to recommend these properties and stay longer, improving tenant retention and overall property performance. Additionally, Fitwel FSP serves as a pathway to Fitwel Built certification, providing initial recognition of health-conscious practices and laying the foundation for further improvements toward more comprehensive standards.  
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Green Globes Journey to Net Zero (JNZ)

Background

• Scoring Sections: Energy

• Requirements: Reduce emissions by 50% for Recognized Level, 100% for Certified Level

• Certification Validity: Three years

Launched in the U.S. in 2005, Green Globes has positioned itself as a more affordable alternative to the traditional GBCs like LEED. It is recognized for its adaptability to different space types and lack of prerequisites, making it a versatile option for various property types. Green Globes has been particularly effective in certifying data centers, and it is recognized by the General Services Administration (GSA) as an acceptable certification for federal leasing activities.

Update

In January 2025, the JNZ certification was officially launched following a successful pilot phase. This certification focuses on supporting commercial real estate owners in their decarbonization efforts, providing a cost-effective and user-friendly pathway for properties to begin their journey toward achieving net-zero emissions. JNZ helps owners reduce carbon emissions gradually, allowing for a phased approach to decarbonization.  

Key Takeaways

The Green Globes JNZ certification offers significant advantages for real estate owners aiming to meet net-zero emissions goals. It aligns with GSA leasing requirements, which mandate that leased spaces over 25,000 square feet must have a net-zero certification, making it especially beneficial for federal leasing opportunities. JNZ’s phased approach to decarbonization provides flexibility for property owners, allowing them to make sustainable progress over time while avoiding overwhelming upfront costs. This certification provides an accessible pathway for owners to begin their decarbonization journey, with clear milestones that demonstrate a commitment to sustainability.  
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The RE Tech Advantage

Affordable and scalable green building certifications offer real estate owners valuable opportunities to improve energy efficiency, tenant satisfaction, and property performance. These programs help reduce operating costs, increase asset value, and align with GRESB standards, all while meeting growing demand for sustainable and healthy spaces. Whether reducing carbon emissions or boosting leasing velocity, these certifications provide a clear path to long-term sustainability.  

At RE Tech, we help clients navigate the complexities of green building certifications, ensuring that each choice aligns with their sustainability goals and business objectives. With expertise gained from assisting with certifying over 400 million square feet of real estate, we offer tailored strategies that maximize both cost savings and tenant satisfaction. Our team helps unlock measurable, long-term value for your properties, whether upgrading existing certifications or starting fresh.  

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