Home › Real Estate

By Sophia Martinez•Last Updated August 31, 2025

Unlocking Value: How Green Building Certifications Transform Real Estate

Photo by Danist Soh on Unsplash

Introduction

As sustainability reshapes real estate, green building certifications have become essential tools for developers, owners, and investors seeking to future-proof properties. These certifications serve as trusted indicators of a building’s environmental performance, offering advantages such as increased asset value, operational savings, and access to incentive programs. This article explores the major certification systems, their benefits, and concrete steps for property stakeholders to participate in the green building movement.

What Are Green Building Certifications?

Green building certifications are formal assessments that rate how well a building or project meets defined sustainability standards. These standards may cover energy efficiency, water conservation, air quality, materials sourcing, and waste management. Certification systems vary globally and regionally, and may apply to new construction, renovations, or existing buildings. Examples include LEED, BREEAM, Green Globes, and WELL Building Standard [1] .

Most systems use a points-based scale: projects earn credits across various sustainability categories, and higher scores yield higher certification levels. For example, LEED has four tiers: Certified, Silver, Gold, and Platinum. Certification is typically voluntary, but some local governments require it for public projects or offer incentives for compliance [1] .

Major Green Building Certification Systems

The choice of certification depends on project goals, location, and building type. Here are some of the most widely recognized standards:

LEED (Leadership in Energy and Environmental Design)

LEED, developed by the U.S. Green Building Council, is the most prevalent system in the United States and internationally recognized. It assesses buildings on criteria such as energy use, water efficiency, materials, indoor environmental quality, and innovation. LEED certification is achieved by compiling detailed documentation and submitting it through the LEED Online portal for third-party review by the Green Building Certification Institute [4] . LEED v4.1, the latest version, emphasizes carbon reduction and performance tracking.

BREEAM (Building Research Establishment Environmental Assessment Method)

BREEAM originated in the UK and is one of the most established environmental assessment methods globally. It evaluates the sustainability of building projects across their entire life cycle, from new construction to refurbishment. BREEAM is gaining traction in the U.S., particularly for projects seeking global recognition [5] .

Green Globes

Green Globes, managed by the Green Building Initiative, is a flexible system suitable for both new and existing commercial buildings, including multifamily properties. It uses a 1,000-point scale across categories such as energy, water, site, materials, and indoor environment. A distinguishing feature is the requirement for third-party onsite assessment to verify self-reported claims [4] .

WELL Building Standard and Fitwel

The WELL Building Standard focuses on occupants’ health and well-being, assessing air, water, nourishment, light, fitness, comfort, and mind. Fitwel is another health-first certification, emphasizing strategies to improve occupant wellness. Both are increasingly used in conjunction with other green certifications [2] .

Other Recognized Programs

Additional systems include ENERGY STAR (for energy efficiency), Living Building Challenge (for regenerative design), and the BOMA 360 Performance Program (for commercial real estate operations) [5] . The choice of program should align with your project’s unique goals.

Benefits of Green Building Certifications

Securing a green certification offers measurable advantages for both owners and occupants:

Lower utility costs: Certified buildings typically use less energy and water, leading to reduced operating expenses for both owners and tenants [3] .
Higher asset and rental value: Studies indicate green-certified buildings can achieve higher sales prices and rental rates, thanks to increased demand from eco-conscious tenants and investors [3] .
Improved occupant health and satisfaction: Enhanced air quality, lighting, and amenities support wellness and productivity [1] .
Access to financial incentives: Lenders like Fannie Mae offer preferential loan pricing for certified multifamily properties, and some jurisdictions provide tax breaks or expedited permitting [3] .
Stronger marketability: Certification signals a property’s commitment to sustainability, setting it apart in a crowded market [5] .
Enhanced ESG scores: Certifications contribute to higher scores in programs like GRESB, increasing a portfolio’s attractiveness to institutional investors [2] .

How to Obtain Green Building Certification: Step-by-Step Guidance

The path to certification involves several key steps, each with its own challenges and solutions:

1. Choose the Right Certification System

Evaluate your project’s goals, budget, and location to determine the most appropriate certification. Consider LEED for broad recognition, WELL for health focus, or Green Globes for flexibility. Review the requirements on each program’s official website or by contacting their support teams for guidance.

2. Assemble Your Project Team

Successful certification requires coordination among architects, engineers, contractors, and sustainability consultants. Seek professionals with a track record in green projects and verify their credentials. You may find qualified experts by searching industry associations or requesting references from certification bodies.

3. Register the Project

Registration is typically done through the certification system’s online portal. For example, LEED registration is completed at LEED Online, while Green Globes projects are registered via the Green Building Initiative’s site. You should follow the official registration instructions provided on each program’s platform.

4. Integrate Sustainable Practices

During design and construction, incorporate strategies that target the chosen certification’s criteria. This may involve selecting energy-efficient equipment, installing water-saving fixtures, sourcing recycled materials, and optimizing natural lighting. Track all relevant data and costs throughout the process.

5. Document and Submit Evidence

Thorough documentation is required to demonstrate compliance. This includes drawings, product specifications, utility data, and photographs. Submit all materials via the certification body’s portal and respond promptly to any review comments or requests for clarification.

6. Undergo Third-Party Review

An independent review board will assess your submission. Some systems, like Green Globes, include onsite assessments, while others rely solely on documentation. Address any deficiencies identified during the review to maximize your score.

7. Achieve Certification and Promote Success

Once awarded, leverage your certification in marketing materials, lease negotiations, and investor communications. Certification can also support applications for financial incentives and loan programs.

Accessing Incentives and Financial Benefits

Some lenders, such as Fannie Mae, offer preferential loan terms for green-certified multifamily properties. To take advantage, ensure your certification is recognized by the lender and meets any required benchmarks. For details on eligibility, review Fannie Mae’s current list of recognized certifications or contact their loan officers directly [3] .

Local governments may also offer tax incentives, density bonuses, or expedited permitting for certified projects. To learn more, contact your municipal planning department or search for “green building incentives” along with your city or state name for current programs.

Overcoming Challenges and Exploring Alternatives

Common barriers include upfront costs, administrative complexity, and lack of awareness. Solutions include:

Engaging in early planning to integrate sustainability from the outset
Seeking grants or rebates from utilities or government agencies
Collaborating with experienced consultants to streamline documentation
Piloting smaller projects to build internal expertise before pursuing portfolio-wide certifications

If full certification is not feasible, consider ENERGY STAR benchmarking or partial certifications that focus on specific aspects, such as indoor air quality or water efficiency.

Getting Started: Practical Steps

To begin your green certification journey:

Identify your primary objectives-cost savings, wellness, marketability, compliance, or ESG performance
Research certification systems by visiting their official websites (e.g., USGBC for LEED, Green Building Initiative for Green Globes)
Request case studies or references from local projects
Consult with a sustainability expert or architect familiar with green certifications
Consider reaching out to your lender about incentives for green-certified properties

If you need help, you can search for “green building certification consultants” along with your city or state, or contact local chapters of professional organizations such as the U.S. Green Building Council or Building Owners and Managers Association.