Sustainable building certifications: A strategic advantage for modern property managers

Did you know certified green buildings have, on average, 10.1 percent lower operating expenses, and 19.7 percent higher rent than their conventional counterparts? For property managers in Build-to-Rent (BTR), multifamily housing, and Purpose-Built Student Accommodation (PBSA), investing in certified green buildings isn’t just about sustainability—it’s a strategic move.

With sustainable building certifications like LEED, LBC, WELL, and Fitwel, you can turn your properties into high-performance assets that prioritize energy efficiency, indoor air quality, water conservation, and waste reduction, all while cutting costs and increasing tenant satisfaction. But achieving these certifications requires more than just eco-friendly materials—it demands a data-driven approach to building performance.

This guide looks at why sustainable certifications are a must for property managers, the key benefits of certifying your buildings, and how smart property management solutions can help you meet the strict environmental and operational standards required.

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What are sustainable building certifications? (And why should you care?)

Sustainable building certifications are frameworks that assess a property’s environmental and social impact, focusing on energy efficiency, indoor air quality, water conservation, and occupant health. They’re not just for new constructions, existing buildings can earn certifications like LEED for Operations and Maintenance or BREEAM In-Use by retrofitting systems and adopting sustainable practices.

Why does this matter for property managers?

• Occupancy rates: certified buildings typically experience lower vacancy rates, leading to higher rental income.
• Regulatory trends: Cities like New York and Paris are implementing carbon reduction policies, making green building standards essential for compliance.
• Financial incentives: LEED-certified buildings report 20% lower maintenance costs.
• Healthier indoor environments: Certifications emphasize better air quality, optimal lighting, and noise reduction, creating comfortable, high-quality living spaces that improve tenant satisfaction.
• Increased property value: Real estate developments with sustainability credentials often command premium valuations, making them more attractive to investors.

By investing in sustainable building certifications, you’re not just meeting compliance standards—you’re future-proofing your properties, improving tenant retention, and strengthening your market position.

Top 3 examples of sustainable building certifications in the US

LEED (Leadership in Energy and Environmental Design)

Developed by the U.S. Green Building Council (USGBC), LEED is one of the most widely recognized green building certification systems globally. It provides a comprehensive framework for creating environmentally responsible structures, applicable to both new construction and existing buildings. LEED's flexibility allows it to cover a wide range of project types, from single-family homes to large-scale commercial buildings.

LEED uses a 100-point scale for rating projects across various categories, with certification levels ranging from Certified to Platinum. 

Key categories and criteria:

• Integrative process: Encourages early analysis of the interrelationships among systems.
• Location and transportation: Rewards sites with good connectivity and access to public transit.
• Sustainable sites: Focuses on ecosystem protection, stormwater management, and heat island reduction.
• Water efficiency: Promotes a reduction in water use and innovative technologies for wastewater management.
• Energy and atmosphere: Emphasizes optimized energy performance and use of renewable energy.
• Materials and resources: Encourages use of sustainable and locally sourced materials.
• Indoor environmental quality: Focuses on air quality, thermal comfort, and access to daylight.
• Innovation and design: Recognizes exceptional performance and innovative solutions.
• Regional priorities: Addresses geographically specific environmental priorities.

WELL Building Standard

The WELL Building Standard focuses on enhancing human health and well-being within built environments. It addresses factors that directly impact occupants' physical and mental health, making it particularly relevant for residential and office spaces.
WELL-certified properties report higher lease-up rates, especially in luxury BTR and high-end multifamily developments.

The seven concepts:

• Air: Achieving indoor air quality through VOC removal, prevention and purification.
• Water: Promoting improved accessibility to high quality water. 
• Nourishment: Encouraging healthy eating habits.
• Light: Emphasizing appropriate light exposure for circadian rhythms.
• Fitness: Promoting building design technologies to encourage physical activity.
• Comfort: Ensuing an indoor environment that is distraction-free, productive and soothing.
• Mind: Including access to mental health support.

LBC (Living Building Challenge)

The Living Building Challenge has the most rigorous sustainability standards. Overseen by the International Living Future Institute, it offers certification for projects aiming to meet the most healthy and energy efficient benchmarks, achieving a net-zero environmental impact.
LBC-certified buildings often incorporate innovative features like on-site water treatment systems and urban agriculture, setting new benchmarks for sustainability standards.

Key criteria:

• Net positive energy and water: Requires buildings to generate more energy and water than they consume annually.
• Healthy materials: Prohibits use of materials containing chemicals of concern.
• Biophilic design: Promotes integration of nature into the built environment.
• Equity: Ensures fair access and human-scale projects. 
• Beauty and inspiration: Celebrates design that uplifts the human spirit and educates.

While LEED, LBC and WELL hold the spotlight, you can also consider specific programs like Fitwel (a building certification system that prioritizes occupant health and wellness through evidence-based design), or the National Green Building Standard (an ANSI-approved certification program specifically focused on residential buildings in the United States).

Certification process

1. Pre-assessment: Use tools like Energy Star’s Portfolio Manager to benchmark energy performance and identify gaps in your projects.
2. Documentation: Submit proof of sustainable practices, including:
   
   • Material specifications (e.g., recycled steel, FSC-certified wood).
   • Environmental assessment reports on biodiversity impact.
   • Energy Star ratings for appliances. 
3. Third-Party Verification: Organizations like the Building Research Establishment (for BREEAM), the International Living Future Institute (for LBC) or Green Building Initiative (for Green Globes) conduct rigorous on-site assessments.
4. Certification Earned: Properties receive a label (e.g., LEED Silver, Gold, or Platinum) based on rating thresholds.

Sustaining compliance: Why smart technology matters

Many property managers underestimate the effort required to maintain certification standards. For example, LEED-certified buildings must continuously monitor and optimize various parameters to retain their status, including indoor air quality, energy consumption, water usage, and occupant comfort. 

How smart technologies make a difference 

Integrated Building Management Systems (BMS)

• Centralize control of HVAC, lighting, and security systems
• Enable real-time monitoring and adjustment for optimal performance
• Facilitate data collection and reporting for certification requirements

Advanced Sensor Networks

• Monitor key environmental factors such as CO2 levels, particulate matter, and VOCs
• Track occupancy patterns and space utilization
• Minut's smart monitoring solutions provide real-time alerts for smoking, occupancy and humidity, ensuring compliance with indoor air quality standards

Energy Management Platforms

• Integrate with on-site renewable sources
• Provide detailed energy consumption analytics
• Automate demand response and load balancing to optimize energy usage

Water Management Technologies

• Implement smart meters for real-time consumption tracking
• Utilize AI-powered leak detection systems
• Automate greywater recycling processes to reduce water waste

Predictive Maintenance Systems

• Use machine learning algorithms to anticipate equipment failures
• Schedule proactive maintenance to prevent downtime and energy inefficiencies
• Extend the lifespan of building systems, reducing resource consumption

Building toward a sustainable future

With ESG investing surging and climate change accelerating, green building certifications are now essential for future-proofing real estate assets. Properties with LEED Platinum, BREEAM, or Energy Star certifications command higher values, attract stronger tenant demand, and reduce operational costs through energy-efficient design and passive strategies.

By integrating smart technologies, you can create healthier, more desirable spaces that meet and exceed global standards. Solutions like Minut's property insights platform help simplify compliance with WELL, LBC, and LEED, ensuring safer, high-performance environments.

Whether you manage a single property or a large portfolio, these certifications offer a clear path to cost savings, increased market value, and environmental stewardship.