Across the country, property owners and managers are navigating a changing landscape — one shaped by evolving regulations, environmental challenges, and shifting market expectations. From carbon reduction targets to water conservation incentives, cities are rethinking how buildings are designed and operated to promote long-term sustainability.

This transformation comes with both challenges and opportunities. New requirements may bring added complexity. Yet there’s also an upside: property managers who embrace sustainable practices can capitalize on benefits like lower operating costs, more loyal tenants, and a stronger competitive edge. As cities set their sights on greener futures, property owners who adapt are positioning themselves not just for compliance, but for long-term success. 

Key Trends Driving Sustainability in Cities 

Cities around the world are setting ambitious net-zero emissions targets, placing property owners at the center of these efforts. For example, New York, Boston, and Denver have all set official timelines to drastically cut or offset their carbon footprints. These pledges often translate into more robust building regulations and closer scrutiny of energy performance.  

Coupled with these commitments are transparency laws, such as Chicago’s Energy Benchmarking ordinance, that require large buildings to disclose annual energy usage. Public visibility of consumption data encourages owners to boost efficiency and avoid being flagged as high-emission properties. 

In parallel, many municipalities are integrating green infrastructure into urban planning. Initiatives like rooftop gardens, rainwater capture systems, and water-efficient landscaping not only help cities manage stormwater and improve air quality but also create healthier, more appealing environments for occupants. Municipalities like Austin are even offering incentives for installing water-efficient systems and green spaces in commercial buildings. These features can boost sustainability credentials and create attractive amenities for tenants. 

Spotlight on Cities Leading the Way 

Before we explore individual policies and programs, it’s worth noting that many of these cities share similar goals: reducing emissions, cutting energy waste, and improving quality of life. However, each location puts its own spin on sustainable development, often guided by local priorities, resources, and regulatory frameworks. 

New York City 

Local Law 97 requires buildings over 25,000 square feet to reduce their carbon emissions. The law took effect in 2024 and will ramp up to a 40% emissions reduction by 2030 (from a 2005 baseline). Failure to meet these goals will result in fines of up to $268 for every metric ton of CO₂e above the cap.  

This will be tracked by a required submittal of annual emissions data, making it critical for building owners to invest in energy audits, retrofits, and continuous performance monitoring. New York City’s ultimate goal is an 80% emissions cut by 2050, placing it among the country's most stringent and closely watched regulations. 

Boston 

Through its Building Emissions Reduction and Disclosure Ordinance (BERDO 2.0), Boston targets carbon neutrality by 2050 and imposes progressive emissions caps on multi-unit residential buildings and commercial properties over 20,000 square feet. By 2030, these properties must demonstrate meaningful cuts in emissions, with enforcement ramping up in subsequent compliance periods. The city also provides incentives for electrification and renewable energy installations, making it financially attractive for building owners to improve efficiency and lower emissions. 

Denver 

Denver’s Building Performance Ordinance mandates energy benchmarking and performance improvements for commercial and multifamily buildings of 5,000 square feet or more. Owners of buildings over 25,000 square feet must submit annual energy benchmark reports and meet energy use intensity requirements. These buildings must reduce their emissions by 30% by 2030. 

Buildings under 25,000 square feet don’t have to submit an annual report but must complete prescriptive upgrades, like LED lighting or using renewable energy. This city’s overarching strategy is for all new buildings to be net-zero by 2030, and the state will be completely net-zero by 2050.

Charlotte 

Charlotte is advancing sustainable energy adoption and energy-efficient development through forward-thinking policies that encourage commercial building owners to reduce energy consumption and integrate renewables. 

One standout initiative is Charlotte’s Energy-as-a-Service (EaaS) model, a strategy that allows commercial property owners to upgrade energy systems without upfront capital investment. This approach helps businesses install high-efficiency HVAC, lighting, and solar technologies while maintaining financial flexibility. By leveraging public-private partnerships and innovative funding mechanisms, Charlotte is helping commercial properties to adopt more efficient, cost-saving energy solutions. 

Other Cities to Watch 

We've already mentioned Chicago's Energy Rating System and Austin's rebates and incentives for water-efficient systems and green infrastructure, but another city to keep an eye on is San Francisco. They require all new buildings to be fully electrified and are enforcing progressive solar and green roof mandates for new construction.

How Sustainable Policies Affect Building Owners 

With ambitious carbon reduction targets and mandatory disclosure laws taking effect in some cities, building owners face a transformative period filled with both risks and opportunities. Below, we unpack how these policies will shape building development and management in the years to come. 

Financial Implications 

Regulations like Local Law 97 in NYC impose steep fines for buildings exceeding carbon thresholds by the end of the decade. While energy efficiency retrofits can have a significant upfront cost, they are necessary to ensure compliance and avoid fines. Starting to make improvements in the near term allows owners to spread out these costs and avoid last-minute budget surprises. 

Opportunities for Cost Savings 

Energy-efficient upgrades can reduce utility bills and enhance a property’s market value. Reducing energy load — be it from lighting, HVAC, hot water heating, or process load — will inevitably save money. Addressing older systems by replacing or repairing them can also reduce the risk of system failures. For those looking for more comprehensive approaches to building operations, the pursuit of green building certifications like LEED can further boost cost savings — improving asset value. For example, LEED-certified buildings have a 20% higher per foot sale price than their peers while producing 34% less emissions.

Additionally, funding mechanisms like PACE can help lower the cost of capital needed to make energy efficiency upgrades, turning a regulatory burden into a financial advantage. 

Shift Toward Renewable Energy 

The vast majority of emissions for most buildings come from offsite generation of electricity. One of the most direct and impactful ways to target this is with renewable energy. Onsite solar and wind energy is becoming much more affordable for building owners and commercial buildings now see payback times as low as three years. However, if developers are still hesitant to invest in onsite renewables, they can often purchase green power from their local utilities as an interim solution. 

Tenant Expectations 

Today’s renters and commercial tenants increasingly prioritize energy-efficient spaces. Offering features like efficient HVAC, green spaces, and electric vehicle charging aren’t just sustainability wins — they also drive tenant retention and rental value. This is highlighted by LEED-certified buildings that command 11% higher rents and 4% higher occupancy rates than non-green buildings. 

Strategies for Property Managers to Adapt 

With sustainability regulations and emissions standards popular in many states — and enticing incentives like rebates and increased property value — investing in sustainable upgrades is a no-brainer for developers. However, this can often seem like a daunting process, particularly to those new to sustainable development. Luckily, we’ve put together some of the top methods to help you on your journey.

1. Energy Audits and Benchmarking

Regular energy audits pinpoint inefficiencies like outdated HVAC systems or a poor building envelope that undermines performance. This can help building owners understand their baseline energy use and set high-priority areas to tackle in their sustainability strategy. Additionally, some cities are starting to require yearly benchmarking, so using automated energy management tools can be a great way to ensure compliance and track progress continually.

2. Sustainable Retrofits and Upgrades 

Common low-budget retrofit options include LED lighting, motion sensors, heat pumps, and Prop Tech solutions. More expensive, yet often more impactful solutions include developing onsite solar installations or upgrading the building envelope.  While these larger-scale improvements can have high upfront costs, they can be longer-term targets that are budgeted for with a capital improvement plan and developed when government incentives are available. 

3. Green Certifications

Pursuing certifications like LEED, ENERGY STAR, or WELL can set a property apart. They provide a defined standard on what constitutes different levels of sustainability, so consumers know sustainability claims aren’t greenwashing. They are a great risk management tool. For owners and developers, they also provide a defined sustainability goal to work towards and a framework to achieve it. While certifications may require initial investment, they come with a host of benefits that offset the costs over time.

4. Partnering with Experts  

Navigating local rules can be complex. Partnering with sustainability consultants like Emerald Built Environments, a Crete United Company, can help navigate these uncertainties and provide a clear compliance and performance optimization pathway. From conducting audits to suggesting next-generation technologies, expert guidance ensures both immediate regulatory goals and long-term business objectives are met. 

Leading the Way to a Greener Tomorrow 

Sustainable city initiatives are reshaping the property management landscape. Policies like Local Law 97 in New York or BERDO 2.0 in Boston are actively shaping the future of sustainable property management. While adaptation may involve upfront costs, proactive measures can yield significant returns in operating efficiency, tenant satisfaction, and overall market positioning. 

At Emerald Built Environments, we view these shifts as opportunities for innovation and resilience. Through strategic plans and data-driven insights, building owners can stay ahead of evolving standards and create buildings that are both sustainable and future-ready.