Sustainability and energy efficiency are more than just goals — they're essential to creating long-lasting, high-performing buildings. As the demand for greener, healthier environments grows, building certifications play a pivotal role in ensuring projects meet the highest standards.
While LEED is a familiar certification name in the world of green building, there's a whole range of certifications that offer their own unique benefits. From operational savings to healthier environments, certifications like WELL, Living Building Challenge, and Fitwel expand the definition of sustainability with more focus on the impact of buildings on people. Whether you're an architect, engineer, or project owner, understanding these certifications' value can help you make more informed decisions on your next project. GreenGlobes has a different methodology for scoring and certifying that is attractive to some projects.
With this third blog in our "Top Questions" series, we're looking at some of the most common questions we at Emerald hear about green building certifications to help you navigate the world of certifications and unlock the full potential of your sustainable building efforts.
Make sure to check out our first two blogs in this series on starting your sustainability journey and working towards net zero.
Question 1: What Are the Financial Benefits of Green Building Certifications, and How Much Will It Cost?
Answer: It's nearly impossible to give an exact cost of the building certification process as each project varies based on factors like project size, scope, and certification level. However, common costs include consulting fees, registration and certification fees, and potentially added energy conservation measures or other specialty design choices that meet certification goals (i.e. adding EV chargers just for the certification).
That said, building certifications such as LEED, WELL, and Energy Star offer significant financial advantages, particularly in operational savings. Certified buildings tend to perform better in energy efficiency, have reduced maintenance costs, and use less water. For example, Energy Star-certified buildings typically reduce energy consumption by 35% compared to non-certified structures.
Ultimately, while building certifications involve upfront costs, these are typically outweighed by the long-term benefits. Certified buildings lower operational expenses and can command higher resale and rental values. For example, LEED-certified buildings see 11% higher rental rates and 21% higher resale values while reducing water usage by 11% and emissions by 34%, making certification both a financial and environmental win.
If articulating costs is a real concern for you and your project, our Gap Analysis process is a quick and easy way to assess what is needed to achieve certification and gives you a framework for understanding project-specific costs.
Question 2: How Can We Set LEED Objectives (Or Any Building Certification) When the Project Owner Doesn’t Know What They Want?
Answer: Setting a clear certification strategy often begins with an integrated design process involving all stakeholders and design professionals. This early collaboration between architects, engineers, sustainability experts, and project owners ensures sustainability is embedded from the start and fosters open team communication.
Furthermore, this allows all groups to give input on sustainability goals and develop a clear framework to meet both performance goals and certification criteria. This means addressing not only the big-ticket items like energy use and materials but also ensuring other details, like indoor air quality, are not overlooked.
Developing documents like the Owner's Project Requirements (OPR) and Basis of Design (BOD) is an essential part of this structured process. These documents provide a clear roadmap by outlining the owner's goals and technical solutions to achieve them.
With input from a commissioning agent, the OPR ensures that the owner's vision is translated into actionable technical goals, while the BOD lays out how those goals will be met. This helps streamline the certification process, reducing confusion, revisions, and costs while keeping the project on track to meet its sustainability objectives and certification goals.
Question 3: Are There Increased Costs for LEED (And Other Certifications)?
Answer: Yes, as discussed in Question 1, there are increased costs for green building certifications, but they are typically recouped over time. Beyond capital improvements like building onsite solar or incorporating more insulation and efficient windows, one of the main costs comes from the increased time and resources required for documentation and design.
The A/E/C team will be required to provide more detailed analysis and documentation to prove compliance with the certification's standards. Without this documentation, the certifying agency may not grant the certification or require additional verification, incurring additional costs and time delays.
That leads us to a common follow-up question: "How can we mitigate these costs?"
Early planning is key to cutting certification costs. Bringing sustainability experts on board early allows you to integrate sustainable strategies into the design from the outset. This approach ensures that initial designs incorporate more sustainability features, initial budgets reflect the actual project goals, and design goals, performance, and certification requirements are aligned. It truly makes the process more efficient and cost-effective.
Question 4: Can My Older Building or Leased Space Get Certified?
Answer: Yes, your older building and leased space can get certified.
Most rating systems have compliance paths for unique building types (schools, hospitals, residential, warehouses), leased spaces, or existing buildings. For example, LEED's Operations & Maintenance (O+M) certification highlights ongoing building performance, ensuring that systems remain efficient throughout the structure's life. Regular commissioning and audits tied to certifications help identify issues early, reducing long-term maintenance costs and preventing costly system failures. Other certifications like BREAAM, Fitwel, and WELL also provide flexibility based on building or space type.
Understanding which rating system applies to your project is a question your sustainability consultant can help answer. Since we work across various rating systems and have certified most building types — from heavy industrial to mixed-use, K-12 schools to outlet stores, and everything in between — we know which rating systems align with projects instinctively. Our job is adding to the subject matter expertise retained by sustainability consultants — knowing how many points a specific strategy earns under the warehouse version vs. commercial interiors so you can make an easy and informed decision about your certification strategy.
Question 5: Do Investors and Stakeholders Care about Certifications?
Answer: Building certifications offer many benefits that go beyond operational savings and energy efficiency. For example, certifications like WELL and Fitwel emphasize occupant health and well-being by focusing on areas like air quality, lighting, and acoustics. This focus on creating healthier spaces benefits the environment and enhances the quality of life for those inside the building. Ultimately, this creates happier tenants and more efficient employees.
For investors and stakeholders, building certifications are powerful tools for demonstrating value. They improve a building's marketability by attracting higher occupancy rates and rental premiums, thanks to their emphasis on sustainability and health. For property owners and managers, the direct added value of certifications lies in reduced operational expenses, increased tenant satisfaction, risk mitigation, and a healthier, more resilient building that meets both environmental and social goals.
Furthermore, certifications like LEED, WELL, and Fitwel are recognized by broader assessments such as B Corp and GRESB, which evaluate corporate sustainability and ESG performance. For businesses and real estate portfolios, achieving these certifications can be a core pillar of corporate sustainability strategy, helping companies stand out from competitors.
In a competitive market, certifications can boost a company's reputation and demonstrate a commitment to environmental and social responsibility. With growing consumer and investor demand for sustainable companies, building certification is a valuable tool for driving long-term business success.
Additionally, the pursuit of certifications can also lead to other financial benefits such as the 179D and 45L tax credits, which offer significant savings for energy-efficient buildings. Many states also provide rebates or grants for projects that meet sustainability standards. These financial incentives make green building certifications more accessible and reduce the overall cost of construction.
The Long-Term Value of Building Certifications
Building certifications provide many benefits, from financial incentives and operational savings to creating healthier environments for occupants. While these certifications come with upfront costs, the long-term benefits of reduced energy use, maintenance costs, and improved tenant satisfaction make them a worthwhile investment. Additionally, certifications enhance marketability, help secure financing, and are recognized by corporate sustainability assessments.
By investing in building certifications, you're improving the environmental impact of your project and adding value and resilience to your property. Emerald Built Environments is here to help you navigate the certification process and unlock these advantages for your next project. Reach out today to learn how we can guide you on your sustainable building journey.
