What is LEED Certification, and Why Should I Care for My Business?

What is LEED Certification?

LEED (Leadership in Energy and Environmental Design) is a third-party green building certification program developed by the U.S. Green Building Council (USGBC) to recognize best-in-class sustainable building strategies and practices worldwide.

 

Making a commitment to environmentally conscious building practices helps commercial real estate owners stand out in today's market. LEED certification not only promotes a green-friendly business image but also provides long-term savings through lower energy bills and reduced maintenance costs.

Are LEED Certifications Worth It?

LEED certification stands out as more than an environmental achievement—it’s a strategic move that can significantly reduce operating expenses while enhancing property appeal. By optimizing energy efficiency, LEED-certified buildings attract quality tenants and increase asset value over time. For commercial property owners, these benefits make LEED certification a solid investment with tangible long-term returns.

The Value of LEED

The value of LEED certification is realized in both measurable and immeasurable ways. Statistics from the U.S. Department of Energy that show LEED-certified buildings reduce CO2 emissions by 34%, and consume 25% less energy and 11% less water. For green retrofit projects, achieving such energy efficiency pays for the improvements in just seven years.

Additionally, property values for green buildings get a 4% boost when measured against comparable non-green buildings. For investors, commercial property investing, these sustainability benefits can enhance asset value and contribute to a stronger return on investment. For those interested in leasing properties with these benefits, exploring LEED certified buildings for lease provides options that align with sustainable and cost-effective practices.

The immeasurable benefits come in the form of the goodwill that will accrue to your business based on your use of green-energy building practices. For a significant segment of the population, those environmental benefits alone make achieving LEED certification a positive for your business.

How to Achieve a LEED Certification

Owners can achieve a LEED certification by earning credits for various environmentally friendly practices in design, construction, operation, and maintenance. Buildings that meet a minimum point threshold earn a certification level: Certified, Silver, Gold, or Platinum.

Before you register your project for LEED certification, ensure your project meets minimum requirements, such as environmental compliance and data sharing. To register your project, submit a certification application, and undergo a review to verify compliance and point achievement.

For those assessing the potential financial impact, bringing a building up to LEED standards can enhance commercial property value by improving energy efficiency, reducing operational costs, and increasing appeal to eco-conscious tenants and investors.

LEED Certification Requirements

Minimum Program Requirements

• Permanent Location: Projects must be in a permanent location on existing land.
• Site Boundaries: Use reasonable site boundaries.
• Environmental Compliance: Must comply with all applicable environmental laws.
• Data Sharing: Agree to share energy and water usage data with USGBC.

Credit Categories

Projects earn points in the following categories:

• Sustainable Sites: Site selection and development impact.
• Water Efficiency: Reduction in water use and management.
• Energy and Atmosphere: Energy performance and renewable energy use.
• Materials and Resources: Sustainable materials and waste reduction.
• Indoor Environmental Quality: Air quality and natural light.
• Innovation: Innovative sustainable practices.
• Regional Priority: Addressing regional environmental priorities.

Types of LEED Certification

LEED certification falls under several rating systems and levels based on the type of project and the points earned through sustainable practices.

• Building Design and Construction (BD+C): Includes residential design and construction.
• Interior Design and Construction (ID+C): For complete interior fit-out projects.
• Building Operations and Maintenance (O+M): For existing buildings undergoing improvements.
• Neighborhood Development (ND): For new land development projects or redevelopments.
• Homes: For single-family homes and low-rise to mid-rise multifamily buildings.

Certification Levels

• Certified: 40-49 points
• Silver: 50-59 points
• Gold: 60-79 points
• Platinum: 80+ points

LEED Certified

LEED Certification is the entry-level designation, awarded to projects earning 40-49 points. It recognizes buildings that meet basic sustainable design and performance standards. Achieving Certified LEED status can enhance a building's marketability, reduce operational costs, and improve tenant satisfaction by providing a healthier indoor environment.

LEED Silver Certification

Silver LEED Certification is granted to projects that achieve 50-59 points. This level demonstrates a stronger commitment to sustainability, incorporating more extensive green practices. Companies that achieve a Silver LEED certification benefit from improved energy efficiency, lower utility bills, and an enhanced reputation for environmental responsibility.

LEED Gold Certification

Gold LEED Certification is awarded to buildings that earn 60-79 points. It reflects a high level of sustainability and efficiency in design, construction, and operations. Benefits of achieving Gold LEED certification include significant cost savings, increased asset value, and a competitive edge in attracting eco-conscious tenants and investors.

LEED Platinum Certification

Platinum LEED Certification is the highest level, given to projects that achieve 80 or more points. These buildings exemplify exceptional sustainable performance and innovation in environmental design. The benefits of Platinum LEED certification include maximum energy savings, minimal environmental impact, and the highest level of recognition for sustainability, which can boost a company's brand and appeal to stakeholders.

LEED Certification Cost

Achieving LEED certification requires a substantial monetary investment, including a registration fee, a certification review fee, and the cost associated with earning the required points. The registration and certification fees alone, depending upon the square footage of the project, can exceed several thousand dollars-sometimes substantially more for larger projects. You can learn more about the USGBC's fee structure here.

This article was updated on 11/1/2024