BPS, GRESB and Performance
If the first rule of real estate is location, location, location, then perhaps the second rule is performance, performance, performance.
As we enter 2025, Compliance, Regulation and Changes in reporting are primary focuses of sustainability and emissions reduction in the built environment. Depending on where your properties are located and if your company participates in voluntary reporting there are some key targets to keep track of:
GRESB Reporting changes around building certifications: GRESB has indicated it has made enhancements to its valuation of building certifications, giving greater value to standards that are well known to GRESB and focus on the current performance of the building. Although there is no penalty for non-certification/certification, this change has adjusted the ranking and stars for some companies, which can affect their investors.
Boston (BERDO) Building performance requirements: Starting with the May 2025 reporting, Multifamily buildings with fifteen (15) units or more will need to achieve the first phase threshold of the reporting targets, have their exemption filing accepted, or face penalties of up to $1,000 per day for every day out of compliance.
New York Local Law 97: Although the first year of compliance with Local Law 97 was 2024, the first year of penalties is 2025. Fines of $268 per ton of carbon dioxide equivalent (CO2e) over the limit per building will be issued.
Denver Colorado’s Energize Denver Performance: Final compliance pathway selection will be due in July of 2025. If a property does not meet its target, penalties will be assessed at $0.30 per gross square foot.
As you can see, performance is key in 2025. So is knowledge. Do you know which of your properties you need to comply with a building performance standard or building certification program? Do you know how it is performing against the current target and future targets? Do you know what your risks look like if performance is not properly tracked and reported?
Knowledge is power. We are here to provide you with the power to enter 2025 with a clear picture of your performance, risks, and options. For more information, please contact us.
