More ways to showcase management excellence

Erin A. Hopkins, Ph.D.

Not long ago, sustainability certifications were often associated with new construction. If a property wasn’t built to green standards, many owners assumed certification wasn’t a realistic option.

That’s changing.

As investor expectations evolve and sustainability reporting becomes more common, owners and management companies are looking for practical ways to demonstrate sustainability performance across existing assets. For many, the IREM^® Certified Sustainable Property (CSP) certification has become one of those tools.

Research recently published in the Journal of Sustainable Real Estate and awarded the best manuscript in the Apartments category by the American Real Estate Society (ARES) sheds light on why. The study, conducted by Erin A. Hopkins, Ph.D., of Virginia Tech, included interviews with owners, management companies, owner-operators, and consultants active in the multifamily sector. The goal was straightforward: understand what’s motivating organizations to pursue the IREM CSP.

“This research fills a gap as most prior research has focused on building design and construction and energy efficiency certifications like LEED^® and ENERGY STAR^®,” Hopkins says. “Since most of a building’s lifecycle happens during the operations and management phase, this is the first study to look specifically at what drives adoption of the CSP, a certification specifically created for this building lifecycle phase.”

She adds that the findings show the CSP is seen as a “human-centered” certification, helping make the case that property management significantly affects a building’s sustainability profile and market position.

Investors are paying attention

The most common reason participants gave for pursuing the CSP was investor pressure. Sustainability reporting has become a larger part of how many institutional investors evaluate opportunities, and certifications help provide a credible way to demonstrate performance.

For some firms, the conversation starts long before a property is acquired. Investors want to know what sustainability programs are in place, how performance is being measured, and whether third-party certifications support those efforts. The CSP helps answer those questions.

Competition is also a factor. When neighboring properties promote sustainability credentials, owners don’t want their communities to be a step behind. Certification helps communicate that a property’s operations align with current market expectations.

A practical way to support GRESB goals

The Global Real Estate Sustainability Benchmark (GRESB) was another major factor cited by interview participants. As sustainability benchmarks become increasingly important to real estate investors, firms are looking for ways to strengthen portfolio-level performance.

That’s where the CSP fits naturally. Property-level certifications can support broader reporting objectives while giving site teams a framework for improving day-to-day operations.

In other words, what’s happening at the property level is no longer separate from what’s happening at the portfolio level.

The two are increasingly connected.

Existing buildings need a different path

One of the more interesting findings from the research was how often participants compared the CSP with LEED.

Many interviewees acknowledged that some older properties simply weren’t designed with design-based certifications in mind. Significant upgrades may not be financially feasible, and even large investments don’t always guarantee a building will qualify.

What appealed to many respondents was that the CSP focuses on how a property operates. It provides a pathway for existing buildings to demonstrate sustainability performance without requiring extensive capital projects.

For owners of mature assets, that’s a meaningful distinction.

It’s really about people

Perhaps the most distinctive takeaway from the research is that the CSP recognizes the role people play in sustainability.

Many green building programs focus primarily on physical building features. Participants described the CSP differently. They saw it as recognition of the policies, procedures, and everyday decisions that drive performance.

In practical terms, that means acknowledging the work property managers, maintenance teams, and on-site staff are already doing. This is important because successful sustainability programs rarely come down to equipment alone. They’re built through consistent execution, communication, and operational discipline. The IREM CSP helps bring those efforts into focus.

The ROI question

One of the more interesting findings was what respondents didn’t emphasize. Most participants didn’t identify direct financial return as the primary reason for pursuing the CSP, even though financial benefits are often central to conversations about green building certifications. However, efficient operations can have a meaningful impact on net operating income (NOI), particularly through lower utility expenses.

Cumulative ENERGY STAR Portfolio Manager^® metrics from certified properties, updated in April 2026, show energy costs 60% lower than the national median, an average ENERGY STAR score of 77, greenhouse gas emissions 24% better than the national median, and water use intensity 32.5% better than the national median.

That suggests the CSP is less a financial strategy than an operational strategy with financial benefits. Companies may pursue certification to meet investor expectations, improve operations, or showcase management excellence, but the resulting efficiencies can help reduce operating expenses and strengthen NOI and long-term asset performance.

What this means for property managers

The biggest takeaway may be that sustainability is becoming part of good property management.

The organizations interviewed weren’t pursuing the CSP simply to add another logo to a marketing brochure. They were using it to demonstrate operational excellence, support investor expectations, provide structure for sustainability efforts, and recognize the work happening onsite every day.

For property managers, Hopkins says the practical takeaway is clear. “Given that LEED O+M is often financially and logistically out of reach, especially for Class B/C assets, the study highlights the CSP as a viable alternative pathway that can be useful for owners and managers deciding where to allocate limited sustainability budgets across a portfolio.”

She also notes that “the IREM CSP can provide a competitive advantage, particularly in markets where neighboring properties are already certified.”

As sustainability continues to move into the mainstream, owners and investors will increasingly expect evidence of performance, not just intentions. Property managers are uniquely positioned to provide that proof because they’re the ones translating sustainability goals into everyday action.

The IREM CSP gives them a way to show that the work they’re already doing matters. Judging by the findings of this research, that’s becoming just as important as the certification itself.