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Last updated on Feb 19, 2023
3 min read
by Content Team

What Is LEED Certification?

In this article:
  1. What Is LEED?
  2. LEED Goals
  3. LEED Certification
  4. Projects Eligible for LEED Certification
  5. Related Questions
  6. Get Financing
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What Is LEED?

The Leadership in Energy and Environmental Design rating system — more commonly known as LEED — is a globally recognized green building certification program. Created in 1993, LEED was born from the combined efforts of the Natural Resources Defense Council and the United States Green Building Council, or USGBC. The collaboration itself promotes the creation of new and sustainable architectural design guidelines and sustainable building construction and operation.

The LEED rating system has since become a global standard for healthy, green, and sustainable property construction and operation — with the certification itself becoming a symbol for achieving sustainability and prioritizing green initiatives. Since its widespread adoption, LEED certification now exists for the vast majority of both residential and commercial property types.

LEED Goals

The LEED rating system focuses on the need for sustainable architecture. Through the ongoing evolution of the rating system, LEED certifications today identify healthy, efficient, and cost-saving green buildings. According to the USGBC, the ideal LEED-certified building should:

  • Limit contributions to climate change
  • Enhance health and quality of life for a community and individuals
  • Protect or restore water resources
  • Protect or enhance biodiversity
  • Protect and enhance ecosystem services
  • Rely on sustainable and regenerative material cycles

LEED Certification

The LEED certification process involves third-party verification of a project's compliance with LEED standards. The Green Building Certification Institute, or GBCI, awards the final certification. In order to earn a LEED certification, a project should adhere to prerequisites and credits that address points of concern such as carbon, energy, water, waste, transportation, materials, and indoor environmental quality. A project earns points for each area, based on the evaluation.

Based on the amount of points a project accumulates, it falls into a LEED certification tier — though scores lower than 40 points render a project ineligible for certification. The amount of points required for each tier is as follows:

  • Certified (40 to 49 points)
  • Silver (50 to 59 points)
  • Gold (60 to 79 points)
  • Platinum (80+ points)

Projects Eligible for LEED Certification

Today, nearly any project can qualify for LEED certification. While the primary focus of LEED at inception was to improve how new projects were developed, global adoption of standards all but demanded more nuanced variations of LEED evaluations to include a wider variety of certification types. LEED certification evaluations now exist for:

  • Building Design and Construction (BD+C)
  • Interior Design and Construction (ID+C)
  • Building Operations and Maintenance (O+M)
  • Neighborhood Development (ND)
  • Single Family Homes
  • Cities and Communities

Additionally, LEED Zero evaluation exists for projects that have net zero carbon/resource goals. Recertification is also available for all occupied or in-use projects that have already received certification — regardless of their previous rating.Typically, investors seek recertification as a way of maintaining their green investment after executing renovation or rehabilitation work.

Related Questions

What is LEED certification and how does it benefit apartment owners?

LEED certification is a globally recognized green building certification program created in 1993 by the Natural Resources Defense Council and the United States Green Building Council (USGBC). It is a symbol of sustainability achievement and green initiative leadership, and is a global standard for healthy, green, and sustainable property construction and operation. LEED certification focuses on the need for sustainable architecture, and identifies healthy, efficient, and cost-saving green buildings. According to the USGBC, the ideal LEED-certified building should:

  • Limit contributions to climate change
  • Enhance health and quality of life for a community and individuals
  • Protect or restore water resources
  • Protect or enhance biodiversity
  • Protect and enhance ecosystem services
  • Rely on sustainable and regenerative material cycles

Benefits of LEED certification for apartment owners include improved energy efficiency, lower operating costs, increased tenant satisfaction, and higher rental rates. LEED-certified buildings also have a higher resale value and can qualify for tax incentives and other financial benefits. Source

What are the requirements for LEED certification?

In order to earn a LEED certification, a project should adhere to prerequisites and credits that address points of concern such as carbon, energy, water, waste, transportation, materials, and indoor environmental quality. A project earns points for each area, based on the evaluation. Based on the amount of points a project accumulates, it falls into a LEED certification tier — though scores lower than 40 points render a project ineligible for certification. The amount of points required for each tier is as follows:

Certification Tier Points Required
Certified 40 to 49 points
Silver 50 to 59 points
Gold 60 to 79 points
Platinum 80+ points

Additionally, according to the USGBC, the ideal LEED-certified building should limit contributions to climate change, enhance health and quality of life for a community and individuals, protect or restore water resources, protect or enhance biodiversity, protect and enhance ecosystem services, and rely on sustainable and regenerative material cycles.

What are the advantages of LEED certification for apartment owners?

LEED certification offers a variety of advantages for apartment owners. LEED-certified buildings can save a significant amount of energy and can often quality for tax credits and other benefits. Plus, they can enhance the marketability of a multifamily development, particularly for upscale properties in major MSAs. Additionally, a green report can help to determine what, if any, opportunities there are to increase the energy efficiency of a property. These could include special windows, roof or wall insulation, new thermostats, LED lighting, energy-efficient appliances, and a variety of other upgrades. The report will also generally include the cost and the ‘payback’ period of each upgrade (i.e. the time it would take for the upgrade to pay for itself in the form of increased energy savings).

What are the costs associated with LEED certification?

LEED certification typically falls under the category of soft costs, such as architectural planning and building inspection costs. However, LEED requirements may lead to a building using more expensive construction materials, which can add about 2% to the hard costs of a development project. Additionally, LEED-certified buildings can qualify for tax credits and other benefits, which can offset the higher upfront costs.

The amount of points required for each LEED certification tier is as follows:

Certification Tier Points Required
Certified 40-49
Silver 50-59
Gold 60-79
Platinum 80+

For more information, please visit the USGBC website.

How long does it take to get LEED certification for an apartment building?

The LEED certification process typically takes between 6 and 12 months, depending on the size and complexity of the project. The Green Building Certification Institute (GBCI) awards the final certification. In order to earn a LEED certification, a project should adhere to prerequisites and credits that address points of concern such as carbon, energy, water, waste, transportation, materials, and indoor environmental quality. A project earns points for each area, based on the evaluation.

Based on the amount of points a project accumulates, it falls into a LEED certification tier — though scores lower than 40 points render a project ineligible for certification. The amount of points required for each tier is as follows:

Certification Tier Points Required
Certified 40 to 49 points
Silver 50 to 59 points
Gold 60 to 79 points
Platinum 80+ points

Source: apartment.loans/posts/what-is-leed-certification, www.multifamily.loans/apartment-finance-blog/a-close-up-on-different-types-of-leed-evaluation, www.multifamily.loans/apartment-finance-blog/hard-vs-soft-construction-costs-for-multifamily-developers

In this article:
  1. What Is LEED?
  2. LEED Goals
  3. LEED Certification
  4. Projects Eligible for LEED Certification
  5. Related Questions
  6. Get Financing
Tags
  • LEED
  • LEED Certification
  • USGBC
  • green building
  • multifamily
  • apartment finance
  • multifamily investing

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