Colorado-Real-Estate-Journal_539279

July 15-August 4, 2026 - Page 35 www.crej.com Green Building Spotlight Integrated exper se to future-proof your next build. Stok partners with owners, occupiers, and project teams to translate sustainability ambi on into asset value. “Stok has been an invaluable partner in helping us deliver on Clayworks’ ambi ous sustainability vision.” Sarah Marvez Director, Commercial Development, AC Development DECARBONIZE COLORADO NOW NET ZERO ENERGY PROJECTS 60+ HIGH-PERFORMANCE BUILDING PROJECTS 1000+ EXPERTS ACROSS CARBON, CERTIFICATIONS, ENERGY ENGINEERING, COMMISSIONING, AND PROJECT DELIVERY 100+ SQUARE FEET OF REAL ESTATE SERVED GLOBALLY 750 million B uilding owners and opera- tors face growing pressure to future-proof their portfolios with limited capital and resourc- es. As Building Performance Standards (BPS) expand across Colorado, leading organiza- tions are using them to prioritize investments that strengthen port- folio performance and long-term value. BPS establish ongoing ener- gy and carbon performance thresholds for existing build- ings to drive efficiency and reduce emissions. With BPS deadlines rapidly approach- ing, penalties escalating, and requirements becoming more stringent over time, programs like Energize Denver and Building Performance Colo- rado (BPC) are driving action while creating opportunities to make smarter CapEx deci- sions that improve asset per- formance, reduce operating costs, and avoid regulatory fines through portfolio-level BPS action plans. COLORADO-SPECIFIC BPS Before building an action plan, it’s important to under- stand the requirements of Col- orado’s two primary BPS. Energize Denver applies to commercial, multifamily, and i n d u s t r i a l buildings larg- er than 25,000 square feet. Key require- ments include: • Annual energy bench- marking using ENERGY STAR Portfolio Man- ager, includ- ing a one-time third-party veri- fication of the 2025 or 2026 benchmarking submission for covered buildings, with a sec- ond verification required in the building’s final target year. • Building-specific perfor- mance targets requiring reduc- tions in energy use relative to a 2019 baseline, with required reductions varying by building type and compliance pathway. • Interim compliance mile- stones starting in 2028 and final performance compliance by 2032. Buildings that miss a per- formance tar- get face an annual pen- alty of $0.15 to $0.35 per kBtu over their tar- get under the city’s current penalty sched- ule. A separate maintenance penalty applies to buildings that fall out of compliance after initially meeting their target. Building Performance Colo- rado (BPC) applies to commer- cial, multifamily, and public buildings larger than 50,000 square feet. Key requirements include: • Annual whole-building energy reporting, due between July 1 and November 1. • Target sector-wide emis- sions reduction of 20% by 2030, compared to 2021 baseline (option to elect 2019 baseline). • Three available compli- ance pathways include Ener- gy Efficiency, G r e e n h o u s e Gas Reduc- tion, and Stan- dard Percent R e d u c t i o n pathways. Benchmark- ing violations carry penalties up to $577 for first offense and up to $2,300 for subsequent offenses. Start- ing January 1, 2030, missing the 2030 performance standard will result in fines up to $2,300 for every 30 days in violation, and up to $5,800 for every 30 days of subsequent violation. Buildings covered by Ener- gize Denver are considered compliant with BPC perfor- mance requirements, though must submit benchmarking data to both city and state, and pay program fees. Leading owners are using these requirements to prioritize invest- ments across entire portfolios. STEP 1: START WITH PORT- FOLIO RISK AND INVESTMENT PRIORITIZATION Effective BPS strategies begin with portfolio-wide pri- oritization. A portfolio risk and investment prioritiza- tion matrix scores each asset against common criteria, help- ing decision-makers identify where regulatory exposure, capital opportunity, and asset strategy intersect, uncovering where capital can deliver the strongest risk-adjusted return. Owners can prioritize assets by evaluating buildings through five lenses: • Strategic importance: How it influences hold/sell strategy, market positioning, and due diligence. • Compliance risk: How far it is from meeting BPS targets and timelines. • Cost exposure: How much Building Performance Standards: A Portfolio Playbook for Smarter Capital Planning Devon Bertram Senior Vice President, Sustainability, Stok Ariel Nicholas Director, Client Solutions, Stok Sandy Houck Director, Energy Engineering, Stok Please see Bertram, Page 39