Editor's note:Matt Ellis is the CEO and co-founder of Measurabl, a data platform for building sustainability. The views expressed in this article are those of the author alone.

Energy Star Portfolio Manager (ESPM)—a software platform for building energy benchmarking and management—has been a cornerstone of sustainability practices in the real estate industry for years. It helps building owners secure low-interest loans, meet regulatory requirements (such as New York City's Local Law 97), enjoy rebates, and earn energy efficiency certifications that make their high-performing buildings stand out.

More importantly, according to the U.S. Environmental Protection Agency (EPA), which manages the program, ESPM delivers substantial financial returns for owners: an average ROI of $350 for every $1 invested. Currently, more than 330,000 buildings across North America, totaling 35 billion square feet of space, have become more efficient thanks to the platform—all at no cost, funded by a taxpayer-supported government program.

However, the Trump administration's fiscal year 2026 budget request proposes eliminating Energy Star and its affiliated Portfolio Manager. This raises a critical question: If the ESPM software platform disappears, how will building operators measure energy and sustainability performance?

The Way Forward

In the absence of ESPM, how should benchmarking proceed? First, not measuring energy performance is not an option; understanding building efficiency is not just a reporting obligation but a core element of long-term property value, capital access, and compliance. Energy efficiency retrofits can yield significant returns, as demonstrated by BXP, the world's largest publicly traded office REIT. According to analysis by our company (Measurabl), BXP has saved $1.4 million annually in energy costs since 2017.

ESPM underpins such successes. If the status quo cannot be maintained, we need alternatives—so what characteristics should a new solution have? To answer this, we spoke with our clients, some of the largest real estate organizations globally. Here are the core issues they care about:

  • Funding model:Should we rely on taxpayer-funded tools to manage mission-critical software products and solutions?
  • Benchmark basis:Should performance standards be based on the Commercial Buildings Energy Consumption Survey (CBECS)—a federal benchmarking tool updated every few years with a relatively small sample size?
  • Political risk:Should building data reside in government programs vulnerable to political shifts?
  • Globalization:When real estate is a global business, should tools be limited to a North America-centric perspective?
  • Pace of innovation:Can government-provided tools keep up with dynamic regulatory and operational demands?

From industry feedback, my core takeaway is this: the proposal is forcing real estate professionals to confront systemic deficiencies in how sustainability is treated as a value driver. Whether ESPM stays or goes, these deficiencies need to be addressed.

A Blueprint for the Future

I have distilled the above questions and potential solutions into five principles that can pave the way for better benchmarking and a stronger business case for sustainability:

  1. Industry autonomy, industry-led.Industry tools and data should be jointly governed by software users and data providers.
  2. Market-driven innovation.Tools must evolve and improve at the pace of the market. AI, automation, and dynamic benchmarking are all essential.
  3. Global comparability.Metrics should be consistent and comparable across asset portfolios and regions to reduce regulatory friction and investor confusion.
  4. Data neutrality and openness.In an industry of real estate's scale, alignment is critical. Any organization that contributes to or adds value to the data should be able to participate.
  5. Sustainable business model.Access to tools such as data management, benchmarking, and reporting should remain free. To ensure the longevity of solutions and drive innovation and return on investment, platforms need transparent revenue streams.

Bridging the Gap

The potential end of Energy Star forces fundamental questions about what should come next, why, and on what terms. These are healthy questions to ask at any time, but today they are especially critical for the path forward of the commercial real estate industry. The principles above will help us get there.