Why Energy Efficiency Certifications Matter When Renting Office Space

Sustainability is no longer a future goal, it’s a business need today. As of 2024, green-certified office stock in India stood at approximately 503 million sq ft, accounting for 66% of the total Grade A inventory across the top six cities. Bengaluru leads this transformation, contributing 31% of India’s green-certified office stock, followed by Delhi NCR at 19% and Hyderabad at 17%.

Today’s commercial spaces are designed to reduce energy and water usage, lower operational expenses, and enhance indoor air quality—factors that contribute not just to environmental goals but also to employee well-being and productivity.

For Indian businesses, understanding the value of certified spaces can result in smarter leasing decisions and long-term benefits.

What Are Energy Efficiency Certifications?

Energy efficiency certifications, such as LEED (Leadership in Energy and Environmental Design) and IGBC (Indian Green Building Council), serve as official recognition that a building has been designed and operated in a sustainable, resource-efficient manner. These certifications consider factors like energy use, water conservation, indoor air quality, and waste management.

For businesses, such certifications act as a guarantee that the building supports long-term efficiency. Over the years, they have become a standard for tenants seeking quality commercial space for rent in Bangalore and other urban hubs in India. A great example of this shift is ICP Tech 37, a green-certified building in Bangalore that has received the IGBC Gold LEED rating. It stands out with a lush, green façade covered in suspended creepers, an aesthetic and functional feature that reduces heat absorption and improves air quality. 

How Certifications Affect Operational Costs?

Energy-efficient buildings typically consume less electricity, thanks to features like energy-saving lighting and advanced HVAC systems. This leads to lower utility bills, especially relevant in cities with high commercial energy tariffs.

Water-efficient plumbing, rainwater harvesting systems, and structured waste management also help reduce indirect operational costs. All of these features work together to create a cost-efficient environment for tenants.

Better Indoor Environment for Productivity

Another key benefit of certified buildings is the improved indoor environment. Energy-efficient buildings are designed to enhance air quality, natural lighting, and temperature control—all of which contribute to employee productivity and well-being.

Studies by organisations like the World Green Building Council have shown that good indoor environmental quality can lead to fewer sick days, higher concentration, and overall improved morale at work.

Compliance and Corporate Responsibility

As ESG (Environmental, Social, and Governance) practices gain traction, companies are choosing to operate from spaces that align with their sustainability goals. Renting green-certified buildings is one way to reflect those values.

Governments and industry bodies are also encouraging such choices through incentives, awareness campaigns, and potential future compliance regulations. In this landscape, choosing energy-efficient office space is not only good for the environment, it’s also a smart business decision.

Higher Market Value and Better Retention

Green-certified buildings tend to retain higher market value due to their operational efficiencies and long-term appeal. They attract better tenants, often with longer lease durations, leading to consistent occupancy and returns for landlords.

For tenants, it means access to well-maintained, modern infrastructure that supports both daily operations and their brand image. In an era of client visits, digital content, and public perception, operating from a green building can subtly enhance a company's reputation.

What Tenants Should Look for in Certified Spaces?

Before signing a lease, tenants should confirm whether the building has valid certifications and what level it holds: Silver, Gold, or Platinum. Higher levels typically indicate a more comprehensive adoption of green practices.

Ask for specifics on the building’s energy systems, lighting, ventilation, and waste policies. Amenities like solar panels, parking can also add value for employees and reduce the building’s overall environmental footprint.

As Indian cities expand and adapt to the demands of a modern workforce, the role of energy-efficient office spaces will only grow. Businesses that lease these spaces benefit from lower operational costs while supporting the global shift toward sustainability and responsible development.