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January 26, 2026
Building performance standards (BPS) are reshaping the landscape for commercial tenants and landlords. Unlike traditional building codes that focus on construction and design, BPS require ongoing operational performance — measured by metrics such as energy use intensity (EUI) and greenhouse gas (GHG) emissions — over multi-year cycles.
While building owners are legally responsible for meeting these standards, tenants play a pivotal role in determining whether a building achieves compliance. Their daily operations from plug loads to HVAC schedules often account for a significant share of whole-building energy use.
Owners facing the pressure of BPS compliance increasingly request tenant cooperation. This might include sharing utility data, allowing submetering and granting access for audits and retrofit work. When approached collaboratively, these requests can benefit tenants by reducing wasted energy, lowering utility bills and improving comfort. But tenants must be vigilant in the way these responsibilities are defined and managed within their lease agreements.
Penalties for non-compliance are typically at the owner’s risk and, in most jurisdictions, cannot be passed through to tenants as operating expenses. This is one of the strongest protections for tenants under BPS. Some statutes even codify this safeguard, provided tenants cooperate with reasonable data and access needs.
