Will Private Tech Firms Inherit Energy Star’s Benchmarking Role?

• Dying star: Energy Star’s potential end could disrupt building compliance and ESG tracking, with private firms racing to fill the gap.

• Algorithm reprieve: Colorado’s governor vetoed a bill that would have banned RealPage’s rent-pricing software, amid ongoing antitrust lawsuits.

• Trust issues: A $1.7 billion New York real estate empire is stuck in limbo as Sol Goldman’s heirs battle over its future.

ESG & Compliance

Will Private Tech Firms Inherit Energy Star’s Benchmarking Role?

The proposed elimination of the Energy Star program threatens to upend the commercial real estate industry's foundational systems for energy benchmarking, compliance, and sustainability certifications. For over three decades, Energy Star has been integral to measuring building performance, influencing everything from local regulations to federal tax incentives. Its removal could lead to a fragmented landscape, complicating compliance and undermining investor confidence.

Cities like New York and Boston rely heavily on Energy Star's Portfolio Manager for enforcing energy efficiency mandates. Without it, building owners may face challenges in meeting local laws, accessing tax credits, and maintaining green certifications like LEED. The sudden absence of a standardized benchmarking tool could disrupt operational workflows and financial planning across the sector.

While private platforms such as Cambio Vault and Measurabl are stepping in to fill the void, questions remain about their ability to replicate the trust and uniformity provided by a federal program. The industry stands at a crossroads: adapt to a decentralized system with potential inconsistencies or collaborate to establish a new standard that ensures continuity and credibility in energy performance tracking.

Overheard

RealPage Dodges Another Blow With Colorado Veto

Colorado Gov. Jared Polis has vetoed House Bill 1004, which was the nation’s first-of-its-kind legislation passed by a state legislature to ban landlords from using AI-powered rent pricing tools such as RealPage’s YieldStar software. Tenant advocates argue that such tools facilitate landlord collusion and inflate rents, but Polis cautioned that the bill could have unintended consequences, including restricting useful tech and exacerbating housing supply issues. 

Critics slammed the veto. “This sends the devastating message that corporate landlords can keep using secret price-fixing algorithms,” said Sam Gilman of the Community Economic Defense Project. A 2024 study by the Biden White House claimed algorithm-driven pricing added up to $136 a month to Denver rents.

RealPage applauded the decision, as some of Colorado’s largest landlords rely on its software. "RealPage applauds Governor Polis for his courageous leadership in doing the right thing and vetoing HB25-1004," the company said in an emailed statement. "This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike. We want to thank Governor Polis and the broad array of supporters of housing affordability who instead advocated for the responsible use of technology and tools like RealPage's algorithmic pricing software to find fair pricing, ultimately benefiting all Coloradans."

Polis’ veto provides RealPage with more temporary relief, coming on the heels of a larger buffer that could emerge if the U.S. House Republicans’ tax bill passes. A provision in the tax bill would impose a federal moratorium on local AI-related regulation for a full decade. But legal risks persist for RealPage and others. Colorado’s attorney general, the DOJ, and seven other states are pursuing a civil antitrust suit against RealPage for alleged price-fixing.

Ongoing Inheritance Battle Puts $1.7 Property Portfolio in Limbo

A high-stakes legal battle is unfolding among the heirs of the late Sol Goldman, once one of New York City's most prolific landlords. The dispute centers on control over a sprawling real estate portfolio valued at over $1.7 billion, encompassing hundreds of properties across Manhattan. As family members vie for dominance, the conflict threatens to disrupt operations and strategic decisions within the empire.

The contention arises from differing visions for the management and future of the holdings. Some heirs advocate for modernization and potential liquidation of certain assets, while others aim to preserve the legacy and maintain the status quo. This internal discord not only hampers decision-making but also raises concerns among tenants, partners, and financial institutions involved with the properties.

This familial strife underscores the complexities of succession planning in real estate dynasties. Without clear governance structures and aligned objectives, even the most robust portfolios can face instability. As the legal proceedings continue, stakeholders across the industry will be watching closely, recognizing that the outcome could set precedents for handling generational transitions in property empires.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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