NEW ORLEANS – As energy prices continue to rise, energy-efficient buildings are increasingly seen as more valuable in commercial real estate markets nationwide. New Orleans has already started adapting to that shift by using new benchmarking and transparency requirements to improve building performance.
Retail electricity prices in the United States have risen faster than inflation since 2022 and are expected to continue increasing through 2026, according to forecasts from the U.S. Energy Information Administration.
According to Louisiana Public Service Commission data, the average monthly electricity cost for a typical household in Louisiana using 1,000 kilowatt-hours was about 8% higher in July 2025 than in July 2024.
Commercial Property: Energy-Efficient Buildings
A recent National Association of Realtors (NAR) survey of more than 2,000 commercial real estate professionals found that businesses increasingly prioritize energy efficiency when purchasing or leasing commercial property. More than half of commercial realtors say that promoting a building’s energy efficiency adds value when listing it. About one-third reported that green building certifications increase commercial property value.
Seventy percent of respondents said utility and operations expenses are important to clients, helping explain why efficiency measures such as improved insulation, energy management systems and behind-the-meter solar installations are gaining traction.
Local Policy Push Aligns with National Trends
Those national trends are intersecting with local policy. In July, the New Orleans City Council adopted the city’s first Building Energy Benchmarking ordinance, requiring large commercial buildings to track and report annual energy use. The measure applies to buildings larger than 20,000 square feet and is a key strategy within the city’s Climate Action Plan to reduce emissions and improve efficiency.
Large commercial buildings account for roughly 20% of New Orleans’ citywide greenhouse gas emissions, according to the City’s Office of Resilience & Sustainability. City officials say benchmarking provides building owners with actionable data to identify inefficiencies, plan upgrades and manage long-term operating costs.
“Our office has been laying the groundwork for years, and we’re proud to finally launch a program that will reduce emissions, drive investment, and increase transparency across the building sector,” said Greg Nichols, director of the City of New Orleans Office of Resilience & Sustainability.
Benchmarking requirements will roll out in phases beginning Jan. 1, 2026, for properties of 50,000 square feet or more, followed by buildings between 20,000 and 50,000 square feet in 2027. Owners will report energy use through the EPA’s ENERGY STAR Portfolio Manager, with annual performance data published by the city to promote transparency.
Since 2012, the city has benchmarked its own municipal buildings. Between 2018 and 2021, that effort reduced municipal energy use by 23%, demonstrating the cost-saving potential of data-driven energy management. In 2025, the city launched a public Municipal Building Energy Use Dashboard that translates ENERGY STAR data into a public-facing view of performance and progress across city-owned buildings.
Grid Efficiency Workforce
A new report from the Building Performance Association found that energy efficiency is now the largest energy-related employment sector in 39 states plus the District of Columbia with job growth nearly doubling since 2021. That growth spans building retrofits, construction trades, energy auditing, engineering and smart building technologies.
Louisiana is not included in that list.
Local officials say the benchmarking ordinance is expected to help catalyze energy efficiency activity by identifying inefficient buildings and giving owners clearer data. The policy is designed to spur private investment and green job creation while improving performance in workplaces across the city.
Incentives, Market Forces and What Comes Next
In New Orleans, the benchmarking program is supported in part by a $1.5 million U.S. Environmental Protection Agency Climate Pollution Reduction Grant, which funds staffing, outreach and technical assistance for building owners. Penalties for noncompliance range from $1,000 to $3,000, though fines will be waived during a property’s first year of required compliance.
While broader federal climate and environmental justice funding has faced cancellations under the Trump administration, the Climate Pollution Reduction Grant supporting New Orleans’ benchmarking program remains intact for now.
Nationally, as federal energy-efficiency incentives wind down, industry leaders say market forces could continue pushing adoption. For New Orleans, the convergence of rising energy costs, national job growth in energy efficiency and new local benchmarking requirements suggests that building performance is becoming less of an environmental add-on and more of a core business issue—one tied directly to operating costs, competitiveness and long-term resilience.
