Blog
Berkeley’s New Building Energy Law: What Commercial Real Estate Can Expect
By: Brendan Cleary, Founder
The City of Berkeley amended its landmark regulation, the Building Energy Savings Ordinance (BESO), earlier this year. Beginning July 1, new compliance requirements take effect for many commercial property owners, including updated energy assessment and benchmarking obligations. For commercial buildings in Berkeley, this represents a new reality owners face: an aggressive building emissions law. The primary aim of this policy is to reduce greenhouse gas emissions from existing buildings.
Berkeley’s BESO arrives as the United States rapidly implements new energy regulations for buildings (see our report on the rise of building energy laws nationwide). Implemented in 2015, BESO initially required owners to disclose energy assessments, information, and benchmarking status. In 2025, Berkeley expanded BESO and made it a mandate. The ordinance now requires actual resilience and electrification upgrades.
Why Berkeley strengthened BESO
Berkeley’s motivation behind this law comes down to a few core reasons. First, buildings are the city’s largest greenhouse gas emitters. The ordinance was designed to uncover energy costs and greenhouse gas savings opportunities. Secondly, Berkeley recognized that the existing building stock, not just new construction, are the primary emitters of greenhouse gases. In 2019, the city already mandated that new buildings cut down on fossil fuel usage. This bill marks a turning point for energy regulations in the city.
Berkeley also wanted to align upgrade requirements with the time of sale, which is often the most convenient moment for owners to invest in improvements.
What commercial owners must do
For commercial property owners, the law is split into three tiers.
| Building size (commercial) | BESO requirements |
|---|---|
| Up to 14,999 sq ft | Energy assessment at the time of listing |
| 15,000–24,999 sq ft | Energy assessment at the time of listing and annual benchmarking |
| 25,000 sq ft or greater | Energy assessment every 5 years and annual benchmarking |
For CRE owners, now is the time to review your building’s BESO compliance requirements. Whether your property requires an energy assessment, annual benchmarking, or both, staying ahead of Berkeley’s deadlines can help avoid delays and penalties at sale or during operations.
Looking ahead
Berkeley is unlikely to be the last city to strengthen its building performance regulations. Across the country, local governments are shifting from energy disclosure requirements toward policies that actively reduce building emissions. While Berkeley has not proposed an emissions cap similar to New York City’s Local Law 97, the city’s recent amendments suggest that building energy regulations will continue to evolve in the coming years.
San Francisco is one of the cities actively working on legislation that will enforce energy requirements for real estate more strictly.
If your building needs BESO annual benchmarking, energy savings analysis, or retrofit solutions, we provide energy services for real estate throughout the Bay Area. Contact us today to discuss your compliance needs, we are available seven days a week to help you achieve your sustainability goals.