The U.S. Department of Energy's Better Buildings Initiative recently recognized four leading REITs for their contributions to energy efficiency and sustainability. AvalonBay Communities, Inc. (NYSE: AVB), BXP, Inc. (NYSE: BXP), Rexford Industrial Realty, Inc. (NYSE: REXR), and Vornado Realty Trust (NYSE: VNO) received Better Project awards at the 2026 Better Buildings & Better Plants Summit held on May 11-13 in Arlington, Virginia.
The awards honor partners who demonstrate innovative, industry-leading accomplishments in implementing energy, water, and waste reduction measures across their portfolios.
AvalonBay Pilots Optimization Platform
AvalonBay, one of the nation's largest multifamily REITs, earned recognition for implementing cutting-edge energy management strategies across its portfolio. AvalonBay's partnership with Parity for HVAC optimization has already achieved more than $540,000 in savings while reducing CO2 emissions by more than 1,000 tons across its New York City properties.
"In today's regulatory and operating environment, where decarbonization mandates, cost pressures, and resident expectations are all converging, it's increasingly important that we're intentional – not reactive – about how we manage energy across our portfolio," said Alexander Heckman, senior director of engineering at AvalonBay.
“To stay ahead, we're leveraging technology that prioritizes real-time visibility, continuous performance improvement, and measurable outcomes. Tools like Parity's HVAC optimization platform is a prime example of how we're putting that into practice and giving our teams the data and controls they need to meet compliance requirements like Local Law 97, while also avoiding unnecessary capital disruption. The goal isn't any single solution. It's building an operational foundation where technology is doing real work, every day, across our most complex assets,” he added.
BXP Retrofits Iconic New York City Office Tower
BXP has established itself as a sustainability leader through its many years participating in the DOE Better Buildings Initiative programs. The company was recognized for completing a major HVAC retrofit at 601 Lexington Avenue, an iconic New York City tower, using heat-recovery technology.
BXP leveraged the tower’s existing steam infrastructure to link heating and cooling systems through innovative water-to-water heat pumps, improving energy performance with no disruption to tenants. The project is expected to avoid $1.3 million in steam costs over the first four years of operation by reducing the building’s annual steam use by 30%.
“Efforts to broaden the meaning of sustainability abound, but at its core, best practice remains cost-effective operational efficiency and waste reduction”, according to Ben Myers, SVP of Sustainability at BXP. “At 601 Lexington Avenue, the installation of condenser water heat recovery demonstrates that principle in action, strengthening environmental and financial performance.”
Rexford Transforms Industrial Property Reusing 95% of Existing Structure
Rexford Industrial Realty, an industrial REIT operating more than 35 million square feet throughout Southern California, has made sustainability central to its investment strategy. Rexford transformed a low-quality warehouse into an enhanced facility with modern building systems that optimize functionality and deliver energy and water savings for tenants. Rexford incorporated comprehensive performance upgrades while maximizing reuse of the existing building structure.
“The Better Buildings Project Award reflects the commitment of our team to delivering high performance, LEED certified properties that meet the evolving needs of our tenants and contribute to our shared energy efficiency and sustainability goals,” says Laura Clark, CEO at Rexford.
Vornado Utilizes Autonomous Commissioning Software
Vornado Realty Trust piloted building automation system (BAS) retro-commissioning software, PingCx, at 90 Park Avenue, rapidly testing 100% of existing BAS sequences in a matter of days and unlocking new opportunities for energy savings.
Following the success of the pilot, Vornado plans to implement PingCx across its entire office portfolio. The project involved analyzing more than 19,000 BAS data points, completing more than 3,100 automated functional tests in two days, and identifying 12,000 MMBtu in potential annual energy savings, equivalent to $398,000 in energy costs.
Hear Lauren Moss, chief sustainability officer at Vornado Realty Trust, discuss the program during an interview at REITwise 2026.
Through the Better Buildings Initiative, partners have collectively saved nearly $22 billion through efficiency improvements since 2011. The Better Project Awards recognize outstanding accomplishments at individual facilities, while the Better Practice Awards honor the implementation of practices and procedures across portfolios.
Award winners are selected based on benefits to organizational competitiveness, innovation in approach, magnitude of impact, and replicability across the industry. These four REITs demonstrate that sustainability leadership is not only environmentally responsible but also economically advantageous, driving operational efficiency, regulatory compliance, tenant satisfaction, and long-term value creation.
For more information on the tools and resources available visit the DOE’s Better Buildings program.