News: Brokerage

Will Your Buildings be Local Law 97 Compliant by 2025? - by Alexander Hochhausl

Alexander Hochhausl

Over 70% of New York’s greenhouse gas emissions come from buildings. In New York City, those emissions come from 1 million buildings burning fossil fuels for heating, cooling, and power.

New York City’s 2019 Climate Mobilization Act, a first-of-its-kind legislation for the City, included passage of the New York City Building Emission Law, also known as Local Law 97. The new law sets increasingly stringent caps on greenhouse gas emissions that building owners must meet by 2024 and certify compliance by May 1, 2025 or face civil penalties.

Under the New York City law, if your building exceeds 25,000 gross square feet or if you have multiple buildings on the same lot that together exceed 50,000 gross s/f, you may need to measure and report carbon emissions to the Department of Buildings.

If you know that your building is exempt from the emissions limits, the law still requires owners to undertake and report on thirteen prescriptive steps addressing weatherization, lighting, and equipment maintenance, controls, and upgrades.

What happens if your building is not compliant by the 2025 filing deadline? The simple answer is that you will be fined. For example, a 100,000-square-foot office building that exceeds the emission limit by 20% will receive a bill from the City for over $45,000! Another bill will be sent every year you are not in compliance. This will continue until 2030, when the emission limits are further reduced, leading to increased fines.

The good news is that NYSERDA, NYC agencies, and utilities offer a variety of financial incentives and financing to assist building owners with paying for assessments and upgrades. There are also financial assistance options tied to the consultation and engagement of registered professionals throughout the measurement and compliance process.

Alexander Hochhausl is a department manager for H2M architects + engineers, Melville, NY.

MORE FROM Brokerage

SABRE coordinates sale of six properties totaling 199,845 s/f

Huntington, NY SABRE Real Estate Advisors has completed the sale of six commercial properties across Long Island and Northern New Jersey, further underscoring the firm’s strength as a trusted partner in complex real estate transactions. The deals were led by executive vice presidents Jimmy Aug and Stu Fagen, whose combined expertise continues to drive exceptional results for clients across the region.
READ ON THE GO
DIGITAL EDITIONS
Subscribe
Columns and Thought Leadership
Lower interest rates and more loan restructuring can help negate any negative trending of NOI on some CRE projects - by Michael Zysman

Lower interest rates and more loan restructuring can help negate any negative trending of NOI on some CRE projects - by Michael Zysman

Lower interest rates and an increased number of loan restructurings will be well received by the commercial real estate industry. Over the past 12 months there has been a negative trend for NOI for many properties across the country.
Lasting effects of eminent domain on commercial development - by Sebastian Jablonski

Lasting effects of eminent domain on commercial development - by Sebastian Jablonski

The state has the authority to seize all or part of privately owned commercial real estate for public use by the power of eminent domain. Although the state is constitutionally required to provide just compensation to the property owner, it frequently fails to account
Behind the post: Why reels, stories, and shorts work for CRE (and how to use them) - by Kimberly Zar Bloorian

Behind the post: Why reels, stories, and shorts work for CRE (and how to use them) - by Kimberly Zar Bloorian

Let’s be real: if you’re still only posting photos of properties, you’re missing out. Reels, Stories, and Shorts are where attention lives, and in commercial real estate, attention is currency.
Strategic pause - by Shallini Mehra and Chirag Doshi

Strategic pause - by Shallini Mehra and Chirag Doshi

Many investors are in a period of strategic pause as New York City’s mayoral race approaches. A major inflection point came with the Democratic primary victory of Zohran Mamdani, a staunch tenant advocate, with a progressive housing platform which supports rent freezes for rent