03 Feb Can Local Law 97 Compliance Lead to an Increase of my Building’s Value?
New York City’s Local Law 97, which was enacted in 2019, sets carbon emissions limits for buildings in the city. Building owners are required to comply with the law’s requirements, which are based on the building’s square footage and use. Noncompliance can result in substantial fines, so it is important for building owners to understand the requirements of the law and take steps to comply. However, there is more to compliance with Local Law 97 than simply avoiding fines. Complying with the law can also lead to an increase in the value of the building. Here are a few reasons why:
1. Energy Efficiency: One of the key components of Local Law 97 is reducing the amount of energy a building consumes. By improving the energy efficiency of the building, owners can reduce their energy costs, which can have a positive impact on the building’s bottom line. In turn, this can make the building more attractive to tenants, which can increase its value.
2. Sustainability: In addition to reducing energy consumption, Local Law 97 promotes sustainability. By taking steps to reduce the building’s carbon footprint, building owners can demonstrate their commitment to the environment, which can be appealing to tenants who are environmentally conscious. This can also make the building more appealing to potential buyers if the owner decides to sell.
3. Attractiveness to Investors: In recent years, there has been a growing interest in sustainable and environmentally responsible investments. By complying with Local Law 97, building owners can make their building more attractive to these types of investors. This can lead to increased demand for the building, which can drive up its value.
4. Compliance as a Competitive Advantage: Finally, compliance with Local Law 97 can give building owners a competitive advantage over others who are not in compliance. This can make the building more attractive to tenants, which can increase its value.
In conclusion, complying with Local Law 97 is not only a requirement, but it can also provide building owners with a range of benefits, including increased energy efficiency, sustainability, and building value. By taking steps to comply with the law, building owners can ensure that their building is attractive to tenants, investors, and potential buyers. You can follow Jimmy on his LinkedIn.