Local Law 97 for Commercial Owners: What You Need to Know
Introduction
New York City’s Local Law 97 is one of the most ambitious climate laws in the country, setting strict carbon emission limits for buildings over 25,000 square feet. The goal is universal, but the path to compliance looks very different for commercial owners compared to residential boards. For office buildings, retail centers, and mixed-use properties, compliance is not optional. Owners who delay risk steep fines, reduced tenant demand, and long-term reputational harm.
Why Local Law 97 Matters for Commercial Properties
LL97 sets annual carbon emissions caps for large buildings, with limits tightening significantly in 2030. For commercial owners, the stakes are high. Many corporate tenants now seek energy-efficient, sustainable spaces that align with their own environmental commitments. Non-compliance means not only fines but also the potential loss of tenants who demand green-certified buildings.
The Risks of Non-Compliance
Fines for exceeding emissions caps can reach millions of dollars over time. Beyond financial penalties, commercial properties face:
Tenant dissatisfaction if costs rise from last-minute retrofits or fines passed through operating expenses
Competitive disadvantage when tenants choose greener, compliant buildings
Property value risk if the asset is seen as outdated or non-compliant with future environmental standards
Compliance and Deadlines
Owners should already have filed initial emissions reports and confirmed their building’s status under LL97. The next milestone is 2030, when emission limits become more stringent. The most important step today is developing a long-term compliance roadmap that identifies which upgrades need to happen first. For commercial buildings, this often means HVAC modernization, LED lighting retrofits, and exploring renewable energy options such as solar or green power purchasing.
How Jonasvar Helps Owners Prepare
At Jonasvar, we start with a compliance readiness review to assess where a property stands today. We partner with certified energy professionals to capture emissions levels and confirm compliance status. From there, we create a capital planning roadmap that includes retrofit priorities, estimated costs, and available financing options. We also coordinate with tenants to ensure lease structures, CAM charges, and retrofit responsibilities are clearly defined. Owners can expect:
A clear baseline emissions assessment performed by licensed industry professionals
Vendor recommendations for energy audits, retrofits, and system upgrades
Guidance on financing options including refinancing, PACE financing, and grants
Strategies for aligning compliance costs with tenant lease structures
Where Others Fall Short
Many owners and managers underestimate the time and cost of compliance, waiting until the last minute to take action. Others fail to coordinate with tenants, creating disputes over who pays for upgrades. Jonasvar takes a proactive approach by engaging owners and tenants early, setting clear expectations, and aligning compliance planning with lease and financial strategies.
Real-World Value
In one case, Jonasvar worked with a commercial property owner to develop a five-year compliance plan that spread retrofit costs across multiple budget cycles. By partnering with energy professionals to assess emissions and recommending HVAC upgrades early, the owner reduced both emissions and operating costs, while demonstrating to tenants that sustainability was a priority. This not only avoided future penalties but also supported tenant renewals from corporate clients committed to ESG goals.
The Jonasvar Difference
LL97 compliance for commercial owners is about more than avoiding fines. It is about protecting property value, meeting tenant expectations, and positioning the building competitively in a market that increasingly values sustainability. Jonasvar provides the planning, coordination, and tenant engagement while partnering with industry experts to capture emissions data and guide upgrades, ensuring compliance is accurate and legally sound.
The Bottom Line
Local Law 97 applies to everyone, but commercial owners face unique challenges with tenants, leases, and large-scale capital planning. Proactive compliance today ensures stronger tenant relationships and protects NOI tomorrow.
Let Us Help
At Jonasvar Inc., we manage your property like it’s our own by guiding owners through LL97 compliance with clarity, tenant coordination, and financial planning that safeguards long-term asset value.
Wondering if your commercial property is prepared for Local Law 97?