In this article, you’ll learn:

• Local 97 Law enforces emission cuts but allows a "Good Faith" approach for landlords.
• High retrofit costs may lead landlords to opt for fines instead.
• New regulations will ease compliance pressure for landlords showing effort.
• Why tenants should ensure landlords are compliant and protect their lease terms.

Commercial tenants, landlords, and investors are navigating a new environment of increasingly aggressive environmental regulations.
Because the urgency to address climate change is pushing governments to target the commercial real estate industry as a significant contributor of global greenhouse gasses. New legislation places emphasis on sustainability and green practices, under a total-war approach. The alternative to achieving carbon-neutrality is severe fines that will continue throughout the decade.
The issue with this is that the cost (and pressure) of these upgrades have been put on to property owners. You know, the office landlords being forced to hand back the keys because of rampant vacancies and climbing debt, those property owners.
 
But have no fear, New York City is committed to ensuring that it reaches its goal of carbon neutrality under its Local 97 Law. And in order to make it work, the government is promising commercial landlords a little bit of leeway to phase in green technology at a more realistic pace. So, let’s discuss the city’s most recent "Good Faith" approach to carbon neutrality and what it means for tenants.