The same data that is allowing design to be smarter and operations to be more efficient is also now allowing residents to be more intelligent. This Commercial Observer article shares the news on a new program that will grade buildings on their energy performance giving residents a chance to be more educated and therefore make decisions about where to take their "business."
People might avoid eating at a restaurant with a “C” grade, but will they avoid living in a building with the same score? That’s the question building owners have to start asking themselves when a new law takes effect next year that will give properties a letter grade based on their energy consumption for the year.
Last year, Mayor Bill de Blasio signed Local Law 33 into effect, which would require residential and commercial buildings of more than 25,000 square feet to post an energy efficiency grade — ranging from “A” to “F” — near a public entrance starting in January 2020. And, as part of the nine-bill Climate Mobilization Act passed earlier this year, the city passed an amendment to Local Law 33 which slightly lessened the scores needed to achieve each grade.
“Owners are fearful,” said Jeff Hendler, the CEO of Logical Buildings, which operates a building energy management software platform. “[If a prospective tenant] walks into a building and they see a ‘D’ they’re going to ask why is there a ‘D’ on the front door of the building, [why] they have a very poor Energy Star score … When there’s another choice up the block that has an ‘A’ or a ‘B,’ that’s going to go into their decision box of things that’s important to them when they sign the lease.”
That worry can also extend to retail tenants — especially ones where sustainability is part of their brand, like Whole Foods — who might not want to lease space in properties with low ratings, Hendler said. “It’s definitely going to be part of the decision-making process on the commercial space,” he said.
The letter grades will be based on the United States Department of Energy’s Energy Star score, which gets generated through several measures including how much energy is used per square foot each year. Buildings that score an 85 of higher will get awarded an “A” rating, 70 or higher a “B,” 55 or higher a “C,” less than 55 a “D,” and an “F” if an owner doesn’t submit the information to the city, according to the legislation.
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