Just when you thought you were starting to get a handle on this market, there is now something new to ponder. New York City Local Law 84/09 requires that by May 1, 2011 buildings that are 50,000 square feet or larger will have to report to the City their usage for electricity, gas, fuel oil, steam and if equipped with an automatic meter reading equipment, water.
The Department of Buildings has generated a list of all buildings that must make such reports
This information will be available to the public for residential buildings starting September 1, 2013. It will be interesting to see what influence, if any, this will have on prices of individual apartment units. I suspect it will have an affect in buildings having an energy usage that varies widely with other similar buildings. It will be one more factor for buyers to consider in this age of increasing energy costs and so sellers should be thinking about this data in determining the selling price. It could be a positive or negative depending upon the situation. I can just imagine a broker advising a client about the benefits of being in an energy efficient building so that maintenance or common charges wouldn’t be as likely to increase. I can also hear a lawyer warning a client about the possibility of maintenance or common charge increases due to the energy inefficiency of a building. This seems like a good time for co-ops and condos to consider the costs and benefits of becoming more energy efficient so as not to hamper sales in the future when this information goes viral.