Buildings Are Empty, Now They Have to Go Green
New York City has one of the first and most expensive carbon taxes and has especially felt the impact of carbon taxes in recent years. Landlords in New York City will face a $268 fine for every ton of carbon dioxide emitted beyond certain limits.
The impact of the emissions laws will initially be small but one will follow after the other with more costly problems faced by landlords, such as rising interest rates and vacancy rates.
Some big landlords with multiple properties around the country will face fines in multiple jurisdictions. For example, Boston Properties, one of the nation’s largest real estate investment developers, is likely to suffer carbon taxes on all of its properties located in Boston, New York, and Washington, D.C.
With more expansive carbon taxes expected, complying with local building standards will become increasingly important for all landlords and building owners. Some landlords are already making energy efficiency a priority.
Shane Shifflet, Buildings Are Empty, Now They Have to Go Green: Rising rates, falling occupancy and new carbon taxes hit building owners, The Wall Street Journal, https://www.wsj.com/real-estate/commercial/buildings-are-empty-now-they-have-to-go-green-7739f6c5 (Sept. 2, 2023).
Tags: buildings, carbon tax, climate change, costs, emissions, energy efficiency measures, fines, landlords, New York City, real estate, regulations, sustainability, Tenants