New York City’s Local Law 87 (LL87) is one of the most impactful energy efficiency regulations introduced under the city’s Greener, Greater Buildings Plan. It requires large buildings to undergo energy audits and retro-commissioning every 10 years. While the law focuses on compliance, it also opens a powerful opportunity for property owners to cut long-term energy costs, improve system performance, and increase property value.

But how exactly do these energy-efficient upgrades lead to real savings? Let’s explore how following through on your LL87 audit results can transform your building’s bottom line.

Understanding Local Law 87

Local Law 87 (LL87) applies to buildings over 50,000 square feet (or multiple smaller buildings on a single lot that together exceed that size). The law has two major components:

1. Energy Audit – A detailed evaluation of how your building consumes energy, including lighting, HVAC systems, boilers, elevators, and insulation.
2. Retro-Commissioning – A process to ensure existing systems are operating efficiently and as designed, identifying maintenance and operational improvements.

After completing both, building owners must submit an Energy Efficiency Report (EER) to the NYC Department of Buildings.

The main goal? To help owners understand where energy (and money) is being wasted — and how strategic upgrades can eliminate those inefficiencies.

From Audit to Action: The Real Value of Upgrades

Completing an LL87 audit is just the starting point. The real financial benefits come when owners act on the audit’s recommendations.

Energy auditors identify low-cost and high-impact improvements that can reduce energy waste. Implementing these changes often leads to:

• Lower utility bills
• Reduced maintenance costs
• Improved tenant comfort
• Extended equipment lifespan
• Higher building valuation

Let’s take a closer look at how these savings unfold through different upgrade types.

1. Lighting Upgrades: Bright Ideas That Pay Off

Lighting is one of the easiest and most effective areas to target after an LL87 audit. Replacing old fluorescent or incandescent fixtures with LED lighting can reduce lighting-related energy use by up to 70%.

LEDs also last up to 25 times longer, meaning fewer replacements and lower maintenance costs. For commercial buildings, this can translate into thousands of dollars saved each year in both energy and labor costs.

In addition, integrating occupancy sensors and daylight harvesting systems can further enhance savings by automatically adjusting lighting levels based on usage and natural light availability.

2. HVAC Optimization: Reducing Heating and Cooling Costs

Heating, ventilation, and air conditioning (HVAC) systems account for a significant portion of a building’s energy consumption. An LL87 audit often identifies issues such as:

• Inefficient controls or thermostats
• Unbalanced airflow
• Dirty filters or coils
• Poorly insulated ducts

Retro-commissioning and upgrading these systems can lead to energy savings of 10–20% or more.

Modern solutions like variable frequency drives (VFDs), programmable thermostats, and smart building management systems help fine-tune HVAC performance and ensure the system runs only when needed.

These upgrades not only lower monthly utility costs but also reduce equipment wear and tear — cutting down on expensive emergency repairs and replacements.

3. Building Envelope Improvements: Stop Energy from Escaping

Your building envelope — walls, roofs, windows, and doors — plays a vital role in maintaining indoor comfort. Many LL87 audits reveal that older buildings suffer from poor insulation or leaky windows, causing heating or cooling energy to escape.

Upgrading to high-performance windows, adding insulation, or sealing air leaks can significantly improve energy retention. The result is lower energy demand and improved comfort for tenants.

Over time, the savings on energy bills can easily offset the cost of these upgrades, while also reducing the building’s overall carbon footprint.

4. Submetering and Energy Monitoring Systems

Another major recommendation from LL87 audits is to install submeters and energy monitoring systems.

Submetering allows building owners and property managers to track energy use by tenant or by system. This transparency encourages responsible energy use and helps identify areas where efficiency improvements are most needed.

When tenants are billed based on actual usage, they tend to consume less energy — creating a win-win situation for both owners and occupants.

5. Water Conservation and Energy Efficiency

Many LL87 audits also include water-related energy recommendations. For instance, low-flow fixtures, efficient pumps, and hot water system insulation can drastically reduce both water and energy consumption.

Heating water is one of the biggest hidden energy costs in buildings. Reducing hot water use by 20–30% can make a noticeable difference on your utility bill — especially in multi-family and commercial buildings.

Long-Term Financial Benefits

Energy-efficient upgrades might seem like an upfront investment, but they deliver substantial long-term returns. Here’s how:

a. Reduced Operating Costs

Every dollar saved on energy costs adds directly to your bottom line. With energy prices continuing to rise, efficiency improvements act as a buffer against inflation.

b. Higher Property Value

Buildings that meet energy performance standards attract higher rents and resale prices. Energy-efficient properties are in high demand among environmentally conscious tenants and investors.

c. Tax Incentives and Rebates

New York State and local utilities offer incentives and rebates for implementing efficiency upgrades. These can offset a significant portion of your upfront costs.

d. Compliance with Future Regulations

As New York pushes toward its carbon neutrality goals under Local Law 97, energy-efficient buildings are better positioned for compliance and to avoid future carbon penalties.

The Role of a Local Law 87 Consultant Service

Navigating LL87 compliance and identifying the best upgrades can be complex. That’s where a Local Law 87 Consultant Service like The Cotocon Group makes a big difference.

A professional consultant helps you:

• Conduct a thorough and compliant energy audit
• Perform retro-commissioning efficiently
• Prioritize upgrade recommendations based on ROI
• Identify rebates, incentives, and financing options
• Ensure your Energy Efficiency Report (EER) is properly filed

By partnering with an experienced consultant, building owners can turn compliance into a strategic opportunity for cost reduction and sustainability improvement.

Real-World Example: From Audit to Annual Savings

Consider a 100,000-square-foot commercial building in Midtown Manhattan. After its LL87 audit, the consultant identified three major opportunities:

1. Replacing fluorescent lighting with LEDs
2. Installing a building automation system
3. Optimizing HVAC scheduling and controls

The total upgrade cost was about $250,000, but the annual savings in energy and maintenance reached nearly $80,000 — a payback period of just over three years.

Afterward, the building’s ENERGY STAR score improved, property value increased, and tenants reported better comfort and satisfaction.

Conclusion

Complying with Local Law 87 is not just about fulfilling a city mandate — it’s an opportunity to make your building smarter, more efficient, and more profitable.

By acting on your LL87 audit results, you can reduce waste, lower energy bills, enhance tenant comfort, and future-proof your property for upcoming sustainability requirements.

Energy-efficient upgrades may start with compliance, but they end with savings, performance, and value.

If you’re ready to take the next step, consult The Cotocon Group, a trusted Local Law 87 Consultant Service, to help guide your building toward maximum efficiency and financial return.