{"id":5951,"date":"2026-03-20T11:43:13","date_gmt":"2026-03-20T11:43:13","guid":{"rendered":"https:\/\/thecotocongroup.com\/blog\/?p=5951"},"modified":"2026-03-20T11:43:13","modified_gmt":"2026-03-20T11:43:13","slug":"nyc-buildings-losing-energy-grades","status":"publish","type":"post","link":"https:\/\/thecotocongroup.com\/blog\/nyc-buildings-losing-energy-grades\/","title":{"rendered":"Why Some NYC Buildings Lose Energy Grades Every Year"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: justify;\"><b>Why Some NYC Buildings Lose Energy Grades Every Year<\/b><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If you own or manage a building in New York City, you already know how important energy grades have become. A simple letter grade posted at your entrance can impact tenant perception, property value, and even leasing decisions. But here\u2019s the real concern\u2014many buildings don\u2019t just struggle to improve their grades, they actually lose energy grades year after year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">So, what\u2019s going wrong?<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Let\u2019s break it down in a practical way and understand why some NYC buildings fall behind\u2014and what you can do to stay ahead.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>Understanding NYC Energy Grades<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Before diving into the reasons, it\u2019s important to understand how energy grades work.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Under NYC benchmarking laws, buildings over 25,000 square feet must report their annual energy and water usage. Based on this data, each building receives an energy efficiency grade from A to D, largely driven by the ENERGY STAR score.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A higher score means better energy performance compared to similar buildings across the U.S. A lower score indicates inefficiency\u2014and potential compliance risks.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Also Read: <\/b><a href=\"https:\/\/thecotocongroup.com\/blog\/energy-star-benchmarking-improving-building-performance\/\"><span style=\"font-weight: 400;\">ENERGY STAR Benchmarking \u2013 Improving Building Performance\u00a0<\/span><\/a><\/p>\n<h4 style=\"text-align: justify;\"><b>1. Aging Building Systems Without Upgrades<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">One of the most common reasons buildings lose energy grades is outdated infrastructure.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Many NYC properties are decades old. While they may still be structurally sound, their mechanical systems\u2014like HVAC, lighting, and boilers\u2014often lag behind modern efficiency standards.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Older systems:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consume more energy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Require more maintenance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Perform inconsistently over time<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Without periodic upgrades, even a building that once had a decent energy score can slowly decline.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In simple terms, energy performance is not static. If you\u2019re not improving systems, you\u2019re likely falling behind.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>2. Lack of Regular Maintenance<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Even the best systems lose efficiency if they are not maintained properly.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Dirty filters, leaking ducts, poorly calibrated sensors, and aging components can all increase energy consumption. These small issues often go unnoticed but collectively impact your <\/span><a href=\"https:\/\/www.energystar.gov\/\"><span style=\"font-weight: 400;\">ENERGY STAR score<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Common maintenance gaps include:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Skipping seasonal HVAC tune-ups<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ignoring insulation wear and tear<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Poor boiler maintenance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Faulty lighting controls<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">When maintenance is reactive instead of proactive, energy performance drops over time.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>3. Changes in Occupancy and Usage Patterns<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Another overlooked factor is how a building is used.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Energy grades are not just about systems\u2014they are also about how energy is consumed.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For example:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased occupancy means higher energy use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Extended operating hours raise consumption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New equipment or tenants may add unexpected load<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If usage increases but systems remain the same, efficiency declines. That directly impacts your energy score.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is why buildings that once performed well may suddenly drop grades after tenant changes or operational shifts.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>4. Poor Benchmarking Data Accuracy<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A surprising number of buildings lose grades due to incorrect or incomplete data.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Benchmarking requires precise reporting of:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Square footage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Occupancy details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Energy consumption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building characteristics<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Even small data errors can significantly affect your ENERGY STAR score.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>For example:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overreporting occupancy can lower efficiency metrics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorrect energy inputs can skew results<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Missing data can reduce overall scoring accuracy<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In many cases, buildings don\u2019t actually perform worse\u2014they just report poorly.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>5. No Retro-Commissioning or Energy Audits<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Buildings are dynamic. Systems drift over time, and performance declines unless corrected.<\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/thecotocongroup.com\/nyc-local-law-87.html\"><span style=\"font-weight: 400;\">Retro-commissioning<\/span><\/a><span style=\"font-weight: 400;\"> helps identify inefficiencies in existing systems and brings them back to optimal performance. Similarly, energy audits highlight areas where energy is being wasted.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Buildings that skip these processes often experience:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gradual efficiency loss<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher utility costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Declining energy grades<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Without periodic optimization, even good systems underperform.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>6. Rising Citywide Energy Standards<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Here\u2019s something many owners don\u2019t realize: your building is not just competing with itself\u2014it\u2019s being compared to other buildings.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As more NYC buildings adopt energy-efficient technologies, the benchmark rises.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>That means:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What was \u201caverage\u201d before may now be below average<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buildings that don\u2019t upgrade fall behind<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Energy grades can drop even if usage remains similar<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is especially relevant with evolving regulations like <\/span><a href=\"https:\/\/thecotocongroup.com\/nyc-local-law-97.html\"><span style=\"font-weight: 400;\">Local Law 97<\/span><\/a><span style=\"font-weight: 400;\">, which pushes buildings toward stricter carbon limits.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>7. Inefficient Lighting and Equipment<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Lighting and plug loads may seem small, but they add up quickly.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Many buildings still rely on:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outdated fluorescent lighting<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inefficient appliances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Poor lighting controls<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Switching to LED lighting and smart controls can significantly improve energy performance. But buildings that delay these upgrades continue to lose efficiency year after year.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>8. Lack of Energy Management Strategy<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Perhaps the biggest reason buildings lose energy grades is the absence of a clear energy management plan.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Many properties treat compliance as a once-a-year task instead of an ongoing strategy.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Without a plan, there is:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No tracking of performance trends<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No proactive improvements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No accountability<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Energy performance needs continuous monitoring\u2014not just annual reporting.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>9. Weather and External Factors<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Weather also plays a role, especially in NYC.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Extreme winters or hotter summers can increase energy usage. While this affects many buildings, those with inefficient systems feel the impact more strongly.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Better insulation, upgraded HVAC systems, and smart controls can help mitigate these effects.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>10. Delayed Compliance Actions<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Finally, many buildings wait too long to act.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They only focus on energy performance when deadlines approach. By then, it\u2019s often too late to make meaningful improvements for that reporting year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Energy efficiency requires time. Delays lead to missed opportunities\u2014and lower grades.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h4 style=\"text-align: justify;\"><b>How to Stop Losing Energy Grades<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Now that you understand the reasons, here\u2019s how you can turn things around.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>1. Upgrade Key Systems<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Invest in modern HVAC, lighting, and building controls.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>2. Prioritize Preventive Maintenance<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Regular maintenance ensures systems operate efficiently year-round.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>3. Conduct Energy Audits<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Identify inefficiencies and fix them before they impact your score.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>4. Improve Benchmarking Accuracy<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Ensure your data is correct and complete.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>5. Implement Smart Energy Management<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Track performance continuously and adjust as needed.<\/span><\/p>\n<h6 style=\"text-align: justify;\"><b>6. Plan for Long-Term Compliance<\/b><\/h6>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Don\u2019t wait for deadlines\u2014build a strategy that aligns with NYC energy laws.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><b>Why This Matters More Than Ever<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Energy grades are no longer just about compliance. They influence:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property value<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tenant satisfaction<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operating costs<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market competitiveness<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In a city like New York, where sustainability is becoming a priority, energy performance is directly tied to business success.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4 style=\"text-align: justify;\"><b>Final Thoughts<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Losing energy grades year after year is not just bad luck\u2014it\u2019s usually the result of small issues adding up over time.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The good news is that most of these issues are fixable.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">With the right approach\u2014regular maintenance, accurate benchmarking, system upgrades, and a clear energy strategy\u2014you can not only stop losing grades but actually improve them.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For building owners and managers in NYC, the message is simple: energy performance is an ongoing process. The sooner you treat it that way, the better your results will be.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Why Some NYC Buildings Lose Energy Grades Every Year 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[43],"tags":[],"class_list":["post-5951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-grades"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why NYC Buildings Lose Energy Grades Every Year | Improve ENERGY STAR Score<\/title>\n<meta name=\"description\" content=\"Learn why NYC buildings lose energy grades every year and how to improve your ENERGY STAR score, reduce energy costs, and stay compliant with Local Law 97.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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