Tenant Submetering in NYC: Who Needs It, and Why.

What the Law Asks For

In a covered building, generally 25,000 sq ft and up, a covered tenant space is either of these:

• A single tenant over 5,000 sq ft. One tenant space larger than 5,000 gross square feet, on one or more floors, let to the same person.
• A shared floor over 5,000 sq ft. A floor larger than 5,000 gross square feet made up of tenant spaces let to two or more different tenants.

Either trigger creates the obligation, in commercial and residential buildings alike, with dwelling units excepted per DOB's FAQ. Spaces already on a dedicated meter are excepted from new submeters, but not from the filing. In practice, multifamily buildings often need little physical work; offices with large tenants and shared floors are where metering work concentrates.

The requirement is measurement plus monthly statements showing each covered space's consumption (Administrative Code 28-311.4). Usage-based billing is not required; flat-rate arrangements can continue where the lease allows. On shared floors, one floor-level meter can serve multiple tenants when statements break down each share. The report carries the attestation, a list of covered spaces, and a sample statement, filed through BEAM.

What Drives the Cost

Cost varies building to building. What moves it:

• How many covered spaces. The trigger count sets the meter count.
• Floor-level vs. per-tenant metering. One floor meter with allocated statements often serves a shared floor.
• Panel and riser access. Where the panels live drives the labor.
• What already exists. Existing dedicated meters can reduce the job to an attestation.

The cost of doing nothing is fixed: $1,500 a year for the missing report, plus $500 a year per unmetered covered space. A registered design professional or licensed electrician certifies and files. The extension and missed-deadline guide covers the penalty picture, and the full law page covers the lighting half.