SL Green built One Vanderbilt to be a high-flying environmental beacon for a future of the office market could look like. And yet, New York City environmental rules have already rendered some parts outdated.
Design work was completed on the building in 2016, before the city’s latest environmental law passed. At the time, SL Green’s building seemed like a masterclass in climate change-aware design and much of the property still boasts energy-efficient features.
The trophy property has turbines that burn natural gas, which could be a problem as New York City aims to eliminate fossil fuels in its buildings. SL Green’s director of engineering admitted to the New York Times the turbines may need to be replaced in the future.
One Vanderbilt has a self-contained power plant that can generate as much energy as six football fields of solar panels. The design also allows the building to harness rainwater and reuse the runoff to heat or cool those in the building.
Sustainability and energy efficiency are at the core of the building’s design, but natural gas is not part of the city’s desired future. Natural gas contains methane and its burning produces carbon dioxide. The city has instead been pushing for hydropower, wind and solar energy use.
Under Local Law 97, greenhouse gas emissions are supposed to be cut across city buildings by 40 percent by 2030 and 80 percent by 2050. The penalty phase of the law begins next year, though, and many buildings aren’t ready to meet the environmental standards, which the Real Estate Board of New York estimated could result in $900 million in cumulative fines by 2030.
SL Green’s danger of being dinged by an environmental law hasn’t hurt its appeal with office tenants.
GFL Environmental last year signed a deal for 9,900 square feet at the property’s top rentable office floor, directly below the Summit observatory. The asking rent on the space was $322 per square foot, which means SL Green may be commanding the highest office rent in city history.
— Holden Walter-Warner
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