Did you know that in less than seven years, starting on January 1st, 2018 New York City building Code will require all buildings that are 100 feet in height or more to have a working sprinkler system in place, on all floors, in compliance with the new sprinkler mandates?

You might think this code doesn’t apply to you, but it could. And if it does, be careful. Complying with these code changes will cost someone a lot of money. Most of the older buildings in the city don’t currently have sprinkler systems in place. Installing these systems will not only be disruptive to work flow, but will be expensive.

So who’s responsible to get this done? It depends. If you sign a lease and somewhere deep inside a three page paragraph that most people don’t read, let alone understand, it says the Tenant shall be responsible to comply with all codes…then it will be the Tenant’s obligation. Landlords are wise to this change and are routinely adding language to their leases stating that it is the tenant’s responsibility to pay for such installations.

What’s it cost? According to Frank Loffredo, of Loffredo Brooks Architects, the cost to sprinkler a commercial space will easily be $4.50 per square foot, which means that sprinklerling your typical 10,000 square foot floor will run at least $45,000.00.

If you’re a small business, the last thing you want is a call from our Landlord telling you these changes need to be made and by the way it’s on your dime. So, if you’re signing a lease or considering a lease renewal that extends beyond January 1, 2018, look out for language having to do with sprinkler installation!

You might see something along the lines of, “if a change in the law is made requiring floors to be sprinklered, this will be at the tenant’s expense.” The lease might not specifically state that this change in code has occurred and will go into effect in 2018, but it’s to your advantage be aware of this issue so you don’t get caught in a bad and expensive situation.

Unfortunately, most commercial tenants don’t know about this code and if your attorney does not specialize in commercial leasing, he or she may not either. The last thing you want as a Tenant is to be blindsided by something like this and expose yourself to the downtime and expense. It’s important both to know about the law and make sure your broker and your lawyer can effectively negotiate or mitigate this potential expense.