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- NYC’s new composting law fines landlords for failing to separate organic waste.
- Office buildings with food services must comply with NYC’s mandatory composting or face penalties.
- Landlords must invest in waste management or risk fines as NYC ramps up compost law enforcement.
In New York City, it’s now illegal not to compost. While that may first seem like a headache only residents need to shoulder, many business and commercial property owners must also comply with the new law.
The Department of Sanitation collects yard waste, food scraps, and food-soiled paper to convert into compost or renewable energy. Citywide composting is now mandatory.
“The grace period for this new rule began in October 2024 and ended on April 1, 2025. Residents mixing compost with trash are now subject to fines,” according to the Official Website of the City of New York.
And fined they have been.
In the 10 days after the law went into effect, the Sanitation Department issued nearly 2,500 tickets to properties failing to follow the city’s new composting rules.
Low-density buildings are fined $25, and high-density ones $100 for a first offense. After three violations, fines max out at $100 and $300, respectively. Renters won’t foot the bill though. Instead, landlords should expect to pay the fees if an inspector catches them breaking the law.
Who Is Required to Follow the Composting Law?
But who is required to follow this law exactly? Well, all residential buildings and their tenants, as well as some commercial New York City businesses, including office buildings.
Under the city’s Commercial Organics Requirements, many office buildings and commercial spaces must separate organic waste for composting. While the law primarily targets food-related businesses, it applies to office buildings that meet specific criteria, such as those with food service areas, in-house cafeterias, or building-wide catering services.
For example, commercial spaces generating large volumes of organic waste are required to comply. This can include large office towers with corporate dining facilities or shared kitchens across multiple floors.
Buildings that don’t meet those volume thresholds may not fall under mandatory commercial composting, but mixed-use or food-service-inclusive office properties do.
Fines and Penalties for Non-Compliance
Failure to comply can mean hefty fines and added scrutiny, especially as the Department of Sanitation ramps up enforcement. For property owners and managers in the commercial real estate sector, this means reassessing their waste management protocols and working closely with tenants and vendors to ensure compliance.
The burden typically falls on landlords or building management, not individual tenants, similar to residential enforcement. That means building owners are the ones that will need to invest in compost bins, staff training, and new hauling contracts to avoid citations — and reputational risk.
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Challenges and Opportunities for Commercial Real Estate
Beyond penalties, the rule also marks a shift in how commercial real estate in New York must think about sustainability. As climate legislation becomes stricter across the city, this could signal more regulatory pressure on commercial buildings to reduce waste, lower emissions, and provide greener infrastructure.
Still, not all commercial buildings are likely to get on board right away; many may struggle to implement composting systems efficiently. Limited space for sorting stations, lack of tenant cooperation, or inadequate building staff training could all contribute to gaps in compliance.
Some landlords may also view the mandate as just another cost burden in an already strained commercial real estate market. Over time, this cost will likely be passed on to tenants within new contracts or renewals, making office leasing in the city even more expensive.
As New York aims for zero waste by 2030, landlords and property managers who invest early in green building practices, including robust composting programs, could gain a competitive edge. Whether driven by fines, tenant demand, or environmental responsibility, the pressure is mounting for commercial real estate to get with the composting program.
