Building operations in the United States accounts for roughly 40% of all energy consumption. It’s a big reason why the commercial real estate (CRE) industry is increasingly focused on making sustainability efforts a top priority. Now, building technology solutions are helping to leverage those sustainability opportunities.
Technology for CRE sustainability will play a significant role in the future of establishing energy-efficient buildings. Benefits include:
- monitoring and streamlining operations;
- improving tenant experience;
- achieving critical energy certifications; and
- increasing return on investment (ROI).
Here are three reasons why CRE owners and operators should look to building technology solutions as a way of achieving greener properties.
1. Increased Building Efficiency
CRE technology is innovating the way we operate buildings. The pandemic forced the industry to adapt to a new world. Intelligent buildings and automation are working to shape the future of CRE. And owners and property managers need more information at their fingertips than ever before. That’s where building technology solutions come in.
The lowest-hanging fruit in terms of improving efficiency involves AI-powered maintenance and optimization. For example, certain software can plug into an existing BMS/BAS to implement real-time HVAC controls.
Building technology solutions built specifically for CRE sustainability can:
- quickly reduce energy costs and consumption;
- improve tenant comfort;
- meet and exceed indoor air quality (IAQ) standards; and
- reduce the number of HVAC service calls.
2. NOI and ROI Growth
Regardless of the optimizations building owners employ, a second pillar of any CRE sustainability strategy is measurement. Buildings are full of equipment and lighting, and you need an effective and proactive way to evaluate and optimize what’s there and plan for replacements.
For CRE sustainability purposes, building technology solutions allows you to see how much energy your equipment is consuming and how to adjust for better efficiency. For example, the right software can perform automated maintenance tasks on systems like HVAC.
Improved energy efficiency usually results in greater net operating income (NOI) simply because of energy cost savings and prolonged equipment life. Armed with measurement insights, building operators can also get a clearer and more granular view into how and when to plan for capital improvements and replacements. More effective measurement leads to better ROI.
3. Goals Met Faster with Real-time Data
Building owners who handle and manage proactive maintenance, measurement, optimization, and who make effective changes will be in a position to benefit from green certifications. In addition to the cost savings and improved energy efficiencies owners glean from these changes, green certifications like the Energy Star, LEED, and GRESB are marketable features.
However, there’s a certain amount of documentation required for certifications. CRE software can help you monitor key aspects like energy usage and where energy usage is coming from. For example, it matters for certification purposes where energy is purchased, and submitters need proof points to show that. Building technology solutions help owners then submit all the collected and formatted information to certification bodies.
Building Technology Solutions Are Benefitting Both CRE Owners and Tenants
Green buildings are becoming increasingly attractive to investors and tenants alike. CRE owners are seeing higher rents, tenant retention, and lower service call volumes. And as for tenants, they have seen an increase in comfort, improved employee health and productivity, and fewer temperature complaints.
If you want to grow your bottom line by 10%, consider implementing building technology solutions that have been proven to solve many of the bottlenecks you face in making buildings more energy efficient. Download “The CRE Playbook for Maximizing ROI on Sustainability” to learn more.