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The best operated portfolios don’t necessarily do more of any one thing. Instead, driven by a deep understanding of what is important, these industry leaders apply technologies, invest in equipment, and update operational strategies intelligently. Over time, doing all the small things correctly unlocks asset value that would otherwise have been lost to wasted operating expenses.
Here are some of the things that the best operated portfolios don’t do.
In the early days, determining the effectiveness of a retrofit – measurement & verification (M&V) – commonly consisted of comparing baseline and post-installation expenses for the entire building. While methods have developed over time to focus more closely on the equipment that was replaced or upgraded, it is still largely a retroactive strategy.
But what if this process could be performed before the installation?
Building operations and sustainability departments are under increasing pressure to contribute to the bottom line through cost savings. As real estate companies continue to trim their budgets, so continues scrutiny of building operations dollars.
And yet, there persists an assumption that automation through a Building Management System (BMS) will lead to “smart” buildings and improved performance.Read More
Perhaps more than any other function, building operations in commercial real estate (CRE) is primed to reap the benefits of advances in Big Data and Internet of Things (IoT) technology.
However, to date, systems have been deployed piecemeal to address specific problems. Solutions have typically been implemented as siloed, expert-oriented tools lacking the ability to communicate or share data with other integral systems.Read More
In office and apartment buildings across the country, operators are adjusting equipment systems and responding to issues so the rest of us remain comfortable.
But building operators are lacking the tools they truly need to excel at their jobs. That’s exactly where machine learning comes in.Read More
In response to federal inaction on policies to address climate change, city governments have begun to aggressively take up the mantle. In few places has this been embodied more than in New York City by Mayor Bill de Blasio’s administration.
Instead of doing the bare minimum to avoid penalties, owners and operators can get ahead of the trend and make improvements on their own terms.Read More
Opex savings have an outsized effect on asset value.
Here's an easy visual to understand exactly where those operating expenses are going, how to save costs, and the massive effect it can have on asset value.Read More
Surprisingly, real estate is still largely dependent on manual processes and personal relationships, building operations have only recently become more exacting.
This is not necessarily coming easy; most owners and operators would still prefer to stick with a vendor or partner they know than to follow the cold, hard data. But will this change? If so, how soon?Read More
The internet of things, big data, machine learning, artificial intelligence, smart buildings. Even for those in the industry, it’s hard to tell what’s real and what is just hype.
One thing is certain. Commercial real estate companies are deploying technology today that is revolutionizing how they manage their assets.Read More
When the decision is made to submeter tenants for their utility usage, the owner or property manager is making a choice that could impact their bottom line for decades.
Even with tenant relationships and potentially millions of dollars at stake, choosing a submetering vendor is often an afterthought. More often than not, the company in charge of submetering is selected by the design engineer because they provide cheap hardware and have been around since the 1980’s.Read More
A convergence of trends is compelling real estate service companies to become drivers of technology adoption across the industry.
Whether due to increasing competition, pressure from owners and occupiers or improved technology, major service companies are shedding the “slow to adapt” label that is often associated with commercial real estate.Read More
Real estate owners and operators are increasingly turning to technology to reduce costs and improve net operating income in the face of flattening revenue progression.
Here are five ways technology is being used to optimize real estate operations.Read More
The manual process of utitliy submetering & billing is inefficient, inaccurate, frustrating and costly.
An automated tenant submetering process is performed efficiently and with 100% accuracy.
This infographic compares the two processes point by point.Read More
Since the Financial Crisis of 2008, the real estate industry has seen a recovery and large returns in many markets (albeit not all). Now, a decade later, high yields are no longer guaranteed.
With revenue progression relatively fixed, the focus for CRE owners and operators should be on cost reduction and tenant retention for added value and stabilized NOI.Read More
Many Commercial Real Estate (CRE) companies bill their tenants each month based on the amount of electricity, water and/or gas they consume. Generally, this is a smart business move.
There's just one little problem. The current process of billing tenants for their actual consumption is inefficient, inaccurate, frustrating and costly. Here are the biggest problems with tenant submetering as it stands today and how technology can help alleviate them.Read More
For many operators in commercial real estate portfolios, it’s a struggle to find the time to plan and implement a comprehensive maintenance plan.
Under-maintaining assets leads to a “debt” that is impossible to recover from. Worse, this reactive maintenance process relies on tenant complaints for fault detection.Read More
Get a visual breakdown of how Enertiv's Operations Performance System works at different levels of a building. From tracking fan belt failure on the roof, to submetering tenants throughout a building and all the way down to chiller performance in the basement.
Transparency is an abstract concept, but it is something that building operators need to do their job effectively. This visual will help you see what we mean by transparency into your assets.Read More
Imagine it’s 1:14 AM. Demand for your exhaust fan was interrupted and the fan scheduling was reset to factory settings. As a system essential for the health of occupants, it should be running 24/7. Instead, later that night, some of the cleaning crew gets sick due to a lack of ventilation in the basement.
Unfortunately, this is not a hypothetical. This is a real situation that occurred with an Enertiv customer, and illustrates well what we mean by “critical” equipment.
According to the Building Owners and Managers Association (BOMA), electricity and maintenance costs account for roughly $3.50 of the almost $8.00 per square foot in annual operating costs.
Given the scope of the problem, it’s surprising that so many landlords treat maintenance and energy costs as fixed and unavoidable. Management of these systems, and their associated costs, are essential to maximizing asset value, yet a shockingly few number of portfolios have an effective strategy in place.