It’s no secret that large commercial and residential buildings consume a vast amount of energy every day. The Environmental Protection Agency estimates 30% of energy consumption in US commercial buildings is actually wasted; meanwhile, the Department of Energy estimates that a simple 10% reduction in commercial building energy consumption would result in $40B collected savings.
With 41% of total US energy consumed by commercial and residential buildings, it is safe to say that, as a country, we are wasting billions of dollars and resources annually.
The Landlord Balancing Act: Space, Payments, & Tenant Satisfaction
When it comes to operating these buildings, landlords have the same priorities and pain points. If all three main priorities are settled, the landlord enters ultimate nirvana:
- Getting paid on time
- Creating a beautiful space
- Keeping tenants happy
However, we don’t live in a perfect world and although everyone tries their best, things are bound to happen: pipes burst, sidewalks crack, tenants miss payments, landlords bill incorrectly. So, given that we live in an imperfect world, is there a way to use software to make tenant interactions with landlords more frictionless?
The Basement Tech Revolution
The proliferation of hardware sensors in cellars and sub-cellars of commercial and residential buildings, combined with enterprise software platforms has given rise to the phenomenon that MetaProp NYC calls “Basement Tech.” Now, for the first time, a building owner can deploy solutions that track, predict, and lower building energy consumption in real time.
At MetaProp NYC, we see a lot of new technologies being developed to improve the real estate industry. Companies like Aquicore are at the forefront of submetering consumption and centralizing the data in one complete platform to provide complete transparency and analytics. With submetering hardware and centralized portfolio data, these types of technologies are making landlords’ lives easier and better.
Aquicore’s platform can detect energy consumption anomalies in real time and alert landlords through email or text message immediately. For example, if your office building is unintentionally blasting air conditioning at 2:00 AM on Christmas Eve when it’s cold outside and no one is in the building, Aquicore will alert the facilities manager to shut off that AC unit immediately.
Asset Value Improvement With Greater Transparency
By reducing operating expenses, this owner is now actually increasing his or her investment in the property.
Not only does this energy reduction draw less power from the grid and reduce carbon emissions, but it also assists with driving asset value for landlords. Even though cap rates are being compressed to sub-atomic levels, this tool can help a landlord increase value and grow Net Operating Income (NOI) for a portfolio.
While this is certainly not the most glamorous part of real estate, getting paid and keeping tenants happy is arguably the most important part of real estate. Real estate technology continues to innovate in areas such as leasing, marketing, property management, and financing, but progress in utility billing has been surprisingly slow.
One of the most exciting things about energy efficiency hardware and software platforms is that they are not a zero sum game. They benefit landlords, tenants, and the environment. Now that’s thinking ahead.