The use of CRE energy management can have a resounding impact on tenants, tenant-customers and overhead costs for CRE providers. However, adoption of CRE energy management can still be a hard-sell to stakeholders. Therefore, CRE Facility Managers need to understand the benefits of effective energy management and what it means to the company.
Why Haven’t All Companies Adopted New Technology for CRE Energy Management?
Before implementing a CRE energy management program, the Facility Manager will need to overcome the barriers to adoption. According to Aanchal Singh of FM Link, the most significant obstacles to the adoption of new technology for CRE energy management include inefficient financial valuation practices and simply not understanding the technology behind proactive energy management. The process for overcoming these obstacles is simple; they need to learn how energy management will help the company and how its true financial benefits will become a source of profitability, not extra expenditures.
New Technology Streamlines Energy Management
The biggest reason for implementing a CRE energy management program is cost reductions. Instead of trying to put out fires and add to the budget through reactive maintenance, CRE energy management can help the Facility Manager identify potential malfunctions before they occur. For example, HVAC units that are on the verge of a malfunction tend to draw more energy than they do when operating correctly. Recognizing this change in energy use patterns highlights the problem and gives Facilities Managers the opportunity to correct it. Therefore, energy costs decrease, and long-term costs, such as the total cost of ownership of the asset, decrease in tandem.
Benefits of New Technology in CRE Facilities Management
The benefits of new technology in CRE facilities management are based on streamlined facilities management too. Some of the leading benefits include:
- Descriptive, predictive and prescriptive analytics to optimize asset function and condition. Since the assets are properly maintained, the risk of disruption to tenants and building occupants decreases. Also, the different types of analytics can provide insight into the causes of an issue, what might happen if a problem occurs and how to achieve an optimum outcome.
- Smart metering to understand energy use patterns. Smart metering of assets and the building can help avoid peak-use surcharges by identifying when a building uses the most and least energy. Simply reducing energy consumption during peak hours lowers operating costs and reduces the stress of managing the budget.
- Cloud-based infrastructure to enable scalability and continuous improvement. Cloud-based technology effectively put the burden of maintaining energy management systems in the hands of partners. Furthermore, cloud-based infrastructure may utilize better cybersecurity protocols that the systems in your facilities today. In other words, implementing a new CRE energy management system could lower your risk of a cyber-attack too.
- Better allocation of labor resources. While the Facility Manager oversees multiple properties, facility management team members can work on addressing proactive maintenance needs and interacting with tenants. This builds better relationships and reduces the costs associated with overtime and high worker turnover.
Leverage Next-Generation Technology in CRE Energy Management
CRE energy management is the ultimate way for CRE providers to get more value from their facilities and facility assets. Although modern systems are intuitive and designed to be turnkey operations, having a trusted partner in implementing and managing your energy program can increase ROI even further.