This would demand a price rise if the transition to remote work locations had not depleted demand by so much. The Financial Times has warned of a looming “slump” as property valuations crumble. Goldman Sachs has rung the alarm.
It is a difficult sight to look upon. Commercial property owners determined to stay afloat are looking for ways - any way - to reduce their costs. They might search for alternative clients to fill their unwanted office space. They might even consider adapting their properties for other means that remain in demand.
Truth is that one of the easiest and most effective ways commercial property owners can reduce their costs is by modulating their energy consumption. Some might shy away at this point, as there’s a general assumption that lower energy consumption comes at the expense of tenant comfort.
Energy consumption seems flexible within a limited range. That’s how it has always been, after all. But new technology and advanced services available today can change that.
Starting from zero
Advanced, smart devices that monitor a property’s consumption can now identify the hidden inefficiencies in its energy use. Whereas traditional meters treat the entire building as a single funnel of consumption, these state-of-the-art devices provide measurements with more detail.
Once integrated with buildings’ own control systems, these small devices can assess when electricity usage in non-critical electrical plants and equipment such as pumps, fans and air conditioning chillers can be subtly modulated, without impacting performance whatsoever. Ultimately, this allows property owners to understand their properties' true electricity requirements, and offers them the opportunity to adapt usage accordingly.
Stay in control of everything
These same devices can also use artificial intelligence and internet of things (IoT) capabilities to determine how, when and where to reduce energy consumption based on their calculations. Commercial property owners who might have once avoided adjusting a building’s consumption using expensive maintenance engineers can now receive the same benefit with only a small gadget.
Some services will install and manage these devices at no up-front cost to the property owner. They operate silently and intelligently, as they are supported with software that is designed to avoid disrupting the quality of the environment in the building.
There’s even the opportunity to earn revenue for using them through the UK’s demand-side response scheme (DSR). In short, DSR programmes offer financial rewards to companies that reduce their energy consumption during periods of low supply (which happens more often on grids supported by renewable energy sources.)
The benefits of embracing change
The potential to save money on maintenance costs is enormous. One of OakTree Power’s clients, the law firm Pinsent Masons, will save £30,000 within its first year. Others could save between £28k to £100k - electricity savings and revenues combined.
The best part is that the technology ultimately improves precious BREEAM ratings and can be applied to a wide range of properties without limitations. Properties running on older building management software might require a minor upgrade to enable it, which can be managed with the support of a partner.
Commercial property owners will need to develop new strategies to remain profitable in the new world. They’re facing new challenges that only innovative solutions could respond to. Addressing their energy consumption could determine their future success. DSR is on stage to play an important role in that.
