How to Increase NOI with EIS
Among recent approaches to increasing NOI without major CAPEX, better energy management has taken a prominent role.
There are plenty of ways to tackle energy management, but one common misstep I see asset managers making is investing heavily in a top-flight building management system (BMS) and expecting it to do the energy management for them.
While your BMS may be expertly controlling your facilities, there's still a piece missing: real-time actionable information. Even if real-time monitoring is included with your BMS, the presentation of that data often makes it difficult to glean actionable insights from.
Using energy intelligence software (EIS), on the other hand, can help determine precisely where your buildings' inefficiencies lie, lowering operating expenses and increasing NOI. Here are three strategies EIS allows you to use that quickly boost NOI without requiring big up-front investments.
Target Demand, Not Just Consumption
While decreasing the amount of energy (kWh) your buildings use over a billing cycle is an important way of increasing NOI, decreasing your buildings' peak energy demand (KW) is an often overlooked way to significantly reduce your demand charges, which can be as much as 30% of your bill.
EIS mines data across your portfolio to identify buildings with the highest peak demand, and identifies potential savings under different demand reduction scenarios. Your director of facilities can then prioritize the best opportunities across your portfolio, and work with his team to identify the appropriate demand reduction targets. He can set up alerts for his building chiefs that will automatically warn them when their buildings are using more KW than they should be, giving chiefs time to react before demand charges accrue.
Turn ENERGY STAR Scores and Disclosure Policies Into a Competitive Advantage
The rapid increase in energy disclosure laws has created a serious challenge for larger firms. Keeping up with the necessary data management and reporting requires significant time investments. For some firms, the outcome of all this work is damaging to NOI: low ENERGY STAR scores have become a serious detractor for potential tenants and investors.
Top firms like DTZ are using EIS to centralize their energy and water consumption, and automate the data exchange with ENERGY STAR's online portal Portfolio Manager, mitigating the risk of fines or damage to their reputation. Additionally, EIS helps them benchmark their buildings against the competition, allowing them chart improvements and show tenants how they stack up.
Give Your Facilities Director the Tools to Optimize Building Performance
Optimized start-ups and shut-downs can considerably lower building overhead and boost NOI over the course of a year. But optimization requires the ability to compare day-to-day usage against an energy baseline, something EIS automates for your facilities director and his team.
In many cases, buildings are set to start up and shut down their HVAC at the same time day after day, regardless of outdoor temperature fluctuations and occupancy patterns. This can generate a significant amount of energy waste. But with EIS, your facilities director and his team can easily optimize HVAC start-up and shut-down schedules without compromising occupant comfort. Your facilities director can also use EIS to scan your portfolio for buildings that aren't properly shutting down overnight and on weekends. And after implementing smarter HVAC scheduling, EIS will calculate savings from the improved efficiency for you.