Energy is the single largest operating expense for most property asset companies. But energy management is often overlooked; particularly by asset managers who are focused on improving tenant relations and increasing returns from their property portfolio instead. When it is time to look at energy reports, they are often convoluted and cobbled together from disparate sources. Simply put, energy isn’t the first thing asset managers look to when trying to maximize the value of their portfolios.
But it should be. With a fully integrated energy management solutions in place, asset managers stand to benefit in four key ways.
Streamlined and simplified data collection
Part of the reason energy management gets overlooked is the laborious nature of data collection. When staff has to manage all aspects of properties, collecting utility information from a number of different sources isn’t high on the task list. With an automated data analytics tool in place, energy invoice data becomes much more manageable and implementing cost-saving strategies becomes a realistic goal.
A clear view of cost saving initiatives
Once you have organized and accurate data, you can start using it to support your business decisions and find new opportunities for cutting costs and increasing revenues. Even the smallest changes can save hundreds of thousands of dollars. Data might show, for instance, that shifting the startup time back one hour could save significant dollars due to lower energy demand charges, without having a negative impact on tenants.
Meet energy and greenhouse gas reduction targets
Increasingly strict greenhouse emission targets are being put in place across the US and the world. Meeting targets isn’t just important for regulatory reasons. Both the profitability and value of assets can increase as a result of investors targeting ‘green’ properties. With an energy management solution, greenhouse gas monitoring and reporting can be automated. This takes work off asset managers’ plates and provides a clearer picture of where properties stand when it comes to energy efficiency. With a thorough consultation and assessment, strategies can also be implemented to leverage on-site energy generation to reduce demand from the grid, cut costs, and optimize property revenues.
More cost-effective pricing
Working with an energy management expert offers asset managers the opportunity to secure prices that match business goals, leverage energy data to optimize product/term selection, and fully capture the value of energy conservation measures and their impact on consumption, demand, and capacity tags. Obtaining energy at the most competitive prices is an ongoing task, however. Full-time monitoring of the market, included in energy management solutions, will help to determine the optimal provider and contract length for your portfolios now and in the future.