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A U.S. Department of Energy study
released in May 2017 found that operating
expenses at green properties were 17.6%

lower than at conventional properties.

This iconic building maintains typical weekday operating Companies that take that into account now will perform
hours of 6 a.m. to 7 p.m. and is cooled by two steam better over the next five years.”
chillers and two electric chillers with variable frequency
drives, combined with a primary/secondary chilled water Given the variables involved, it is challenging to estimate
system that has variable speed pumps. The interior how much an energy-efficiency upgrade will boost a
spaces in the building are served by variable volume air property’s value in the long run. What is clear, however,
handling units. is that owners and managers have an unprecedented
menu of tools at their disposal to improve building
In 2016, the building’s owners installed an intelligent performance.
HVAC energy optimization platform. To maximize
efficiency, the system sends temperature, pressure and From solar to smart thermostats and other energy
speed set-point adjustment signals to fans, pumps and efficiency options, technology is evolving to raise property
chillers every 30 seconds. value and profits by reducing energy costs and attracting
tenants. By becoming more sustainable, they’ll also
After initial installation and three seasons using the reduce risks from regulatory or investor demand as well.
platform, the annualized estimated savings for electricity The key is to find the right solution for your building to be
and steam totaled 7% of HVAC spend, more than 24% smarter into the future.
higher than initially proposed and equating to savings
of approximately $0.10 per square foot. The return on John Salustri is editor-in-chief of Salustri Content
the owner’s upfront $159,270 investment was 99%, with Solutions, Inc., a consultancy focused on enhanc-
simple payback achieved in 1.2 years and a five-year ing the web and print content of clients. He was
internal rate of return of 74%. founding editor of GlobeSt.com, where he oversaw
15 journalists and guided the daily and strategic
Investment Imperatives operations of the website. Prior, he was editor of Real Estate
Amid a groundswell of new opportunities in energy Forum magazine. Salustri is a four-time winner of the National
efficiency, embracing innovation in this area is becoming Association of Real Estate Editors’ Award for Excellence in
an investment imperative. A growing number of corporate Journalism. He may be reached at salustri@optonline.net.
occupiers are folding sustainable operations into their
mission statements, and it is a major consideration for Matt Eggers leads the development of software for
landlords. energy management and high performing
buildings as vice president of Yardi Energy. He
“A company acknowledging sustainability in their mission previously held executive and leadership positions
statement or strategy is often an effect,” says Eggers. at Tesla Motors, Sunrun Inc. and Bloom Energy.
“The cause may be the groundswell of investors who are He serves on the board of Ecology Project International, the
demanding increased sustainability. They see increasing advisory board for the Duke University Center for Energy,
consumer and employee demand for sustainability, Development and the Global Environment, and IREM’s sustain-
and many believe that carbon regulation is inevitable. ability advisory board. Contact sales@yardi.com for more info.

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