It’s never too late to give an existing structure a greener lease on life. Retrofits offer commercial building managers an opportunity to improve efficiency and drive cost savings. If you’re just getting started, the four retrofit methods below are a great starting point for sustainable practices. Observe, benchmark and improve your energy consumption. Monthly bills are not enough to accurately determine the efficiency of a commercial site. Retrofits connected to the internet of things (IoT) provide real-time insights into energy consumption. Explore usage based on subleased portions or the entire building. What’s best, you can implement IoT retrofits at a speed that matches your budget. Commercial managers often begin with submeters. Submetering offers insights into building performance while facilitating average savings of 2-5%. Implement supportive technology such as energy benchmarking to help you meet compliance regulations for ESG platforms like ENERGY STAR®. Promote water efficiency regardless of your location. Dry, arid regions have long prioritized end-user water conservation. Interest has grown nationwide: efficiency offers economic benefits to all managers regardless of the site’s location. Retrofits for cooling towers and chillers are a great place to implement efficiency measures. Such retrofits will have the most notable impact since they can consume tens of thousands of gallons each day. Smaller projects, such as fixtures, may follow. Streamline HVAC operations to reduce waste and increase comfort. The efficiencies of HVAC systems decline naturally over time. Promoting optimal operation and occupant comfort requires consistent maintenance and smart controls. Networked controllers and cloud-based management software enable you to monitor and manage usage. Smart thermostats and monitoring technology can offer up to 30% energy savings while slashing future maintenance costs. Improve indoor air quality (IAQ). Americans spend about 90% of their time inside. Indoor air contains a higher concentration of...

We compiled predictions from expert observers to get a sense of what’s in store for the real estate industry in 2022. Excerpts follow. Foreseeing a ‘whirlwind housing market’ Pandemic-ignited home-buying, driven by supply shortage and low mortgage rates, shows no signs of slowing down. “We expect a whirlwind 2022 for the housing market,” says Danielle Hale, chief economist for Realtor.com, with home sales increasing 6.6% and home prices 2.9% above 2021 highs despite a small uptick in inventory. While affordability, rising interest rates, and supply and labor shortages will continue to pose challenges, “home buyers should find the coming months to be more advantageous than any time in 2021. While sellers remain in a very strong position, price stabilization and the continuation of competitive interest rates may bring some welcome relief to buyers in the new year,” notes Nick Bailey, president of RE/MAX LLC. Home living tops investment U.S. real estate remains among the most attractive and largest asset classes for investors and families alike. “For the second year, homeowners have told us that their main reason for taking on projects around the home is to better meet their needs. Before the pandemic, return on investment was the primary motivation. This is a huge shift and something we know will continue throughout 2022, especially as people continue to spend more time at home,” says Robert Morgenstern, principal of New York City-based Canvas Property Group. Tech amps up Property management technology’s capabilities and use will continue to grow for reasons of convenience and social distancing. “With the right data collection tools and overall acceptance by industry professionals, real estate will greatly benefit from the increased use of technology in 2022,” according to Paul Ryll, owner of Oscar Mike Mobile Appraisers of Greenville, S.C. And with...

Global energy demand surpassed pre-COVID 19 levels in 2021. Energy was the top-performing S&P 500 sector that year. With energy demand still on the rise, the energy sector stands to grow even more in 2022. The Balance Sheet sampled expert predictions of what’s ahead for renewables and the rest of the energy industry in 2022. We will keep tabs on key developments throughout the year. Economist Intelligence, a policy analysis and consulting group, predicts that global energy consumption will rise by 2.2% in 2022 as economies recover from the pandemic. All types of energy except nuclear power will benefit, although “energy companies will need to undertake an urgent review of their strategies next year, as governments and investors ramp up pressure to cut emissions.” Kathryn Downey Miller, president of energy industry analysis firm BTU Analytics, echoes that assessment. “Despite a strong profit outlook heading into 2022, enormous pressure is coming from providers of capital and other stakeholders to evolve business models for the new energy economy,” she said in an editorial published in December. That pressure is a principal reason that “renewable energy growth is poised to accelerate in 2022, as concern for climate change and support for environmental, sustainability, and governance considerations grow and demand for cleaner energy sources from most market segments (residential, commercial, and industrial consumers) accelerates,” according to an energy industry outlook report prepared by Deloitte. Renewable generation expands Renewables were the only energy source for which demand increased in 2020, according to the International Energy Agency. Renewable electricity generation in 2021 expanded by over 8% in 2021. Record levels of wind and solar generation additions are expected to come online in 2022, according to S&P Global Market Intelligence, which studies energy markets. The adoption of renewable energy sources will be...

It started with Green Lights. That was the U.S. Environmental Protection Agency’s (EPA’s) inaugural Climate Partnerships Programs initiative in 1991. Since then, Climate Partnership Programs has engaged tens of thousands of public and private organizations, generated billions of dollars of investments in energy efficiency and clean energy, saved American consumers more than $500 billion in energy costs and prevented more than 6 billion metric tons of greenhouse gas emissions. Green Lights – which encourages organizations to use energy-efficient lighting technologies in their offices, factories, stores and warehouses – is one of more than two dozen Climate Partnership Programs. Vital to meeting national greenhouse gas reduction, carbon-pollution free electricity and net-zero emissions targets, the programs include: ENERGY STAR®, which identifies energy-efficient products and practices for consumers and businesses in 33 industrial sectors and 840 utilities. Since 1992, ENERGY STAR, managed jointly by the EPA and the U.S. Department of Energy, and its partners have helped American families and businesses save 5 trillion kilowatt-hours of electricity, avoid more than $450 billion in energy costs and achieve 4 billion metric tons of greenhouse gas reductions. In 2019 alone, ENERGY STAR drove reductions of 220,000 short tons of sulfur dioxide, 220,000 short tons of nitrogen oxides, and 27,000 short tons of fine particulate matter. ENERGY STAR product sales exceed $100 billion annually.The State and Local Climate and Energy Program, which offers free tools, data and technical expertise to help state, local and tribal governments achieve their environmental, energy, equity and economic objectives.The Green Power Partnership, a source of information and technical assistance for companies using green power. The program has helped prevent nearly 280 metric tons of greenhouse gas emissions.Methane Emissions Reduction Partnership Programs, which promote the cost-effective recovery and use of methane by sectors such as agriculture,...

The Advanced Research Projects Agency-Energy, which performs R&D for the U.S Department of Energy, sponsors initiatives by businesses and academic institutions to improve energy efficiency.  Here’s the latest of our periodic summaries of active ARPA-E projects. Creating a new version of wood Alternative materials creator InventWood of College Park, Md., is working to develop lightweight 3D corrugated honeycomb structures to replace metal counterparts. 3D wood has one-third the density and one-fourteenth the cost of aluminum with the same mechanical strength. And the proposal could produce a big sustainability benefit as well – a 90% reduction of CO2 emissions in the manufacturing process. Adding the human touch to energy savings About 75% of U.S. homes have smart meters, according to Smart Energy International. While giving homeowners greater access to their energy-use data is a positive step, a team Stanford University researchers believes that optimizing energy and cost savings with that information will “require an understanding of human behavior.” Using human behavior to optimize energy and cost savings could “transform the way Americans interact with our energy-use data,” the team says. A custom-built web-based platform collects historical electricity data for experiments to learn what triggers homeowners to respond. The experiments include financial incentives and a calculator that illustrates the potential savings of efficient appliances. Once completed, the platform and new behavior experiments could help homeowners save energy, improve their energy efficiency and reduce utility bills. Making the power grid cleaner ARPA-E is funding four projects to develop technology to remove sulfur hexafluoride, a gas that’s utilized as an electrical insulator and arc suppressant, from the U.S. power grid. It’s a more potent greenhouse gas than carbon dioxide. Proposals from the funding recipients – the University of Connecticut, Georgia Tech, GE Grid Solutions of Charleroi, Pa., and...

Have you been navigating ENERGY STAR® Portfolio Manager on your own? There is a better way. Get to know the ENERGY STAR Benchmarking Team for simplified and improved reporting. Meet your ENERGY STAR reporting experts ENERGY STAR Benchmarking Team is located in the Yardi Atlanta and Colorado Springs offices to conveniently serve clients in different time zones. Yardi’s ENERGY STAR team consists of eight experts in all aspects of ENERGY STAR reporting and the many systems that these reports feed. The department is annually recognized as an ENERGY STAR Partner of the Year and received the Sustained Excellence Award in 2021. The team supports client use of ENERGY STAR Portfolio Manager, a U.S. Environmental Protection Agency system.  The team assists with regulatory compliance, finance and sustainability reporting requirements. They collaborate with clients to setup and maintain portfolios of properties in Portfolio Manager. This includes syncing data from ENERGY STAR with reporting systems designated for each property.  The existence of the department embodies part of the Yardi mission statement, “take care of our clients.” Randy Moss, senior team leader, CSD, has been with Yardi for nine years. He joined Yardi as part of a larger acquisition but has continued on due to company culture. “Yardi is a great place to work and encourages everyone to seek ways to better take care of our clients,” says Moss. “ENERGY STAR Benchmarking started as a client request and today serves over 4,000 properties for Yardi clients. It is very rewarding to support our clients using ENERGY STAR for reporting to all the different systems needed.” Wait, Yardi offers support for ENERGY STAR Portfolio Manager? Yep! The team works synergistically with other departments within Yardi to support clients’ reporting needs. The team works with utilities, industry groups and regulators...

On Oct. 6, Energy Efficiency Day addressed a topic with vast local, regional, national and global implications throughout the year. Yardi was pleased to observe the event with more than 800 local governments, universities, organizations, corporations and utilities. This year’s event coincided with the 30th anniversary of the U.S. Environmental Protection Agency’s (EPA’s) climate partnerships program, a collaboration between private and government organizations that has prevented more than 6 billion metrics tons of greenhouse gas emissions – more than all U.S. carbon dioxide emissions in 2019. “Energy efficiency is the cheapest, quickest way to meet our energy needs, cut consumer bills and reduce pollution. Energy efficiency is also an economic engine, supporting over two million jobs nationwide in manufacturing, construction and other fields,” according to the Energy Efficiency Day organization’s website. Energy Efficiency Day, an early-October fixture since 2016, promotes awareness by encouraging home and business energy audits, energy-saving competitions, success story sharing using the #EEDay2021 hashtag and more. Participants seek to promote easy-to-implement measures for businesses and individuals, including: Scheduling regular inspections for refrigeration equipment, furnaces, heat pumps and other equipment.Turning on computers, monitors, printers and fax machines only when they’re needed.Locating and sealing air leaks around the house. Even hidden drafts can hurt your energy efficiency.Staying cool in school. Did you know that the average 200-square-foot dorm room can generate as much greenhouse gas pollution as the tailpipe emissions of a car driven more than 2,000 miles? Consider setting rooms with individual temperature control a few degrees higher to reduce the cooling system’s energy use.Purchasing home appliances carrying the ENERGY STAR® label, which certifies adherence to strict EPA energy-efficiency standards.Turning off lights when leaving the room and consider swapping regular light bulbs for LEDs.Running ceiling fans clockwise and at low speeds during...

Are energy efficient features the norm or the exception in your state? How can that impact your property performance and marketing? We’ve got the inside scoop for you as we dive into the latest report on energy efficiency by state. WalletHub report offers insights into energy efficiency by state Personal finance company WalletHub released a report that gathered and analyzed data from government agencies in the continental U.S. Researchers considered data on automobile and building efficiency. States were then ranked in those categories, as well as overall efficiency. Operating within a high-efficiency state has its benefits. The report concludes that household and community-level increases in energy efficiency “decrease long-term costs for everyone.” Increased efficiency translates into energy savings and more resilient buildings and cars as well.   Best and Worst Overall Utah ranked #1 in overall energy efficiency, receiving a score of 83.91 points out of 100.  New York was hot on its tail with 82.05 followed by Massachusetts and Minnesota. Rhode Island wraps up the top five most efficient states with 76.45 points. The south is home to the least energy efficient states, with South Carolina leading the pack with a 21.49. With increasing efficiency comes West Virginia with a 24.20 proceeded by Alabama, Tennessee, and Louisiana at 31.22. Best and worst housing efficiency Among residential properties, Utah re-appears on the list as most efficient at 83.91. This time, it is trailed by Minnesota, New York, Colorado and Vermont. South Carolina also reappeared on this list as the worst in-home energy efficiency. Alabama, Tennessee, Louisiana and Georgia were also nestled at the bottom of the list as well. While local incentives impact efficiency measures during development and construction, there are other ways to promote efficiency. Building operators can improve building efficiency through ENERGY...

The residential real estate sector is going to see a few changes in the near future as businesses continue to open up their office environments, travel and immigration resume to pre-pandemic levels and Canadians gain a sense of confidence in venturing out of their homes on a more regular basis. Though human interactions will see a subtle shift from the pre-pandemic era, how residents use their living spaces will continue to evolve. This is an opportunity for real estate companies to re-evaluate the ways in which they manage their properties. Regardless of their approach to marketing, resident relations and other operations – the value of a viable energy strategy is gaining importance in the Canadian real estate sector. Residential property owners can increase asset values, boost stakeholder satisfaction and ensure compliance by adopting smart energy consumption practices. That’s best done strategically, especially as costs remain under heavy scrutiny and ESG accountability assumes ever-greater importance. First step: Utilize utility data to minimize costs Understanding and documenting energy consumption across a portfolio should be the first step in building a value-add energy strategy. Why? Because this operational area is one of a property’s largest controllable operating expenses. Understanding and harnessing utility data can make a property more valuable, more likely to retain residents, more easily marketed for sale, more compliant and more attractive to prospective tenants and investors and less likely to require concessions to rent. Advanced automated utility expense management systems also reduce duplicate payments, late fees, system interface errors and inaccurate spend measurements. They replace the cumbersome process of tracking consumption in excel, and wading through stacks of paper utility bills with digital invoice transmission and automated usage validation. Along with creating a single solution for invoice tracking, payments, budgeting and reporting, these systems...

Even as pandemic-driven lockdowns and stay-at-home mandates curtailed energy consumption in 2020, organizations in all types of industries remained focused on impactful conservation initiatives. Here’s a look at some of the companies that joined Yardi in receiving a 2021 ENERGY STAR® Partner of the Year Sustained Excellence Award, the highest honor bestowed by the U.S. Environmental Protection Agency and the U.S. Department of Energy for initiatives that reduce energy consumption and mitigate climate change. BENTALLGREENOAK. Along with achieving ENERGY STAR certification for 81 properties, the Seattle-based global real estate investor continued benchmarking its assets’ sustainability performance against internal best practices and peers. BentallGreenOak also used ENERGY STAR metrics to measure the success of its energy efficiency strategies. FOOD LION INC. The Salisbury, N.C.-based retail grocery store chain expanded its LED lighting retrofit program to 32 stores, saving more than 9.2 billion BTUs annually. It also earned ENERGY STAR certification for 919 stores, which encompass 89% of its portfolio. HEXION INC. The Columbus, Ohio, producer of thermosetting resins, coatings, adhesives and specialty resins executed 52 energy projects that produced $2 million in savings. It also conducted treasure hunts at 23 sites that identified 131 potential projects. The Columbus, Ohio, company’s energy management program has reduced energy intensity by 28% and saved $14 million in costs since 2014. INTERTAPE POLYMERGROUP INC.  The Sarasota, Fla., manufacturer of paper and packaging products achieved a 6.8% reduction in energy intensity over 2019, part of energy savings equivalent to $6.4 million since 2009. The company also participated in several ENERGY STAR certification, Challenge for Industry and Find the Treasure activities. MERCK & CO. INC.  The pharmaceutical and healthcare company issued a letter of intent to purchase 60 MW of solar energy, matching the amount purchased in 2019. The Kenilworth, N.J.-based...

What would make affordable housing more affordable? The implementation of cost-saving, sustainable features. Unfortunately, clean tech faces an uphill battle with adaptation in the industry. A national incubator aims to change that. Wells Fargo presents a program that promotes innovation in housing by assisting clean tech companies with an accelerated path to market. Three new residential housing technology companies just joined the incubator this spring—heading to a market near you. 3 The challenge with green innovation in affordable housing Innovative tech startups can have the amazing ideas and the promising products, but they struggle to find funding. Unproven technologies are often seen as a risky investment. The real estate industry is notoriously slow at adapting even proven technologies, which makes the challenge twice as formidable for green building startups. The journey to market is formidable for green startups, but not insuperable. Innovation Incubator (IN2) supports the research and development of the most promising startups. As a result, affordable housing builders and developers can feel more confident about investing in new sustainable housing technologies. IN2: the solution that fosters more solutions IN2 is a dreamchild. It unites the funding and industry savvy of the Wells Fargo Foundation with the research specialists and technology of the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). The program is part of Wells Fargo Foundation’s $1 billion commitment to affordable housing. Startups selected by IN2 receive $250,000 in non-dilutive funding to hone their innovations. They work side-by-side with experts at NREL and the Donald Danforth Plant Science Center. Such collaborations give startups access to cutting edge research and testing. Startups also receive priceless networking opportunities, and their work is amplified throughout the industry.  Since 2014, the program has furnished product validation for 46 companies via NREL or the...

The following information is courtesy of the Energy Information Administration, a statistical and analytical agency of the U.S. Department of Energy that collects, analyzes and disseminates energy information. Post-COVID consumption lags The U.S. will likely take at least a decade to return to 2019 levels of energy consumption and carbon dioxide emissions due to the impact of COVID-19 on the economy and global energy sectors. “The pandemic triggered a historic energy demand shock that led to lower greenhouse gas emissions, decreases in energy production, and sometimes volatile commodity prices in 2020,” says Stephen Nalley, the EIA’s acting administrator. Around the world, global demand for petroleum products in 2020 fell by 9% from the previous year. Just how long it will take production and consumption levels to return to their pre-pandemic levels depends on a range of factors including the pace of economic recovery, advances in technology and government incentives. “It will take a while for the energy sector to get to its new ‘normal,’” according to Nalley. Battery power charging up A significant number of battery energy storage systems will be added in the U.S. between now and 2050, at which time 59 gigawatts (GW) of battery storage will serve the power grid. Falling battery costs, growth in non-dispatchable renewables (such as solar and wind, which can’t be turned on or off at will) and tax credits are the key drivers of the capacity expansion. Wind becomes a force In 2019 and 2020, developers in the U.S. installed more wind power capacity than any other generating technology. Wind turbine capacity additions in 2020 totaled 14.2 GW, surpassing a record that had stood since 2012. The impending phasing out of the full value of the production tax credit spurred investments in this technology. Congress extended...

Buildings account for 72% of the United States’ electricity use and 40% of the country’s carbon dioxide emissions each year. The Advanced Research Projects Agency-Energy, which carries out R&D for the U.S Department of Energy, sponsors initiatives by businesses and academic institutions to improve buildings’ energy efficiency. Here’s a summary of some active ARPA-E projects. Promoting a healthy cold According to ARPA-E, 5% of CO2 emissions come directly from air conditioning, which uses refrigerants that are greenhouse gases. American Superconductor of Ayer, Mass., is developing a freezer that doesn’t rely on harmful refrigerants and would operate more energy-efficiently than conventional systems. American Superconductor proposes to use helium gas as the cooler’s refrigerant, superseding liquid refrigerants that are eventually pumped out to the external environment. The eventual goal is the cost-effective mass production of high-efficiency freezers that do their job without pollution-generating refrigerants. Efficiency in motion A team at Boston University is developing an occupancy sensing system designed to estimate the number of people in commercial spaces and monitor how that number changes over time. The proposed system would generate occupancy estimates using advanced detection algorithms that interpret data streams from sensors and cameras. The occupancy data would enable the building control system to manage the heating, cooling and air flow to maximize building energy efficiency and optimize comfort. This could go a long way in making Boston office space, indeed office space across the world, more efficient. The project could “dramatically reduce the amount of energy needed to effectively heat, cool and ventilate buildings without sacrificing occupant comfort,” ARPA-E says. New pane, new gain Single-pane windows that are present in many buildings don’t insulate as well as double-pane units. Unfortunately, replacing them with newer, more efficient windows isn’t always feasible because of costs, changes...

Here’s a roundup of recent reports from the Energy Information Administration, the statistical and analytical agency within the U.S. Department of Energy: Wind power flies high in 2020 Project developers expect more than 23 gigawatts of wind turbine generating capacity to come online in the U.S. in 2020, far more than the previous record of 13.2 GW added in 2012. The impending phase-out of the full value of the U.S. production tax credit at year’s end is leading to more capacity additions than average this year, just as previous tax credit reductions led to significant wind capacity additions in 2012 and 2019. Texas has the most wind turbine capacity among states, with 29.1 GW installed as of August 2020 and another 4 GW expected by the end of the year. Wind’s share of U.S. electricity generation increasing from 7.4% in 2019 to 8.8% in 2020 — more than any other renewable electricity generation source. That share is expected to reach 10.3% in 2021. CO2 emissions reach lows In 2020, carbon dioxide emissions from the U.S. energy sector could be 11% lower than in 2019, according to data collected through August and estimates through December. CO2 emissions are expected to fall by 19% for coal, by 13% for petroleum and by 2% for natural gas. Many of this year’s changes in energy-related CO2 emissions are attributable to COVID-19, including working from home, stay-at-home mandates, closed or limited operating hours for several types of businesses and travel restrictions. In April, monthly U.S. energy consumption fell to a 30-year low and emissions reached a record low. Winter bills holding steady U.S. households that primarily use natural gas or electricity will have slightly higher energy expenditures this winter, with households using propane spending 14% more and those relying...

Full-service real estate company LBA Realty is continuing its portfolio-wide partnership with Yardi Pulse® as the company implements a Smart Building Program to enhance their sustainability strategy. LBA and Yardi® conducted an initial proof of concept pilot at a single property. In January 2019, LBA Realty adopted a phased approach to roll out Meter Insights and Fault Detection to eleven office properties in four different states. Leveraging pulse modular capability, these initial solutions provide real-time electrical meter monitoring and analytics, as well as HVAC fault detection and diagnostics. This allows the LBA engineering team and Yardi’s consulting services to identify hidden performance issues including extended run time, overlap in HVAC mode conditions and an inefficient sequence of operations. LBA now receives timely and accurate energy use data for 5.9M square feet of their office properties. Year-to-date, the program has resulted in energy use reduction of 16.2M kWh, which equates to savings at $0.32 per square foot. After gathering quantifiable results, LBA is now entering the second phase of implementation, Pulse Building Optimization. “With Pulse Building Optimization representing our artificial intelligence software, we look forward to realizing our vision of bringing intelligent buildings to life,” said Perry Schonfeld, principal and chief operating officer of LBA. “It is exciting to see the progress LBA Realty has made with a phased approach to implementation and the value of their incremental steps. We foresee continued success of LBA’s energy platform and growth of the Yardi-LBA partnership,” said Akshai Rao, vice president at Yardi. Download a brochure to learn more about the Yardi Pulse...

COVID-19 has had a jarring impact on commercial real estate in the form of health risks, stunted growth prospects, permit and construction delays, reduced income for property owners and the acceleration of e-commerce at the expense of physical stores, among other disruptions. The pandemic precipitated what global management consultant firm McKinsey & Company calls “an unprecedented crisis for the real estate industry.” What will the CRE landscape look like when the pandemic fades? For one thing, new building codes designed to limit the risk of future pandemics could affect standards for HVAC, square footage per person and amount of enclosed space. Office building tenants will almost certainly be driven “to look beyond their traditional building preferences. In this new environment, tenants will gravitate towards the properties that best solve for flexibility, adaptability, and well-being,” according to Erin Saven and Evan Danchenka of Gensler, a global architecture, design and planning firm. Maria Sicola, a founding partner of real estate planning services provider CityStream Solutions and sales and training consultant Integrity Data Solutions, believes tenants will likely make their space “more personalized and less communal – we will likely not return to all-private offices and fancy conference rooms. But all space – personal and meeting — will need to be viewed with more breathing room.” And, of course, cleanliness will command more attention than ever. Commercial Property Executive predicts that “some products and techniques that have been used in medical office buildings and in hospitals are going to be brought to the office sector,” such as microbe-resistant door handles and elevator buttons and sanitation with ultraviolet light. Amenities as differentiators Building owners and developers, for their part, would be well advised to explore “new real estate design strategies that can differentiate them from the competition and...