Summer is heating up, but that doesn’t mean you should be sweating buckets when it comes to paying for HVAC. Property managers, owners and engineers are constantly on the lookout for new ways to save energy and cut HVAC costs. With as many as 80% of tenants switching to hybrid work schedules, according to CBRE, finding new ways to improve your bottom line is more important than ever.
In this article, you’ll learn the top four ways property management teams are saving on HVAC. So, stop letting energy consumption burn a hole in your wallet, and let’s dive in!
In this article:
- How much does a new HVAC system cost in 2024?
- Why routine HVAC maintenance is essential
- Don’t get stuck with an HVAC imbalance
- Is it worth discussing HVAC use with my tenants?
- How On-Demand HVAC software can help
How Much Does a New HVAC System Cost?
The cost of a new HVAC system varies depending on building size and geographical region. However, CRE teams managing larger office buildings should expect to fork out between $28 and $33 per sq. ft. For a building of 250,000 sq. ft., that’s $7 million!
It goes without saying that most property teams won’t have to replace their whole system all at once. But at a $7 million price tag, making sure your equipment functions optimally throughout its lifetime will greatly improve your margins. This leads us to our tips for saving on HVAC.
1. Lower HVAC Costs with Scheduled Routine Maintenance
Want to save 5 to 20% on your building’s annual energy cost? Who doesn’t? The U.S. Department of Energy estimates that commercial real estate companies can save 5-20% annually on energy bills by following operations and maintenance (O&M) best practices.
Sticking to a regularly scheduled HVAC maintenance plan is as important as visiting your dentist every six months. It might be a pain in the ol’ kiester, but fail to do it and you’ll be stuck with worn down parts and forking out wads of cash for replacements. (Not to mention the agonizing pain you’ll have to endure in the summer or winter.)
Scheduled HVAC maintenance is essentially preventative care: you do it now to save you from the expenses in the long run. By keeping to a regular schedule, property teams can better identify and troubleshoot minor issues before they become costly.
Short- and Long-term Savings with Regular HVAC Maintenance
With routine HVAC maintenance, commercial real estate (CRE) companies reduce both short-term and long-term HVAC costs. Here’s how:
- Short-term Costs– By carefully performing routine maintenance to your HVAC system, you will ensure it operates at maximum efficiency. In turn, less energy will be used to heat and cool the building.
- Long-term Costs– You will increase the lifespan of your HVAC components. Longer life means greater cost savings over time.
How Often Should an HVAC be Serviced?
Many property teams elect to perform routine maintenance, sometimes referred to as preventative maintenance, in the spring or autumn. They do this to ensure the system in working order come summer and winter when temperatures are at their peaks.
Additionally, it’s important to refer to the manufacturer recommendations provided to you. The manufacturer provides information on the expected lifespan of their equipment, often ranging from 15 to 25 years, depending on usage and maintenance.
Though routine maintenance doesn’t guarantee that your equipment will last longer, it will ensure that it’s in optimal condition, saving you from spending more on electricity.
2. Balance your HVAC system
You walk to your office, swing open the door, and are greeted by a gust of frigid, chilling you to the bone. For a moment, you think you’re living in Northern Canada in the winter. Meanwhile, down the hall, your colleague is sweating like a toucan in Costa Rica. Why? The building’s HVAC system isn’t balanced.
In commercial buildings, maintaining consistent comfort can feel like a high-stakes juggling act. This is where balancing your HVAC system becomes not just a technical necessity but a crucial element of cutting costs. By fine-tuning the airflow, property teams can save.
How to balance your HVAC system correctly
The frequency of balancing an HVAC system depends on several factors. These factors include:
- Type of building
- The frequency and duration with which a system is run
- Changes in the building’s layout or occupancy
Generally, when a new HVAC system is installed, a balance is performed. However, as the building ages and changes to the building occur, HVAC balance can be thrown off. For example, adding or removing walls and upgrading major system components – like new ductwork – may also require the HVAC to be rebalanced. Class A CRE buildings or others with high occupancy rates, may benefit from rebalancing biannually or quarterly.
Why’s it important?
There are several good reasons to balance an HVAC system. Noticeable increases in energy bills are among one of the biggest culprits. However, it’s important that property teams take a more proactive approach to prevent balance issues.
Additionally, an HVAC system that is frequently not balanced will negatively affect tenant satisfaction. Tenants will observe uneven heating or cooling, discomfort and inconsistent airflow.
Older systems may require more frequent balancing to maintain efficiency as components wear out and become less effective. The specific use of the building (e.g., office space, retail, industrial) can influence how often balancing is needed, with more intensive uses typically requiring more frequent checks.
By adhering to these guidelines and adjusting the frequency based on specific building needs and conditions, property managers can ensure their HVAC systems operate efficiently, providing comfort and cost savings over the long term.
3. Educate tenants about energy use and conservation
The relationship property managers have with their tenants is key to a healthy workplace. Additionally, initiating an open dialogue about energy efficiency and conservation can help everybody’s bottom line.
By fostering a culture of energy awareness, property managers can help tenants reduce their energy consumption, leading to lower operating costs and a smaller environmental footprint. Here are some effective strategies to educate tenants about energy use and conservation:
Provide informative materials
Distribute digital content like brochures, posters and tips for saving energy. Highlight actions such as using natural light and turning off lights and equipment when not in use. Additionally, adjusting thermostats to energy-efficient temperatures will help all parties.
Have fun with an energy dashboard
Give your tenants a fun and data-driven way of understanding their energy usage. Tenants with a software-based dashboard can stay updated on real-time energy use, and better pinpoint ways to conserve energy. Hybrid workplaces will find this especially beneficial for their bottom line. By identifying patterns and areas of improvement, you and your tenants can collectively improve efficiency.
Encourage participation in energy audits
Invite tenants to participate in periodic energy audits. By assessing their own spaces, tenants can gain insights into specific areas where they can reduce energy usage. Offer incentives for those who actively engage in energy audits and implement recommended changes.
4. Put Your Building On-Demand
On-Demand HVAC is Genea’s cloud-based platform that revolutionizes the way you and your tenants request and fulfill air requests. By activating HVAC systems only when tenants request them, property teams can drastically cut down on energy consumption and equipment maintenance costs, aligning with sustainability regulations. This approach not only eliminates wasteful spending associated with heating and cooling empty spaces but also automates the fulfillment of after-hours HVAC requests, bypassing paperwork and advanced notice requirements.
Additionally, tenants benefit from transparent, easy-to-read digital invoices that detail their energy usage, fostering accountability and informed decision-making. Genea On-Demand HVAC ensures efficient, cost-effective management of HVAC services, enhancing comfort and sustainability across commercial properties. See how you can save up to 35% on building revenue with On-Demand HVAC.
Hybrid workplace, fulltime energy savings
One of the greatest benefits of going on-demand is in the hybrid workplace. With tenants switching to a hybrid work environment, property managers are finding their buildings empty. Empty buildings mean wasted energy. On-Demand HVAC makes property managers and their tenants more agile when it comes to energy use. If a tenant is out of the office, no heating or cooling will be used. If they plan on coming to the office, all they need to do is make a request using their smartphone. On-Demand is one of the easiest ways to dramatically increase your energy savings.
By performing routine maintenance, balancing your system properly, educating tenants about energy savings and leveraging innovative solutions like On-Demand HVAC, you can significantly reduce your energy expenses. These strategies not only enhance the comfort and satisfaction of your tenants but also contribute to a more sustainable and cost-efficient operation for your building.
To learn how On-Demand HVAC can help you reduce energy costs across your entire CRE portfolio, speak with a helpful Genea representative today.
