Real Estate News Business
 
SubscribeRss
 
SEARCH
SITE WEB
                          
  FEATURES

SAVE | EMAIL | PRINT | MOST POPULAR | RSS | REPRINTS

Drive Your Buildings to Peak Operating Efficiency and Save Money
Published: May 07, 2008

Tom Scali

By Thomas Scali, U.S. Energy Group

Let’s rethink the way we measure building efficiency. As an industry, we have already developed effective programs to certify buildings as green and reward major development and infrastructure initiatives. These are important and they should be continued. However, if we are truly going to address the issue of building efficiently and making meaningful changes to protect the ecology of our planet, we also have to analyze the day-to-day results achieved from tweaking building functions as needed and reward those individuals who are actually driving the buildings to peak operating efficiency. We need to recognize the important role of the "building efficiency driver."

First, it’s important to ask yourself: "Who’s behind the wheel?" There has to be an individual--or a team--actively and proactively making decisions about the HVAC system on a daily basis. It might be a building manager or a facilities director or perhaps a really "super" super; regardless, it is important for that person to see himself as a proactive driver, steering the building each day. The results should be measurable and reflect key performance metrics that have been established as specific efficiency goals.

This is not a passive activity during which you can fall asleep at the wheel--the efficiency driver you select must be vigilant and think proactively. The old style of running a building was reactive--typically, owners and managers only did what they had to do because tenants pressured them or there was an emergency. This model no longer works. Fuel prices are too high, and sustainability initiatives are too important. You can save substantial amounts of money and the planet just by running your building proactively.

Next, you must ask yourself what tools your drivers have. Are they working with an automatic or a stick shift? In other words, how do they learn about problems with the boiler or HVAC system and how quickly can they address them? With a large portfolio of buildings, you need a building management system--online access to the entire portfolio. The system you select should have enhanced alerts so that it drives the drivers. Alert reports tell a busy property manager just what problems need to be immediately addressed and can be set up to send him an email or text message to say that the boiler run-time is too long, water is leaking or there is a Department of Housing, Preservation and Development (HPD) violation that needs prompt attention, and he can immediately address the alerts. The driver can select thresholds that enable him to customize the alerts based on his preferences and the individual needs of the building. 

Along with monitoring the functioning of the HVAC system, a proactive driver also has to monitor and verify the oil deliveries to the building. This is one of those areas where it is easy to assume it is being done accurately, but in reality, it often isn’t. The only way you can be sure you are getting all of the oil you paid for is to accurately and independently double-check the delivery ticket amount.  

In order to demonstrate how effective a great building efficiency driver can be, let’s take a look at some examples of proactive monitoring:

Address a Water Leak--While Dressed For A Party


Ben Schwartz, Metropolitan Property Services: Ben is an example of a proactive and effective building efficiency driver. Recently, he was at a fundraiser and saw an alert on his Blackberry: a building was losing water. While at the cocktail party, Schwartz was able to get the leak fixed immediately without even missing an hors d’oeuvre. "Right there in the middle of the event, I was able to resolve the issue," he explains. "If I hadn’t received an alert, it would not have been discovered until the next day."

Checkmate--You Win, You Save Money


Richard Carcano, Rosenberg-Diamond Development: Richard proactively uses alerts and active monitoring to have issues in his buildings addressed immediately. "When we have high stacks, we can call and get it taken care of right away," he says. "If there’s a water problem, we call the plumber right away. Alerts and active monitoring allow me to move my people around. It’s a giant chessboard, and I move the right people to the right places to do the work and checkmate the problems. We save money by addressing everything right away and by not waiting."

Gotcha--If I bought it, I want it


Ryan Shadrick, SFA Properties: Ryan recently conducted a study of his oil purchases in 2006 and 2007, and realized that despite the fact that 2007 had more degree days, he purchased significantly less oil. He had started accurately and independently verifying his heating oil deliveries in 2007 and found that he was no longer a victim of oil theft.   

Avoid Getting Burned


Ed Gublet, Ceebraid-Signal Management Group, LTD: Ed is a proactive driver who spot-checks his buildings with an online management system each morning to make sure that apartments are not being over- or under-heated and to tweak them to run efficiently. It was during one of these checks that he realized the burner in one of his buildings was malfunctioning. Gublet was in the drivers seat and got the repair personnel on site immediately to address it.

The examples cited above demonstrate how important an efficiency driver is to running a building at peak operating efficiency. It is about results. The proactive driver can set specific goals and monitor the heating system daily to achieve provable savings. While we are so busy certifying buildings as green, it is crucial that we also evaluate conservation measures that can be achieved through daily active attention and acknowledge the efficiency drivers who are behind the wheel.

Thomas Scali is the director of sales and business development at U.S. Energy Group. Scali can be reached at Tom@use-group.com. For more information, visit U.S. Energy Group at www.use-group.com.



SAVE | EMAIL | PRINT | MOST POPULAR | RSS | REPRINTS

Post a Comment
* Required field
* User Name:
* Comment:
 
  RECENT FEATURE HEADLINES

90-Degree Turn: Stimulus Package Redirects Housing Efforts to Affordable rentals
The American Recovery and Reinvestment Act of 2009 is now law and on task to kick-start the moribund U.S. economy, including a re-dedication by the federal government to developing and rehabilitating affordable housing.


Editor’s Note: A Change Could Do You Good
Small businesses are sometimes envied for their ability to be agile and to change the game plan to respond to market conditions. Whether you manage one apartment community or 20, an agile strategy can make all the difference in how you weather adversity and emerge stronger than before from the downturn. Now’s the time to take a careful look at what you’re doing, why you’re doing it and the processes your team has in place to achieve your common objectives.


Improving Building Energy Profiles: What It Will Take
Moving beyond automobiles, policymakers are now looking to the built environment for a solution to ever-increasing greenhouse gas emissions. Their reasoning is that “buildings are responsible for 70 percent of electricity use” and, therefore, by extension, 40 percent of carbon emissions.


Case Study: LEED Gold Mixed-Use Community Planned for Houston Suburb
WaterLights District is a  $700 million, 155-acre master planned community in Pearland, Texas designed for LEED (Leadership in Energy and Environmental Design) Gold certification. Groundbreaking is slated for April 2009, with first deliveries scheduled for April 2010. MHN Associate Editor Erika Schnitzer talks to David Goswick, executive director, Historic Real Estate Inc., a private real estate investment and development company, and Steve Biegel, CEO, Matrix Spencer Architects, the project’s master planner about the site’s sustainable features, green building trends in Texas, and how the economy is affecting development.


Case Study: Investing in Carbon-Neutral Luxury in the Philippines
The Cacao Pearl, located in Palawan, Philippines, is designed to become the world's first non-profit and luxury eco-resort community to commit 100 percent of operating profits to environmental protection and social improvements. It is a low-density boutique resort being built in accordance with sustainable development principles, with 60 condominiums achieving zero carbon cost. Units range from $210,000 to $250,000. Joel Cere, CEO, Barefoot Investments, talks to MHN Associate Editor Erika Schnitzer about the company’s initiatives and objectives, as well as the development’s green features.


EDITOR'S NOTE: CPSC Clarifies Pool Drain Enforcement Plans
Being based in New York City, where we're currently seeing a wet snowfall, my thoughts at this time of year typically do not revolve around swimming pools. Until today, when pool drains became front-page news that property managers need to take note of.


How Property Managers Can Cut Utility Costs
Perhaps the most significant operating cost for multifamily properties is the cost of utilities. Here are strategies that can help reduce those expenses.


Hudson Tea: Three Distinct Model Units Speak to Different Demographics at Toll Brothers' Hoboken Condo
Mary Cook and Associates designed three so-called character-inspired model homes for Toll Brothers


EDITOR'S NOTE: Real Estate Bubbles
When reporting on multifamily finance in the 2000s, I came across a common refrain from desperate mortgage bankers again and again: "There is a surplus of money chasing a limited amount of product." This intensely competitive environment--for lenders, that is--went on for years, seemingly never-ending. But the capital "surplus" environment did come to an end.


Market Report: India Residential Sector Gears Up for an Overhaul
The residential sector in India has undergone a far-reaching metamorphosis in the last decade. After years of unplanned and haphazard development, the sector is now marked by enhanced product offering, heightened investment including foreign capital, and augmentation of the national footprint of some prominent Indian developers. Modern apartments and villa and township projects have come up across the country and new city master plans have been drawn to include a number of suburban and peripheral locations within the city’s folds.


Reduce Cooling Costs in Multifamily Homes with Radiant Barrier Sheathing
Energy efficiency is a top priority for many multifamily builders and developers when planning projects. Features such as energy-efficient windows and appliances can be key selling points with renters and condo owners. Going another step, the choice of roofing materials can further boost energy savings. Radiant barrier sheathing (RBS), for example, provides a simple, cost-effective way to reduce energy use while helping ensure strong and long-lasting roof framing.


Coping with a Fire's Aftermath
Anaheim Hills, Calif.—While fires caused by dry Christmas trees are a concern during the holiday season, outdoor fire issues are a year-round worry. Southern California wildfires recently destroyed a number of apartments and rendered multiple buildings uninhabitable at a 292-unit garden-style apartment community, the Cascades, in Anaheim Hills, Calif.


EDITOR'S NOTE: The Season of Sharing
With so many companies now cutting back on holiday celebrations, this could be the season when property managers can really make a difference in their residents' lives as well as in their communities. Simple opportunities for get-togethers may now be appreciated more than in previous years when budgets were more lavish. Perhaps the time is right for a return to basics, like a homemade cookie exchange or carol singing. This is the time of year that people especially value warm greetings and times together. They're a welcome antidote to the worrisome headlines of daily news reports.


Property Management: Can You Afford Not to Screen Residents?
Before a resident will be accepted at an apartment community, he or she needs to be background checked. But for what information? Indeed, resident screening can be a tricky process, as it is an area that is laden with potential pitfalls. What aspects of an applicant’s background are relevant? What are the ways to screen residents? What should you do or not do if you do not want to be sued? These are all questions to address.


Perspective: Nine Ways to Capture Leasing Prospects During the 'Sales Walk'
As prospective tenants become more savvy about “shopping the market,” and the competition for luxury market renters becomes increasingly fierce, property owners need to consider the prospective resident’s entire housing selection experience in order to successfully capture tenants.


EDITOR'S NOTE: Turning Point
The apartment sector had been holding out relatively well compared to other industries, but it too will succumb to the massive loss of jobs that is expected to accelerate as we go into 2009.


Perspective: Free Up Valuable Investment Capital by Reducing Insurance Collateral
Market uncertainty has led to tightening of global credit markets and increased the cost of raising capital. To make the situation even more painful, real estate developers and apartment owners are likely to face increased insurance premiums. But, all is not doom and gloom. By re-evaluating their deductible insurance programs, companies may be able to reduce collateral obligations and free up capital for other uses.


Dealing with the Crisis: Roundtable Participants
Participants at Transwestern Institutional Multifamily Group's multifamily executives roundtable. The roundtable took place recently in October during the company's annual market forecast and awards conference.


Q&A: Going Green in Senior Living
Steve Leone, AIA, LEED AP, is a principal and director of sustainable design at Cubellis. He recently spoke at the American Association of Homes and Services for the Aging’s (AAHSA) 2008 annual meeting & exposition, held in Philadelphia, at a session entitled Green Communities: A Growing Trend in Senior Living. MHN Associate Editor Erika Schnitzer talks to Leone about the trend of greening senior living and how it affects the development and operations of these communities, as well as how aging providers in Japan, Germany and Switzerland are incorporating green design and sustainable approaches.


EDITOR’S NOTE: Happy Accidents
Do you remember “The Accidental Tourist,” an Academy Award-nominated film based on the novel of the same name by Anne Tyler? It prompts me to propose a sequel, “The Accidental Property Manager.”


Monroe
IREM’s New President Shares 2009 Goals, Reinforces Green Commitment
Pamela W. Monroe, CPM brings over 25 years of professional property management experience to her new role as president of the Institute of Real Estate Management (IREM) . Currently, she is also senior vice president of Community Realty Management Inc., Pleasantville, N.J., which she joined in 2002. Monroe tells MHN Managing Editor Teresa O'Dea Hein that since beginning her career in Mobile, Ala., she has overseen all types of multifamily housing in areas as diverse as the Southeast, Texas, Oklahoma, New Jersey, Pennsylvania, Maryland, Virginia and the Virgin Islands. This detail-oriented management executive sees the wide-ranging value of "green" initiatives and also cites a lifetime mentor's advice "that real estate management is all about dollars and cents. A nickel saved here and a dollar there can have a major impact on the bottom line."


EDITOR’S NOTE: The Apartment Sales Market Slows Down
The apartment investment sales market since the financial market crisis occurred in mid-September has “freezed up” as apartment buyers and sellers face deep uncertainty over the future of the nation’s—indeed, the global—economic condition.


PERSPECTIVE: Why Budget for Bad Debt?
As budget season approaches, apartment owners and managers are once again budgeting for bad debt - those monies unrecovered by collections after a resident has damaged a unit or skipped out on rent. According to just-released data from the National Apartment Association (“2008 Survey of Operating Income & Expenses in Rental Apartment Properties’), owners and property managers of market rate properties lost on average $70 per unit last year to bad debt.


INSIDE THE DEAL: Redevelopment of Expiring LIHTC Property Preserves 500+ Affordable Apartments
Brooklyn, N.Y.—The Domain Companies and Arker Companies have announced completion of the $52 million redevelopment of Spring Creek Gardens. The property was coming to the end of its 15-year Low Income Housing Tax Credit (LIHTC) compliance period.


Q&A with David Gross: The Biggest Challenge to Green Development Is Fear of the Unknown
David E. Gross, AIA, is a founding partner of GF55 Partners, a New York-based architecture firm that is currently working on projects in Florida, New Jersey and New York. He talks to MHN Associate Editor Erika Schnitzer about the most difficult roadblocks in green design, what it takes to be green, and how the state of the economy has affected the markets in which he works.


 


Requires
Flash Player 9

Version Test
Download Flash


Follow MHN Online
 
 
 

Produced by: Nielsen Business Media, a part of the Nielsen Company
Nielsen Hospitality Design | Kitchen & Bath Business | Display & Design Ideas
Multi-Housing News | Commercial Property News | Impressions
 
Multi-Housing News is the only real estate magazine that covers the multi-housing industry thoroughly, from multifamily trends to Residential Real Estate News. Multi-Housing News sets itself apart from competitive publications by its sheer devotion to the Multi-Housing industry and Residential Real Estate building industry. Through its exclusive Multi-Housing industry awards presentations and hugely popular Multi-Housing World conferences and Residential Real Estate and Building Expos, Multi-Housing News is a real estate magazine for professionals and proves that it has the industries future on its mind at all times. Whether it is through US housing market editorials, Multi-housing industry awards, green home trade shows or just reporting the latest news on the state of the Residential Real Estate, Multi-Housing News is appreciated globally as the leader in Multifamily and Multi-Housing industry information.
Multi Housing News Home | Real Estate News | Multifamily Real Estate Product Gallery | Directories |
Residential Real Estate Features | Multi Family Industry Events | About Multi-Housing News | Multifamily Trends Sitemap |
Advertising Opportunities | Media Kit | Contact Multi-housing News | Residential Real Estate Newsletter | Multi-housing Industry Tips


© 2008 Nielsen Business Media All rights reserved. TERMS OF USE | PRIVACY POLICY