Commercial Real Estate Industry Achieves Utilities Savings

11/05/2013 |

Commercial real estate industry is lowering costs.

The commercial real estate industry’s ongoing focus on energy efficiency has netted positive results, according to a report from the Building Owners and Managers Association (BOMA) International and Kingsley Associates.

Analysis reveals that properties in the United States reduced total operating expenses from $8.18 to $7.86 per square foot on average from 2011 to 2012, a difference of $0.32 or 3.9%. 

About two-thirds of these savings were achieved in the utility category, where average expenses fell $0.21—a whopping 9%—to $2.12 per square foot, underscoring an industry focus on maximizing building efficiency and smart asset management.

Nearly all building types boasted operating expense savings during 2012.  Only corporate facilities saw total operating expenses remain essentially unchanged with a slight 0.5% increase.  Downtown buildings remained, on average, more expensive to operate than their suburban counterparts, and they also reported a slightly smaller expense savings (4.1% versus 6.4% for suburban buildings).

As with total operating expenses, the decrease in utility expenses per square foot in 2012 also was broad-based.  Private sector office buildings in both downtown and suburban locations observed an identical 9.3% reduction, though costs remain higher at downtown locations.  Multi-tenant buildings were able to achieve greater savings than corporate or single-tenant facilities (9.6% versus 3%), but the trend was the same for both.  However, not all property types saw a decline in this area.  Utility costs rose 2.7% at medical office buildings and 4.2% at government-occupied facilities.

The Experience Exchange Report is based off the examination of a specialized control sample of more than 2,000 private sector buildings representing 385 million square feet of U.S. office space.

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See how professionals like you are taking advantage of the highest performing precision cooling system for their computer rooms and data centers, and why Data Aire is fast-becoming the number one choice for facility managers and building owners looking to decrease their energy consumption. 

Data Aire understands how digital technology and data gravity is rapidly impacting and transforming businesses. That’s why they developed ultra-efficient cooling technology to support the most modern (and not-so-modern) data centers.  Learn how One Wilshire in Los Angeles, one of the most advanced carrier hotels today, is surpassing California's strict energy efficiency requirements with Data Aire’s purpose-built system, which provide full-economization for 260 days – almost 72% of the year. That’s a measurable savings! Furthermore, the projected PUE on an annual basis for a full load is at or below 1.2.


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