Owning commercial real estate doesn’t generate profit on its own, leasing those buildings and operating them efficiently drives real returns. And in today’s landscape, that efficiency is more important than ever. Retro-commissioning energy optimization can help commercial real estate owners improve ROI.
The Challenge Facing Commercial Real Estate
The commercial real estate sector is still feeling the ripple effects of the pandemic. The shift to remote and hybrid work models has dramatically reduced tenant demand for office space. Now, five years into recovery, property owners face a new set of headwinds: high interest rates, rising construction and equipment costs, and early signs of a cooling labor market. Occupancy rates for office buildings are unlikely to return to pre-pandemic levels soon.
So, how can building owners protect their investments and increase profitability in a sluggish market?
The Answer: Cut Operating Costs Through Smarter Building Management
Lowering operating costs is easier said than done. Most commercial buildings rely on complex mechanical and electrical systems that ensure occupant safety and comfort. These systems were designed for pre-pandemic occupancy patterns and cannot be “partially” shut off or kept non-operational when a building is partially occupied.
Operators and facility managers are focused on keeping their buildings running safely and comfortably. Many operators spend most of their time three stories below grade in windowless and greasy mechanical rooms. Their time is typically monopolized by resolving complaints and fixing system failures. They know their systems inside and out, from the massive air handlers and chillers hidden deep in basement mechanical rooms to the control panels that regulate building temperatures. However, their training is focused on operation, not optimization. They’re not trained to maximize energy savings from these very systems to offset financial losses to the business model of ownership—that’s simply not their role.
So, how can a building owner maximize profit from these assets? The answer lies in tapping into those same systems—not by replacing them, but by operating them more efficiently with the help of trained building energy engineers.
Unlock Savings with Retro-Commissioning and Energy Management Programs
By partnering with trained building energy engineers, owners and operators can align mechanical and electrical systems with actual building occupancy—without sacrificing tenant comfort or safety. At kW, we do this through Retro-Commissioning.
Retro-commissioning (RCx) is the process of optimizing the performance of a building’s existing systems. The most successful results come when energy engineers collaborate closely with facility operators and managers to optimize building systems, often pushing them to perform under conditions they weren’t originally designed for. These improvements are usually achieved by fine-tuning control sequences and adjusting setpoints, not through major mechanical redesign. Retro-commissioning rarely requires significant re-engineering or investment to deliver meaningful energy savings.
The Process: Iterative, Collaborative, and Data Driven
The retro-commissioning process is iterative. The system and sequences that will be implemented are developed collaboratively by the energy engineer and the building’s operational team, and then mathematically modeled to determine the starting point of the change based on the actual system design conditions. Once this first set of changes are made, they will then need to be refined based on how the system responds.
The goal is to achieve operational efficiency without compromising safety and comfort. We accomplish this by making changes to the dynamic and complex systems behind the scenes, without sacrificing performance for our ultimate jury, the hundreds of occupants of the building.
Despite the complexity, most retro-commissioning efforts are completed in just 2-4 weeks from initial assessment to implementation and deliver 5-7% reductions in energy use and utility costs, with measurable results visible right on the meter.
This approach aligns seamlessly with broader goals such as:
- Energy optimization
- Controls optimization
- Energy efficiency
- Decarbonization
- Facility planning
- Facility condition assessments
Worried About Budget? Utility Incentives Can Help
One of the most common questions we get is: “How much does Retro-Commissiong cost? And how do I pay for the services of an energy engineer if it’s not in the annual budget?”
The answer will surprise most business owners, especially those whose properties are served by the major utilities. Across the US most major utility companies offer “Energy Efficiency” or “Demand Side Management (DSM)” programs. These programs are a resource for utility customers and sometime are available through account representatives even when they are not widely advertised or promoted by the utility.
These Utility Programs Often:
- Provide financial incentives to offset the costs that might be associated with retaining an energy engineer by your organization.
- Offer access to pre-qualified energy engineers (like those at kW Engineering)
Examples Of Utilities That Offer Incentive Programs:
Wait, Sunny. You say that a utility will provide incentives and/or a trained energy engineer to help me, a customer, use less of the very product they are selling me? This makes no sense!
Yes. Utilities are heavily invested in helping customers use energy more efficiently. Why? Because a kWh saved at your building is a kWh that can be delivered to your neighbor immediately without needing new infrastructure. Surprise alert; not only will a utility pay and/or provide a technical resource for you to engage in retro-commissioning or energy management at your building, but they will likely give you an incentive for the first-year equivalent of the energy savings! Therefore, it is possible spend “zero” dollars out of pocket to get qualified energy engineering services that will help you reduce your building’s utility expenses by 5-7%. The result? Lower operating costs and a stronger bottom line for building owners. I dare say, in today’s uncertain and volatile market, it’s hard to find a better return on investment than energy optimization.
How we Can Help
kW Engineering is a recognized provider of energy management, retro-commissioning, monitoring-based commissioning and energy auditing services. We are qualified to participate in utility incentive programs across North America and also work directly with building owners and operators.
Whether you’re looking to:
- Reduce operational expenses
- Improve occupant comfort
- Future-proof your building
- Meet local, state, and federal building emission regulations
- Support your decarbonization or ESG goals
We bring decades of experience and a collaborative, data-driven approach to optimizing your building systems.
