How to reduce the operational costs of buildings

In today's world, businesses face an ever-increasing challenge of reducing their carbon footprint and achieving net-zero emissions. And while environmental concerns are a significant driver in this pursuit, increasing regulations and costs add additional pressures to organisations – and the buildings they operate out of. 

Recent research indicates that the built environment is responsible for approximately 47% of all global emissions. But, by leveraging new technologies and embracing advancements in PropTech, companies can actively improve both their embodied and operational emissions, leading to cost savings and environmental benefits in the long term.

The rising cost of energy

Everyone, from individuals to businesses, has been hit by the rising price of gas and electricity. The energy crisis has seen European governments dish out around €768bn on energy support schemes according to research from Savills. But it’s been found that offices and industrial buildings have been the most shielded from the impact of the energy crisis, since energy bills represent a small share of total occupier cost. Retail stores and data centres, on the other hand, have been hit the hardest. 

In May 2023, Energy Secretary Grant Schapps announced that wholesale energy prices are finally returning to their normal level. However, households and businesses are unlikely to notice a decrease in their bills for at least six weeks. And while this offers hope for those who have been worried as a result of higher bills over the past two years, for many, a rethink of how energy is used could be the answer to consistently lower energy prices.

How buildings use energy

High energy prices have been unavoidable for most but, it goes without saying, the less energy you use, the lower your bills are. And so now the demand for energy efficiency in buildings has never been greater. 

Of non-domestic buildings, offices are one of the three highest consuming users of electricity and gas according to The Non-Domestic National Energy Efficiency Data-Framework 2022 (England and Wales). Also, following the pandemic, electricity usage has once again increased, accounting for about 35% of building energy usage in 2021, up from 30% in 2010. The same study found that space cooling saw the biggest increase in demand, with increases of over 6.5% when compared to 2020.

Back in 2016, a study by BRE found that almost one-tenth of UK property’s electricity consumption came from heating, ventilation and air conditioning (HVAC) systems. 

So, despite uncertainty around the cost of energy, building managers can be more certain about where their energy is being used and find ways to reduce this. 

Why PropTech Matters 

At a time when both building teams and occupants want solutions for the properties they own or work in, PropTech makes it easier to monitor and analyse buildings' operational energy usage. With the help of sensors, smart meters, and building management systems, they can collect data on a range of parameters, such as temperature, humidity, occupancy levels, and energy consumption. 

This data can then be analysed using sophisticated algorithms and machine learning models to identify patterns and trends. This allows teams to understand their buildings' energy performance in real-time, even in properties with low occupancy or ones working harder than they need to. For example, an office building that is being heated or cooled over the weekend when teams are working from home is wasting energy and driving up costs. 

It can also predict future energy consumption and identify potential problems before they occur, allowing building managers to take proactive steps to address issues, such as scheduling maintenance or replacing faulty equipment before they lead to costly downtime or repairs. A building that is consistently overheated or over-cooled can be a sign of a faulty HVAC system, which may be causing unnecessary energy consumption.

By using tools that monitor and analyse building data, teams can quickly identify and rectify such issues, leading to further cost savings and energy efficiency. This is especially useful for businesses and building managers right now, as the cost of running an office building in the UK is at its highest level ever. 

How we can help

As a PropTech solution, Demand Logic provides real-time monitoring and analysis of building systems, offering insights into energy usage, occupant comfort, and system performance.  

One study conducted by London Southbank University found that buildings using Demand Logic were able to achieve energy savings of up to 30% with combined savings of £6.9m annually. The study analysed data from a range of commercial buildings, including offices, retail spaces, and schools, and found that Demand Logic was effective in identifying and addressing energy inefficiencies across all building types.
Learn more about our services by emailing us or calling 020 7193 4212.