Then survey the tenants and any third-party contractors to find out what
changes or upgrades they think would be of value. Finally, physically inspect
all systems.
Benchmark the Building’s Performance
The only way to determine the effectiveness of the building’s system upgrades
is to have a baseline. After the upgrades, you will want to conduct a “before”
and “after” comparison to judge upgrade effectiveness. Benchmark the current
energy usage, the energy cost, and the number and type of work orders.
Conduct surveys of tenants or occupants regarding their current satisfaction
of lighting, security, technology amenities, and so on.
Decide Whether to Seek Leadership in Energy
and Environmental Design Certification
Recent studies have shown that leadership in energy and environmental design
(LEED) certification has a positive financial effect on the value of a building.
Thus, if a building owner is upgrading systems and wants added financial
value, incorporating LEED certification as part of the strategy makes sense.
A critical part of LEED certification for existing buildings (which focuses
on operations and maintenance) is system upgrades. Much of what is often
proposed as a strategy for existing buildings can satisfy some of the LEED
criteria. LEED certification for existing buildings also requires addressing
issues other than system upgrades such as recycling, exterior maintenance
programs, and cleaning or maintenance issues.
Prioritize and Fund the Effort
One should prioritize and sequence the system upgrades based on their potential
financial return and technical analysis. If you have a portfolio of real estate, pri-
oritize on a building-by-building basis and pick out a couple of buildings to use
as pilot projects. Set a budget for the upgrades and commit funding for the proj-
ect. If funding is an issue, consider the use of an energy services company
(ESCO). ESCOs essentially enter into an energy performance contract.
Initially ESCOs may be paid a fee for energy audits and a feasibility study.
The ESCO may then determine the cost of the energy system upgrades and the
potential energy savings and put together a business case for funding the costs
of the upgrades in return for a portion of the energy savings. Some ESCOs
may even fund the non-energy technology upgrades as well, depending on
the business case. Also examine tax incentives and rebates from governments
and utilities to offset the capital cost of the upgrades.
156 Smart Building Systems for Architects, Owners, and Builders