Future Proofing - Stark Tech

Future Proofing Strategies Transform the Old into New 

Stark Tech Provides Future Proofing Opportunities
In the past, owners of older Class B and Class C buildings may have resisted investments or operational changes to their properties due to limited working capital and resources. However, according to the BOMA report, the market for Class B/C Buildings is changing.

There’s an adage, “One person’s trash is another person’s treasure.” Class B and C buildings may be less desirable to prospective tenants and investment plans when looking at building classifications. However, with a well-thought-out long-term strategic plan and technology roadmap, Class B/C buildings can future-proof into Class A opportunities.

Buildings classified as B and C are older. Some can become society’s most incredible gems with a proper upgrade plan. Many times, these very properties command the prime locations. Still, often the market has a mindset of an all-or-nothing approach to retrofit, which can stall or perpetually delay completely viable projects. There’s no reason to do minor fixes when fixing it once; fixing it right and keeping it relevant are viable options.

I like to view B/C buildings and portfolios as “Building Conversion” opportunities to do a deeper-scoped, transformative project that can potentially future-proof the asset. Also, if done strategically and methodically, it can open options for a higher rent, higher value, and an on-point mission for the property.

Leveraging Energy Savings to Fund Optimization

According to a report titled Unlocking Hidden Value in Class B/C Office Buildings by Rocky Mountain Institute, Urban Land Institute, and BOMA International, implementing a combination of low-to-no cost energy efficiency strategies can result in 15% to 35% energy savings for an average annual savings of $20,000 to $46,000 on a 75,000 sq. ft. building. Using the average $6/sq. ft. equates to $450,000 of added value. Proof that real money invested can be the building blocks for other strategic financial options for the property.

Source: Unlocking Hidden Value Class in B/C Buildings by Joey Cathcart, Rocky Mountain Institute; Monika Henn, Urban Land Institute; Greg Hopkins, Rocky Mountain Institute;
Marta Schantz, Urban Land Institute

In the past, owners of older Class B and Class C buildings may have resisted investments or operational changes to their properties due to limited working capital and resources. However, according to the BOMA report, the market for Class B/C Buildings is changing. Tenant preferences, demand for new intelligent building solutions, and mandated policies to reduce building emissions force building owners to look at options to stay competitive and compliant. The market demands more, and energy efficiency is only part of the solution.

To ensure the monies invested are building blocks for the future, one must look at opportunities that achieve total facilities optimization. When one collaborates and strategically partners with their building solutions integrator and service provider, a strategic plan that future-proofs the building can be executed, ultimately increasing the property’s value. When one takes this comprehensive approach, there are many factors to consider – energy usage, yes – but also tenant expectation, maintenance, differential maintenance, building mission, and overall technology roadmap.

Strategic Approach

Let’s start with the data.

By collecting and auditing building and utility data, we’re able to benchmark the site against similar buildings. This gives us a baseline understanding of how energy usage in the building has changed over time and how it compares against similar profiles. The data identifies inefficiencies that are occurring, and, in turn, one is better equipped to make recommendations on how to achieve the long-term goals of the building.

This can be a critical step when a building needs to upgrade equipment and integrate disparate systems to comply with building code and regulatory changes.  The data helps identify upgrade needs and solutions that fit budgetary and compliance criteria.

In addition, the data may also identify the source of occupant complaints. One may recommend changes such as optimized HVAC controls. Programming and ongoing preventative maintenance strategies can also reduce or eliminate unplanned downtime. Another option may be retro commissioning the HVAC and Building Automation Systems, for more efficient equipment usage and output.

Follow the Roadmap to Financial Returns

In another scenario, capital improvements may be suggested. This will address deferred maintenance on assets by replacing outdated and inefficient equipment. This equipment includes HVAC, control systems, generators and more. The upfront investment with the right strategy can result in a fast return with higher property value and income streams.  

The data lays the groundwork for the long-term technology roadmap. It underscored the need to install the right upgrades that convert B/C buildings to high demand property.  

In one scenario, Stark Tech analyzed a portfolio of more than 150 properties for a major commercial real estate company. Using proprietary software we analyzed energy, building inventory, and market data. This allowed us to identify properties with the greatest potential for quick, efficient, and high ROI. Stark Tech engineers retrofitted equipment and upgraded building automation to enhance asset performance and ensure compliance with building codes.

Stark Tech can offer strategies to help building owners identify opportunities for total facilities optimization. This includes adding new and upgraded technology, and long-term roadmaps that optimize overall building performance. For more information, visit StarkTech.com  

ABOUT THE AUTHOR

Jill Szpylman
Jill Szpylman

Jill Szpylman is the Marketing Communications Director for Stark Tech. With a demonstrated history in the clean energy space, Ms. Szpylman has a passion for technologies that reduce greenhouse gas emissions and build a more sustainable future. Jill is responsible for the execution of the marketing strategy, content development, and sales support collateral for all of Stark Tech and the affiliated business units.

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