Budgeting for Smart Building Options
Smart Buildings make for smart investments in cost savings and value enhancements, often with ROI in under 3 years. And, you may be surprised how affordable and easy a modern building automation solution can be. Here are 3 easy, strategies for budgeting for smart building options that can enable you to implement a building automation system in your buildings.
1. ASSESSMENTS AND ENERGY INCENTIVES
An initial assessment of your existing property can quickly identify the equipment and installation costs, as well as determine eligibility for energy efficiency incentives and financing. Just starting with a review of utility bills by an energy consultant can go a long way toward budgeting for smart building options.
2. CAM BUDGETING OPTIONS
A surplus of CAM funds gives property managers and asset managers options to attract new tenants and retain valuable tenants with building improvement activities. Consider that CAM can be used for capital expenditures. Building improvements are generally accepted if they reduce the property’s operational costs, lead to reduced CAM charges and benefit all tenants. Whether your property is under a triple net (NNN) lease or a gross lease structure, upgrading your building’s HVAC system falls into these parameters nicely, and it doesn’t have to break the bank.
3. TI BUDGETING OPTIONS
Strategic capital planning and innovative Tenant Improvement packages are attractive to tenants seeking renovated office space in prime locations, going way beyond paint and carpet upgrades.
Tenants across industries see that they can get more value and customization opportunities in both CBD and suburban Class B buildings. Occupants benefit not only from reduced energy expenses, but also from the combination of comfort, improved indoor air quality and precise lighting controls – all factors that can boost employee productivity. And, 75F offers an occupant mobile app that empowers tenants to personalize zone-specific temperatures and lighting. Combining all of these benefits increases net operating income (NOI), which can improve investor returns and create capital for investment in additional projects. According to JLL Research, tenant improvement packages range from $30 to $50 per square foot nationwide. At less than $5 per square foot, a smart BAS optimizes the use of IoT, cloud computing and machine learning.
Interested in how 75F's automated building control solutions can help you reach your smart building goals? Download the Smart Buildings Boost Portfolio Value eBook to learn more!