Thankfully, with the introduction of the Internet of Things (IoT), you can improve the air in your commercial real estate buildings with 75F building automation solutions, all while cutting your HVAC costs by 30-50% and receiving a return on your investment in as little as a year! Match the cut in operational expenses and increase in property value with improved air quality management (and a great occupant experience) and you have a smart building that works for you and your tenants, not the other way around!
Competition in commercial real estate is high and projected to remain high. New-builds and renovations are attractive to tenants seeking more open floorplans, more daylight, more amenities and better energy efficiency. In fact, when tenants want to lower their energy costs, gain insight into their own energy consumption and improve indoor air quality in their space, they usually look to new-builds and renovated spaces soon after discovering that they have little control over such things in their current space.
However, retrofitting existing buildings with energy efficiency and other green upgrades is often the better choice, and it can help property managers attract tenants and fill a vacancy quicker.
A surplus of CAM funds gives property managers and asset managers options to attract new tenants and retain valuable tenants with building improvement activities. But what truly adds value that tenants will notice? How can you set your building apart in a way that not only impresses tenants but adds value to their businesses too?
Is the commercial real estate industry ready for performance-based pricing models? Will your firm stack up? According to Deloitte's Real Estate and Construction Industry practice, smart building infrastructure will enable the new performance-based model. At present, smart building infrastructure may still be in the "value-added enhancement" category, but it will soon transition into an expectation of commercial tenants.
When people can monitor energy usage and efficiency of each appliance, machine and light in their homes via smartphone apps, they will also demand transparency and control at work.
When they're your dollars, you pay attention. In general, a gross lease stipulates that the landlord pays for HVAC investments and maintenance. An NNN lease specifies that the tenant pays for HVAC matters. However, there are several types of modified gross leases and modified net leases, including absolute gross and absolute net leases.
It is important to pay attention to the provisions in your lease before signing it. If no provision for HVAC exists in your lease, now is a good time to add one or ask about it. Getting stuck with HVAC equipment replacement or maintenance bills you don't expect can be very expensive, especially if you're a tenant who can't benefit from the full depreciation of an HVAC investment.