Taking advantage of advancing data use in what are called Building Management Systems is important in achieving energy efficiency – and the commercial gains, as well as environmental ones which that implies. The author of this brief article explains what is at stake in the UK as a policy deadline draws closer.

With the UK government’s 2030 deadline looming for properties to meet an Energy Performance Certificate (EPC) “B” rating, Oliver Walker-Savings (pictured), who is senior property and asset management surveyor at commercial property consultancy Hartnell Taylor Cook, examines the cost argument for fast-tracking decarbonising buildings. He also explains why investors must act now to capitalise.


Oliver Walker-Savings

The editors are pleased to share these views; the usual editorial disclaimers apply to opinions of guest writers. To jump into the conversation, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

The government is consulting on altering EPCs to be based on real-time data as opposed to the current theoretical model, and it is still considering a minimum standard of an EPC B by April 2030.  These changes could have a major effect on the value of commercial property investments.  

Due to the above, occupiers and investors are increasingly looking for buildings with an EPC grade B or higher, and a divide in value is starting to appear between those buildings and the rest.  

If we are to see the advised 59 per cent reduction of office sector energy consumption by 2050, landlords must start focusing on smart scheduling, real-time data integration, and strategic equipment modifications. A proactive approach will achieve greater energy efficiency, lower operational costs, and ultimately, it will improve returns. Service charge rates are much more attractive to tenants once costs of wasted energy are factored out, ensuring the marketability and competitiveness of a building. But how might this be done?

Invest in BMS: the first step towards energy efficiency
Regularly monitoring building activity through a Building Management System (BMS) can often be overlooked, but without it, it is almost impossible to make sure that energy usage is optimised and costs to commercial landlords are mitigated. Often significant savings can be made through minor tweaks to a building’s mechanical and electrical systems. Reviewing half-hourly BMS data for a property is a good first step in identifying where these cost-saving measures can be implemented.

Our recent investigation into a multi-let office building in the South East which was maintained by a well-known provider of M&E (mechanical and electrical) services serves as a good example of this. A review of half-hourly data revealed energy usage disproportionate to the building's occupancy, so we embarked on an in-depth investigation into the building’s M&E systems, hoping to identify the cause of high utility consumption with the goal of optimising BMS performance and increasing energy efficiency.

An analysis of the data revealed that the one part of the building’s air conditioning system had its time schedule enabled for 19 hours per day; the Air Handling Unit (AHU) fan was set at a rate intended for a building occupancy of 765 people despite it being closer to 500; and the boiler system was running without a “dead band” margin, resulting in it operating at a highly energy-intensive temperature setting. These factors contributed to soaring financial and environmental costs to the property and required immediate rectification.

With the issues apparent, we were able to implement curated solutions to address them. By reducing the AHU motor speed by just 20 per cent, we enabled as much as 50 per cent energy savings, increased comfort, and cleaner air quality, exemplifying how investment in tech and data can ultimately result in long-term savings. Furthermore, in adjusting the building’s boiler systems by implementing a dead band margin of several degrees, we managed to reduce its unnecessary operation and bring costs down further. 

Whilst these points may seem technical, the key takeaway for commercial landlords is that the return on investment in making these changes could be significant, not just in lowering service charges, but in long-term investment values. 

Towards a clean, green future 
Ultimately, by tackling each of these issues in turn, we were able to deliver significant cost savings for both landlords and tenants – and it all began with an analysis of existing BMS data. Improved efficiency means reduced service charge rates, which better aligns properties with the desires of both landlord and tenant and, by decarbonising, buildings are brought in line with tenants’ increasingly ESG-focused priorities, making it a more economically attractive investment in the long term. 

So, the case is clear. For buildings to decarbonise as quickly and efficiently as possible, commercial landlords must take advantage of the advancing data use in BMS systems. Though this may mean having to invest in hardware and software upgrades in the short term, particularly in energy-intensive features such as AHUs and boiler systems, the long-term savings are worth the wait.