In commercial real estate, efficiency, sustainability and profitability are essential to successful building operations. Achieving these efficiencies requires a strategic approach that balances cost-effectiveness with operational improvements. Asset management, property management and engineering teams all play a crucial role in ensuring smooth operations and financial success.

The Core Elements of Efficient Building Operations

Efficiency in building operations can be broken down into five key areas:

Streamlining Processes and Automation – This includes reducing manual tasks through technology wherever possible.

Example: Automated electrical meter reading is a simple way to free up engineering time and obtain accurate and defendable data. Meter reading is a task that is done monthly so automating this would provide a good ROI for labor and minimize human error.

Enhancing Employee Training – Ensure staff are well-equipped and properly trained to operate efficiently.

Example: It’s imperative to have a training program in place for existing and new employees. The training must be consistent and comprehensive for all. There are several avenues for enhancing employee training that include trade association classes, technical schools, in-house training, and vendor provided training.

Establishing Clear Goals and Accountability – Define efficiency targets that are measurable, attainable, and have a deadline.

A good goal setting strategy is to use SMART (Specific, Measurable, Achievable, Relevant and Time-bound) when creating a plan for success. This ensures that the goal is not just aspirational but will give you results.

Ineffective goal: Improve energy efficiency.

Effective goal: Reduce energy consumption by 15 percent in the next six months.

Optimizing Resources and Management – Use assets wisely for maximum output.

We all have limitations and restrictions when it comes to resources. It can be money, staff, equipment or time. Some of the more important factors to consider are prioritizing high-return on investment projects, matching skills to tasks for in-house projects, balancing your team’s workload, breaking long-term projects into manageable phases and tracking progress regularly. Don’t forget to celebrate the wins along the way to keep motivation high.

Encouraging Feedback and Innovation – Leverage insights from staff, customers and vendors for continuous improvement.

Foster a safe environment so staff feel confident in bringing ideas to the table. Listen to all ideas and consider options. It is always a good idea to have a “lessons learned” meeting after each phase of a project. What went wrong, what went right and what would you change next time? Tracking these lessons will lead to long-term best practices for your team.

Starting with the Basics

Efficiency begins with proactive building management. Before implementing advanced strategies, teams should address fundamental areas such as preventive maintenance, operational reviews and resource optimization.

Preventive maintenance is essential in addressing deferred maintenance and streamlining operations before pursuing more complex enhancements. Your equipment needs to be in good operational condition before starting any energy efficiency strategies.

Next is conducting an operational review of systems. This helps identify necessary in-house tasks, outsourcing tasks and areas requiring consultants to ensure streamlined workflows. An example of a full operational review would be recommissioning a building which involves reverifying and optimizing the performance of existing building systems to address any issues that may have arisen over time that impacted the ability to operate effectively. It should allow your team to identify and determine what projects would yield best results for efficiency moving forward.

Implementing quick wins such as utility cost analysis, LED lighting retrofits, water and energy management strategies, waste management optimization and renewable energy solutions can drive immediate improvements in building operations.

The final fundamental area to address is resource optimization. This is all about efficiently allocating and utilizing resources like labor, materials and time to maximize productivity and minimize costs. Key strategies include utilizing smart scheduling such as building control and work order systems to minimize downtime and allow your team to proactively perform repairs. Use analytics and reporting to identify trends to reduce work orders and gain efficiency through utility management. Assess whether tasks should be handled internally or by contractors based on time, costs and in-house skills.

Advanced Operational Enhancements

Once you have finished with the basics and fine-tuned existing systems, you are ready to take efficiency to the next level with advanced enhancements. Ensure internal teams have conducted preliminary assessments to maximize their understanding of building systems. Teams should now review HVAC, lighting, equipment, and irrigation schedules, identify internal maintenance capabilities and larger projects that require external expertise.

Now it is time to bring in third-party consultants and engineers to help identify and design systems that can be optimized through replacement or enhancement. Consultants can provide objective analysis, assist with building certifications like LEED, and ensure compliance with city ordinances. Additionally, implementing a reliable analytics program helps manage data from enhanced building control systems, utility providers, waste management services, and occupancy and indoor air quality sensors. Without proper data analysis, decision-making can become overwhelming, but a strong analytics platform helps prioritize resources, optimize energy use, and justify investments to enhance efficiency.

Technology for Building Efficiency

Technology continues to revolutionize building efficiency by offering smarter, automated solutions that drive performance and sustainability. Key technologies to enhance efficiency include:

Building Automation Systems (BAS): These systems integrate and automate HVAC, lighting and security functions that improve energy efficiency and reduce operational costs.

Smart Sensors and IoT Devices: Sensors monitor occupancy, temperature and air quality in real time, allowing for precise environmental adjustments and resource allocation.

AI-Powered Energy Management: Machine learning algorithms analyze energy consumption patterns and optimize building operations that reduce waste and improves efficiency.

Chiller Optimization Software: These systems improve the performance of chiller plants, reducing energy consumption while maintaining cooling efficiency.

Automated Fault Detection & Diagnostics: AI-driven tools detect inefficiencies and potential failures in HVAC and mechanical systems, allowing for proactive maintenance.

Renewable Energy Integration: Technologies such as solar panels and battery storage systems enhance energy independence and sustainability.

Digital Twin Technology: A virtual model of a building that simulates real-world operations, allowing predictive maintenance and efficiency planning.

Advanced Utility Management Systems: These platforms provide detailed insights into water, gas and electricity consumption that help reduce costs and environmental impact.

By integrating these advanced technologies, commercial properties can significantly enhance efficiency, reduce carbon footprints, and create smarter, more sustainable environments.

Aligning Teams & Setting Goals

Developing a structured plan and process is vital for securing funding, creating timelines, demonstrating ROI, and obtaining rebates for your proposed projects.

Efficiency efforts must be collaborative, involving key stakeholders such as asset management, property management and engineering teams. Asset teams are responsible for securing and approving funding, while property management teams oversee tenant and operational efficiency goals. Engineering teams play a crucial role in implementing and sustaining efficiency measures to ensure long-term success.

Each project presented must be financially justified. The 80/20 principle suggests that 80% of efficiency gains can be achieved with existing resources, while the remaining 20% may require significant investment with diminishing returns. Key financial considerations include identifying funding sources, assigning responsibility for implementation, defining measurement metrics, and ensuring that a robust analytics framework is in place to track success.

Now that you have created a roadmap to increase efficiency, you need to sell the plan to asset management and building ownership.

Enhancing the Tenant Experience

Building efficiency is not only about cost savings and operational improvements—it also plays a crucial role in tenant satisfaction and retention. A well-maintained, efficiently operated building creates a comfortable and productive environment for tenants. Improved air quality, optimized temperature control, and effective lighting enhance tenant well-being and contribute to higher occupancy rates.

By investing in sustainable initiatives, building owners can also appeal to environmentally conscious tenants and businesses seeking to meet corporate sustainability goals. Additionally, efficiency improvements such as automated maintenance tracking and streamlined building management processes can lead to faster response times for tenant service requests, further enhancing their experience and satisfaction.

The Human Factor: Team Engagement

Once your projects have been approved and completed, we need to ensure long-term success. Technology enhances efficiency, but only when teams are properly trained to use it. Tools such as building automation systems, chiller optimization software, and third-party utility analysis provide valuable insights. However, their success depends on trust in the system, proper training and support, and effective interpretation and utilization of data.

Without a well-trained team that understands and trusts the technology, even the most advanced systems can fail to deliver their intended benefits. Ultimately, building efficiency comes down to people. Leadership, training, and team engagement are critical factors in long-term success. Even with the best systems in place, inefficiencies will persist if the team does not trust the technology, lacks proper training, and is not invested in the facility’s efficiency goals.

With the enhanced building control systems and analytics data at our fingertips, we need to retrain our teams on how to operate the new systems. Each team member must buy into our optimization program for it to be successful. A couple of ways to ensure that your team is involved in the process is to allow them to spend time with third-party contractors during installation and accept input on procedural protocols. They must have as much hands-on training as possible so they can develop and the confidence to run the new system.

An extremely helpful tool is a dashboard that compares previous data to current data to show engineers they are gaining operational efficiencies with the new system. Sharing utility data and savings is another great way to show success.

Efficiency efforts should focus on building trust in technology, providing comprehensive training, and fostering cultural buy-in within the organization. When staff members are confident in automated systems and equipped with the necessary skills, operational efficiency is significantly enhanced.

Fostering a Culture of Continuous Improvement

A culture of sustainability and efficiency requires full team buy-in. Consider making efficiency a competition with milestones and rewards. Recognitions and industry awards include:

BOMA 360 Performance Program – Recognizes best practices in commercial real estate

LEED Accreditation – Promotes sustainable design, construction, and operations standards.

BOMA TOBY Awards – The Outstanding Building of the Year

ENERGY STAR Benchmarking – Measures building energy performance

WELL Building Standard – Focuses on air quality and wellness

Green Globes & GRESB – Sustainability evaluation and benchmarking

Final Thoughts

Building efficiency is a strategic blend of technology, planning and team engagement. By leveraging analytics, optimizing resources, and fostering a culture of continuous improvement, commercial properties can achieve cost savings, improve sustainability, and enhance operational performance. A proactive approach benefits both building owners and tenants, ensuring long-term success.

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