By Nicolette Maury, CEO of Avani Solutions
Building inefficiencies are often silent and invisible because they are buried deep in outdated systems, inconsistent data or reactive maintenance approaches
Even well-managed office buildings and retail stores can quietly bleed money.
The culprit? Costly inefficiencies.
Unlike a massive breakdown or other major catastrophe, building and store inefficiencies are often silent and invisible because they are buried deep in outdated systems, inconsistent data or reactive maintenance approaches.
They don’t necessarily interrupt everyday life in any major way, so it’s easy to overlook their existence. But their erosion on profits and performance is enough to warrant every single portfolio manager’s or owner’s attention immediately.
Because, the good news? They’re totally fixable.
With the right tools, like real-time data and automation, these hidden costs can be uncovered and eliminated. The result: lower operating costs, improved energy efficiency and a more resilient portfolio.
Here are five of the most common inefficiencies hiding in building and retail portfolios – and how to fix them.
1. Heating, ventilation and air conditioning overuse during off-peak hours
Many retail stores and office buildings continue to operate HVAC systems even when unoccupied, leading to massive energy wastage. These systems are often left running beyond occupancy hours due to lack of monitoring and scheduling controls. Property managers might not even be aware of the extent of this inefficiency, even while wondering why their energy bills are so high.
One solution is to use smart scheduling and occupancy sensors. Automated solutions can adjust HVAC settings based on occupancy and the time of day, ensuring energy use is reduced without compromising tenant or customer comfort. This not only lowers operational costs but also helps reduce your building’s carbon footprint. It’s a win-win for the environment and your budget.
2. Reactive maintenance and equipment downtime
No one wants to wait until something breaks down to fix it. But that’s how a lot of building maintenance works. When equipment fails, repairs can be pricey and cause lengthy downtimes that disrupt business.
By transitioning to predictive or condition-based maintenance, property managers can monitor equipment performance in real time, addressing issues before they turn into expensive disasters. Automated monitoring systems can detect early signs of wear and tear, scheduling maintenance only when necessary. This approach maximises uptime, extends the lifespan of critical assets and keeps your buildings running smoothly with minimal interruptions.
3. Manual reporting and compliance tracking
In many building and retail portfolios, reporting and compliance tracking are still handled manually using spreadsheets or disparate software systems. This process is slow, error-prone and often leaves property managers struggling to keep up with ever-changing regulatory requirements.
AI-powered tools streamline the reporting process by flagging risks and inefficiencies as they arise, ensuring compliance and facilitating quicker, data-driven, decision-making. For example, a retail portfolio operator can reduce compliance reporting time by 30% by switching to automated compliance tracking integrated into their building management platform.
With reporting and compliance off their plates, property managers can finally ditch the spreadsheets and spend more time on the stuff that actually moves the needle, like improving tenant and customer experience and boosting performance across the portfolio.
4. Relying on historical data
While historical data has its uses, it doesn’t capture real-time fluctuations or emerging problems. As a result, building operations may continue inefficiently, with issues only identified after the fact.
Real-time insights provide a more accurate picture of building performance, enabling immediate interventions and optimisations. Whether it’s fine-tuning HVAC settings, addressing maintenance needs or adjusting lighting schedules, real-time data empowers property managers to act swiftly, minimising energy waste and preventing downtime.
5. Lack of portfolio-level oversight
When each building is managed on its own or in isolation, inefficiencies are easy to miss. Without a centralised view of operations, property managers may miss opportunities to optimise resource allocation, share best practices or compare performance across assets. This siloed approach often leads to duplicated efforts and missed opportunities for cost savings.
Implementing a centralised building optimisation platform offers a holistic view of your entire portfolio. With this oversight, property managers can spot trends across multiple buildings, identify areas for improvement and make data-driven decisions at scale. This ensures that every building operates at peak potential, improving profitability and reducing operational risks.
By tackling these inefficiencies head-on, you can expect better financial performance, lower environmental impact and a stronger position in the market.
This publication is intended for use by Larry Schlesinger at Decision Makers in Transition
It may not be copied or disseminated to others without written permission.
https://greenstreetnews.com/article/five-hidden-inefficiencies-costing-your-building-portfolio-and-how-to-eliminate-them/
