As a property manager, there are a lot of factors you must consider when it comes to managing your space on a day-to-day basis. Regular maintenance, property taxes, utilities, and more all drastically impact both profitability and tenant satisfaction.
The Operating Cost Breakdown
Your ultimate goal as a property manager is to increase profitability. This effort is two-fold: grow revenue and keep operating costs low, without hindering the quality of your offering. While operating costs refer to a variety of different expenses associated with the day-to-day management of your space, one factor drives up operating costs significantly — energy use.
One-third of total non-fixed operating costs actually come from energy consumption. Energy use comes in the form of heating and cooling, lighting, appliances, and technology, with heating and cooling accounting for approximately 40% of energy usage in commercial spaces. Additionally, lighting accounts for 17% of electricity use in buildings. While lighting, heating, and cooling directly and significantly impact operating costs, there is not an opportunity to completely eliminate these costs in a commercial space. Why? Because both the lighting and the temperature of your space directly impact the tenants’ daily environment. Should one of these functions not be operating at their full potential, tenant dissatisfaction is likely to occur.
While turning off the lights or giving the HVAC system a break isn’t always plausible, there is a way to reduce the amount of usage: utilizing energy-saving tactics and products. Cutting back on energy usage can help you to achieve lower energy bills, increased energy efficiency, and improved tenant satisfaction.
Decrease Energy Usage to Increase Profitability
Commercial buildings around the world are recognizing the importance of energy efficiency when it comes to tenant satisfaction and lower operating costs, which in turn directly impacts profitability. To take steps in the right direction, it’s important to understand and identify inefficiencies in your commercial space and implement actionable strategies to address them.
HVAC Systems
Because HVAC systems utilize so much energy, searching for air leaks, drafts, and hot spots in your space is a great way to start, as these have a direct impact on how strenuously HVAC systems must operate to maintain a comfortable interior temperature. Do you ever notice poor insulation during the cooler months? Or in the summer, do you feel a space heating up as the hot sun beats down through the window? This can cause HVAC systems to work harder in order to keep your space comfortable, resulting in higher energy usage and bills.
One way to control the temperature of your space is to limit access to the thermostat so that it’s set at the most efficient temperature and tenants are unable to change it whenever they please. Another option is to replace heating and cooling equipment over time because inevitably, HVAC systems experience wear and tear, becoming less effective. Although this can’t be done frequently, an aged HVAC system may need to work twice as hard as a newer system to maintain a comfortable temperature. Something as simple as the warmth generated by your HVAC system escaping through your building’s expansive windows in the winter can drive up energy bills. While many think this problem may be a normal and seasonal fluctuation in operating costs, addressing this issue can save money in the long run.
Lighting
Bright workspaces are valued by employees, as they can foster productivity and an overall happier environment. However, keeping a commercial space lit can be expensive. A simple way to reduce the need for electrical lighting in your commercial space is to utilize natural light. Not only will natural light save you money, but it will also please tenants by improving the wellbeing and productivity of their employees. In implementing energy-saving technology and strategies, both the tenants and property managers are satisfied with great lighting and lower energy use.
While natural light can help us reduce the need for electrical lighting, it can also negatively impact our HVAC systems. Large windows that welcome natural lighting also allow for poor insulation in the winter or hot spots in the summer. In turn, HVAC systems work overtime to maintain the difference between the indoor and outdoor temperature. The battle between natural light or a functioning HVAC system is one that many commercial spaces fight on a regular basis, as the two are intertwined. The simple solution: window film.
How Window Film Can Help Increase Profitability and Boost Tenant Satisfaction
A naturally lit workspace has a positive impact on tenants by boosting morale and improving productivity. In fact, according to the Harvard Business Review, a survey conducted by Future Workplace found that access to natural light and views of the outdoors are the number one desired attribute of a work environment. In addition to enhanced tenant satisfaction, utilizing natural lighting can assist property managers in cutting back on electricity use from lighting. On the other hand, large windows that allow for natural lighting also contribute to poor insulation and hot spots, which cause HVAC systems to work hard to maintain the indoor temperature of the space in both the winter and summer. Property managers and tenants should not have to choose between having natural lighting or comfortable temperatures. With window film, you can achieve the best of both worlds.
Window film allows the sun’s light to freely enter your space, without the negative effects that come along with it. Rejecting up to 97% of the sun’s infrared heat and up to 99% of UV rays, 3M Sun Control Window Films eliminate the constant battle between natural light and comfortable temperatures. In particular, 3M Thinsulate insulating window film works to maintain comfortable temperatures all year long, trapping heat in the winter and blocking heat in the summer, without compromising the view from your windows.
Installing window film can result in energy savings in every season, without having to eliminate natural lighting in your space and without affecting the views of your surroundings. Furthermore, it can add years to the life of HVAC systems, saving even more money in the long run. Don’t make the choice between natural light and comfortable temperatures. With window film, you can achieve both and most importantly, you’ll enjoy increased energy efficiency and lower energy bills. As a result, you’ll improve tenant satisfaction and slash operating costs, which boosts profitability.
