EMERYVILLE, CA—Gridium's new electric utility rate optimization tool has cut approximately $47,000 in operating expenses at The Towers Emeryville, an 814,000-square-foot class-A office park that is part of KBS' client portfolio. KBS used the software company's data analytics tool to identify annual utility rate cost savings of $0.06 per square foot.
Products and services that reduce operating costs are especially significant as property owners grapple with concerns surrounding COVID-19, according to Brent Carroll, asset manager for The Towers Emeryville and senior vice president for KBS.
"We are always looking for ways to manage operating costs while delivering unmatched properties and services to tenants in each of the markets that we invest," says Carroll. "The COVID-19 pandemic and shutdown have highlighted the need to keep expenses in check so that we can focus on exceeding the expectations of our investors, partners and tenants. Assessing current and future electricity use to decrease operating costs will be particularly important in the aftermath of the pandemic. Products like Gridium's optimization tool help us to achieve this goal."
Building from its foundation of patented machine-learning technology, Gridium's new electric utility-rate optimizations combine interval meter data with a proprietary rate engine to independently verify both historical bills and optimal rate selections. This technology, validated for accuracy and precision in an assessment performed by the Lawrence Berkeley National Lab, enables buildings to claim utility bill credits from incorrect bills and to save money going forward by switching to the optimal electric utility rate for its own unique energy-use profile, explains Tom Arnold, CEO of Gridium Inc.
"Our interval-data powered technology finds energy and operating cost savings overlooked by legacy bill-pay providers running on spreadsheets," says Arnold. "Similar to a double-entry accounting system, Gridium's technology independently calculates a building's historical electric utility bills. These benchmarks allow for accurate comparison and verification of historical bills, and for the identification of billing errors. And, by calculating these comparison benchmarks under all eligible hypothetical rate scenarios for each building, Gridium's technology identifies optimal rate recommendations that lower future operating expenses."
Gridium's data analytics tool is part of a property management strategy needed in times of economic uncertainty, Arnold adds.
"Tenants in this KBS property should know their building management team is doing a great job during these unprecedented challenges," says Arnold. "This estimated $47,000 drop in annual energy operating expenses is just one piece of that."
Diana Rivers, associate director of asset services at Cushman & Wakefield, is handling property management services for The Towers Emeryville on behalf of KBS.
"During these challenging times, KBS and Cushman & Wakefield are deploying new COVID-19 operating protocols, sharing information quickly and preparing for the reboot," says Rivers. "Part of this is managing energy costs so that we can deliver high-value space to tenants and Gridium makes that easy. It's so much more than the dramatic views and outdoor lounges here that make these buildings productive and valuable to tenants."
The Towers Emeryville is a three-building waterfront office complex located at 1900-2200 Powell St. The property's amenities include a recently renovated conference center, tenant lounge, fitness center, outdoor employee lounge areas, a bocce ball court, bike storage, locker rooms, showers, 3:1,000 secure parking, 24/7 security, close proximity to public transportation, a car-wash service, electric vehicle charging stations, and food and retail amenities.
"Innovative and proactive property management strategies will continue to be critical for office landlords as companies return to their workplaces following COVID-19," Carroll tells GlobeSt.com. "A key element of those strategies will be technology geared toward efficiency and cost savings, which will enable investors to increase ROI while implementing processes that are good for the environment as well as their tenants."
In 2015, California set an ambitious goal to achieve a statewide cumulative doubling of energy efficiency savings, and reductions in electricity and natural gas end uses relative to 2015 estimates by January 1, 2030. Senate Bill 350 (De León, Chapter 574, Statutes of 2015) codified this goal and directed the California Energy Commission to set annual targets to accomplish it. The CEC has collaborated with state agencies, utilities and other stakeholders to identify and quantify the energy savings potential.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
