Within the real estate industry, there is a global discussion around how to make buildings and construction more sustainable, however, the conversation is often primarily focused on large buildings and glamorous new development projects. And whilst single-handedly these assets are undoubtedly some of the worst contributors to the industry’s high levels of carbon emissions, smaller buildings tend to be overlooked despite them collectively being of equal importance.
All buildings, not just the newest and largest, need to have a roadmap to ensure that their actual operational efficiency is realised ahead of the net zero targets and, of course, beyond.
Small changes, big impact
Some might say that smaller buildings are in the greatest need of agile sustainable building software and PropTech solutions. Unlike larger buildings, the economies of scale often don’t work in their favour, resulting in ‘caretaker maintenance’ contracts and piecemeal project work. These buildings are, therefore, more challenging than larger buildings which in comparison often have healthy capital expenditure and service charge budgets to support their ongoing operation. Moreover, the management structure of real estate often makes it difficult to spread costs over multiple properties so building-by-building projects and contracts are favoured.
Regardless, small buildings suffer from the same issues as larger buildings, such as out of hours operation, dual heating and cooling, poor temperature control and set point achievement. So, whilst the business case for optimising a single small building may be a tough sell, it is a marginal gain in a much bigger picture. As an industry, we need to find a way of making small building optimisation more cost-effective in order to meet our wider industry net zero targets and keep global temperatures below 2ºC.
This is a problem that needs to be quickly addressed, especially as the previously loose net zero definitions and half-hearted pathways are being scrutinised. Thanks to a new initiative launched by the Royal Institute of British Architects that aims to remove any ambiguity around the much-used ‘net zero carbon’ phrase, smaller buildings might soon become a larger part of the conversation. The Institute’s UK Net Zero Carbon Buildings Standard will work to verify whether a building truly is ‘net zero’, and should lead to a greater understanding of the steps that all buildings, not just large buildings and new builds, can take to actually cut or offset their emissions.
Helping organisations meet their net zero targets
Demand Logic has historically focussed on large buildings, typically commercial offices, which have always benefited from the aforementioned economies of scale and centralised data networks. Recently, however, we have begun working with a much wider breadth of properties including small buildings with little to no existing data networks and a patchwork of different systems and assets.
With small buildings, it has become increasingly clear that there are some real efficiency gains to be made if operations are centralised as much as possible. This goes beyond energy efficiency and into much wider maintenance efficiency with the possibility to reduce operational expenditure by targeting maintenance across several buildings in the same way that you can in a larger building and single floor plate.
A centralised process is important which is why asset management companies that have large portfolios of small buildings are at an advantage. Managing Agents also have the potential to capitalise on this but, due to them often being client-led, they can have a decentralised, building-by-building approach. It’s possible, however, that market demands may see Managing Agents rising to meet this challenge, helping their clients and the industry deliver on their net zero goals.
Through Building Analytics technology, Demand Logic offers building teams insight into how their operations can be more efficient. And by knowing where costs and savings can be made, they can save both money and the planet too.
Find out more about what we do by contacting us via email at info@demandlogic.co.uk or call +44 20 7193 4212.