Use Cases
Why energy costs are exploding and what that means for your real estate portfolio
May 25, 2022
Why energy costs are exploding and what that means for your real estate portfolio
How can rising energy costs negatively impact property returns?
Energy costs have risen steadily in recent years, and the cost of providing energy to a property can represent a significant portion of operating costs. Rising costs are making it increasingly difficult for property managers to maintain the value of their property and the associated return without having to make major investments. Another factor that can negatively impact property returns is the increasing demand for energy-efficient buildings. With the introduction of laws and regulations designed to improve the energy efficiency of buildings, properties that are not energy efficient are becoming less attractive. One way to avoid these rising energy costs is through the use of energy efficiency measures. By implementing energy efficiency measures, energy cost reduction can increase a property's return on investment. By incorporating IoT sensors into properties and using AI to analyze the data, energy costs can be effectively reduced.
What factors are driving up energy costs?
In recent years, utility costs for heating in real estate have increased significantly. This is partly due to the increased price of fossil fuels such as oil and gas, but also due to the inefficient use of energy in many buildings.
How can property owners reduce costs for their tenants to increase the attractiveness of their property?
The ancillary costs for heating have risen steadily in recent years. It doesn't matter whether it's a single-family home, an apartment or an office building. Fossil fuel prices have soared in recent years, and heating costs have followed suit.The good news is that there are several ways to reduce utility heating costs. IoT and AI-driven energy optimization allows property managers to increase the energy efficiency of their buildings, thereby reducing heating costs.
