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Why Building Owners Should Review The Business Case For Facility Optimization

Date: 10 February 2017

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9 pages

EXECUTIVE SUMMARY

Costs associated with managing real estate portfolios are often handled individually. For example, energy management may initially be approached as a way to reduce utility costs only. Similarly, building owners try to squeeze outsourced facility management contracts for savings. When handled in isolation, these strategies will limit the amount of achievable cost savings – leaving money on the table. Recent facility management advances have sought to optimize facilities more broadly, creating larger pools of costs to manage down. This Verdantix report investigates the potential savings that can be derived from facility optimization and why the default reaction of ‘squeeze facility management contracts’ may be counterproductive to achieving the largest savings possible.

TABLE OF CONTENTS

Why Building Owners Should Review The Business Case For Facility Optimization
Real Estate OPEX Cost Reduction Opportunities Are Concentrated Across A Few Categories
Legacy Facility Management Strategies Limit Potential Cost Savings
Facilities Optimization Opens Up Untapped Savings For Building Owners
Facility Optimization Management (FOM) Strategies Need Technology Applications To Bring The Required Data And Control Capabilities

TABLE OF FIGURES

Figure 1. Five Categories Comprise Over Three-Quarters Of Real Estate OPEX Budgets
Figure 2.
More Progressive Saving Strategies Result In Higher Potential Savings

ORGANIZATIONS MENTIONED

Accruent, Ameresco, American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE), Archibus, AT&T, Building Owners and Managers Association (BOMA), CBRE, Collectiveview, Computerized Facility Integration (CFI), CoreNet Global, DEXMA Technologies, Dude Solutions, eMaint Enterprises, EnerNOC, Envizi, Fitbit, FM:Systems, IBM, The Institute for Building Efficiency, iOffice, JLL, Johnson Controls, MCS Solutions, Panoramic Power, Patagonia, Planon, Real Asset Management, Qube Global, SAP, Schneider Electric, Serraview, Service Works Group (SWG), Siemens, Trimble, Verisae