Protecting Your Bottom Line: Smarter Ways to Tackle Rising Utility Costs
Across the country, energy and utility costs continue to rise, with increases in many regions ranging from 10-15%. For property owners and managers, this upward trend represents a significant impact on operations, as utilities often account for 20-30% of a building’s operating budget.
Strategic property management isn’t just about maintaining a building; it’s about optimizing performance, protecting asset value, and advancing sustainability goals. As utility costs rise, a proactive approach to energy management can meaningfully improve NOI and strengthen long-term asset health. Below are several key focus areas that consistently create measurable results.
Prioritize HVAC Optimization
Heating, ventilation, and air conditioning (HVAC) systems typically represent approximately half of a building’s monthly electric usage. Establishing a preventative maintenance program with a trusted HVAC contractor is essential. Regular inspections reduce emergency repairs, extend equipment life, and ensure systems are aligned with actual building occupancy.
Simple steps like scheduling equipment runtimes based on tenant usage and implementing setback temperatures during nights and weekends can dramatically reduce energy consumption and save meaningful dollars.
Modernize Lighting for Immediate Impact
Lighting upgrades remain one of the most effective and cost-efficient improvements a property can make. LED fixtures use up to 75% less energy, and pairing them with occupancy sensors helps eliminate unnecessary usage while extending fixture lifespan.
A consultation with a lighting and controls specialist is often all it takes to identify quick wins with fast payback periods.
Leverage Energy Procurement Expertise
With energy markets becoming increasingly complex, partnering with a knowledgeable energy services provider can be a game-changer. These experts competitively bid for electric and gas supply, secure optimal rates, and lock in pricing for various terms, providing stability in an environment where rate volatility is common.
This approach gives owners greater predictability and helps protect operating budgets over the long run.
Engage Tenants in the Process
Tenant engagement is one of the most overlooked contributors to energy savings. When tenants understand the property’s sustainability goals and how their daily actions affect consumption, behavior begins to shift.
Consistent communication, paired with a shared vision, creates alignment and drives collective progress.
Planning for the Future
As utility costs continue to rise, property managers who embrace a proactive, data-driven approach will be best positioned to protect value, control expenses, and serve their tenants. The strategies above not only reduce consumption today but also support the long-term resilience and marketability of every asset.
Learn more about NAI Burns Scalo’s Property Management Services or contact Bob Fittipaldo and Lori Beretta.
About NAI Burns Scalo
NAI Burns Scalo, an investment and advisory organization headquartered in Pittsburgh, Pennsylvania, is an integral part of NAI Global, which spans over 325 offices across 55 countries. Currently with offices in Florida, Pennsylvania, and West Virginia, our strategic positioning ensures exceptional outcomes for clients with access to over 6,000 professionals worldwide. With nearly 100 dedicated specialists, we seamlessly integrate into this expansive network, excelling both locally and globally.
Since 1956, we’ve been at the forefront of providing commercial real estate services such as brokerage, property management, development, and construction. We’ve learned the ropes, navigated the tides, and honed expertise that only comes from over six decades of experience. This is about more than just finding a commercial space for your business. It’s about delivering life-changing real estate experiences to propel you forward. To learn more, visit NAIBurnsScalo.com.
