MIAMI—We just celebrated Earth Day Friday, which brings to mind how commercial real estate is impacting its communities with utilities use. Property managers can play a vital role in helping the environment—and helping a landlord's bottom line.

GlobeSt.com caught up with Chris Normandeau, director of FS Energy, the energy management and advisory subsidiary of FirstService Residential, to get his take on what's really at stake in the energy efficiency movement in part one of this exclusive interview. Stay tuned for part two, in which he will discuss simple strategies association boards and property managers can start with.

GlobeSt.com: Why should association boards and property managers be prioritizing energy efficiency in their communities?

Normandeau: Nearly 40 percent of US energy consumption can be attributed to residential and commercial buildings, according to the U.S. Energy Information Administration. Multifamily buildings, which represent a substantial and growing portion of the residential properties in the US, contribute significantly to this energy consumption. This is true of both older buildings that do not meet today's energy-efficient standards as well as newer buildings that do not put a focus on proactive property management.

These inefficiencies can hurt the environment and cost a building's residents and property managers big dollars. But by simply prioritizing smart energy efficiency strategies and investing in a few simple and immediate changes, association boards can provide significant energy savings that translate into substantial financial savings for the property and, as a result, its residents.

GlobeSt.com: What kind of savings are we talking about?

Normandeau: Industry-wide, the American Council for an Energy-Efficient Economy estimates that comprehensive retrofits and other energy-saving measures in multifamily buildings can improve energy efficiency by 15% for electricity and up to 30% for natural gas. That's nearly $3.4 billion in yearly savings.

For example, simple changes like replacing common area lightbulbs with LED bulbs can reduce the common area portion of the electricity bill by 10 to 20%—or more depending on the building and what region it is located in—and typically pays for itself in one to three years. In South Florida, FS Energy—FirstService Residential's energy management and advisory services affiliate—made energy savings recommendations in 2016 that resulted in $3.8 million in savings for the buildings in its portfolio. In many cases, it's typical for these energy efficiency strategies save buildings in the South Florida portfolio around 20 to 30% or more on their utility spend, or $100,000 or more a year.

In addition to financial savings, these same measures can significantly reduce the overall carbon footprint of buildings. For example, data collected from FS Energy New York shows a 15% reduction in the carbon footprint of FirstService Residential's New York portfolio since 2010. On an annual basis, FS Energy procures—energy purchasing—approximately 275 million KWH and 20 million therms of gas, contributing to a 10.5% and 8.4% cost reduction on natural gas and electricity, respectively.

GlobeSt.com: Why should association boards and property managers be prioritizing energy efficiency in their communities?

GlobeSt.com: What kind of savings are we talking about?

Instant Insights /

Are You Leaving Hard, Cold Green Cash on the Table?

Related Stories

Recommended For You