EMERYVILLE, CA—Gridium's new electric utility rate optimizationtool has cut approximately $47,000 in operating expenses at TheTowers Emeryville, an 814,000-square-foot class-A office park thatis part of KBS' client portfolio. KBS used the software company'sdata analytics tool to identify annual utility rate cost savings of$0.06 per square foot.

Products and services that reduce operating costs are especiallysignificant as property owners grapple with concerns surroundingCOVID-19, according to Brent Carroll, asset manager for The TowersEmeryville and senior vice president for KBS.

"We are always looking for ways to manage operating costs whiledelivering unmatched properties and services to tenants in each ofthe markets that we invest," says Carroll. "The COVID-19 pandemicand shutdown have highlighted the need to keep expenses in check sothat we can focus on exceeding the expectations of our investors,partners and tenants. Assessing current and future electricity useto decrease operating costs will be particularly important in theaftermath of the pandemic. Products like Gridium's optimizationtool help us to achieve this goal."

Building from its foundation of patented machine-learningtechnology, Gridium's new electric utility-rate optimizationscombine interval meter data with a proprietary rate engine toindependently verify both historical bills and optimal rateselections. This technology, validated for accuracy and precisionin an assessment performed by the Lawrence Berkeley National Lab,enables buildings to claim utility bill credits from incorrectbills and to save money going forward by switching to the optimalelectric utility rate for its own unique energy-use profile,explains Tom Arnold, CEO of Gridium Inc.

"Our interval-data powered technology finds energy and operatingcost savings overlooked by legacy bill-pay providers running onspreadsheets," says Arnold. "Similar to a double-entry accountingsystem, Gridium's technology independently calculates a building'shistorical electric utility bills. These benchmarks allow foraccurate comparison and verification of historical bills, and forthe identification of billing errors. And, by calculating thesecomparison benchmarks under all eligible hypothetical ratescenarios for each building, Gridium's technology identifiesoptimal rate recommendations that lower future operatingexpenses."

Gridium's data analytics tool is part of a property managementstrategy needed in times of economic uncertainty, Arnold adds.

"Tenants in this KBS property should know their buildingmanagement team is doing a great job during these unprecedentedchallenges," says Arnold. "This estimated $47,000 drop in annualenergy operating expenses is just one piece of that."

Diana Rivers, associate director of asset services at Cushman& Wakefield, is handling property management services for TheTowers Emeryville on behalf of KBS.

"During these challenging times, KBS and Cushman & Wakefieldare deploying new COVID-19 operating protocols, sharing informationquickly and preparing for the reboot," says Rivers. "Part of thisis managing energy costs so that we can deliver high-value space totenants and Gridium makes that easy. It's so much more than thedramatic views and outdoor lounges here that make these buildingsproductive and valuable to tenants."

The Towers Emeryville is a three-building waterfront officecomplex located at 1900-2200 Powell St. The property's amenitiesinclude a recently renovated conference center, tenant lounge,fitness center, outdoor employee lounge areas, a bocce ball court,bike storage, locker rooms, showers, 3:1,000 secure parking, 24/7security, close proximity to public transportation, a car-washservice, electric vehicle charging stations, and food and retailamenities.

"Innovative and proactive property management strategies willcontinue to be critical for office landlords as companies return totheir workplaces following COVID-19," Carroll tells GlobeSt.com. "Akey element of those strategies will be technology geared towardefficiency and cost savings, which will enable investors toincrease ROI while implementing processes that are good for theenvironment as well as their tenants."

In 2015, California set an ambitious goal to achieve a statewidecumulative doubling of energy efficiency savings, and reductions inelectricity and natural gas end uses relative to 2015 estimates byJanuary 1, 2030. Senate Bill 350 (De León, Chapter 574, Statutes of2015) codified this goal and directed the California EnergyCommission to set annual targets to accomplish it. The CEC hascollaborated with state agencies, utilities and other stakeholdersto identify and quantify the energy savings potential.