A True Building Operating System Reduces Operational Expenses
Inspiration struck Rudin Management leadership John Gilbert (EVP & COO) and Gene Boniberger (SVP, Building Operations) when Con Edison approached the real estate family to participate in a smart grid demonstration project.
The utility offered to share real-time data to positively influence commercial building operations and the Rudin Team was to optimize safety, comfort, and operations in response. For example, when Con Edison signaled the warning of an impending blackout, Rudin’s building could now react by grounding all elevators to the nearest floor, avoiding the stress on Building Operators and Tenants caused by entrapments. However, in order for Con Edison’s notification to actuate appropriate changes on Rudin’s vertical transport, BMS, or tenant communication systems, a centralized, manufacturer-agnostic platform was necessary to “catch” the utility signal, merge it with internal building system data, engage the operator, and automate any necessary sequencing.
The value of such a platform would empower the operator with enhanced situational awareness, with benefits that went well beyond the smart grid project. It was clear to Rudin that such a system represented the natural next evolutionary step in facilities operations management, and so began its survey of the real estate technology market. Exhaustive market research uncovered no product offerings with the holistic, building-wide functionality which the company sought, and available solutions were siloed, limited to reporting, and almost all were missing any prescriptive or predictive insight.
Unable to find what they were looking for on the open market, Rudin took matters into their own hands and commissioned the development of the world’s first operating system for the built environment. Powered by predictive analytics, and infused with the collective experience of its own operators, it experienced firsthand the power of machine and biological intelligence unified.
At 345 Park Avenue, a flagship commercial property in the Rudin Management portfolio, the new building operating system provided true situational awareness, creating real-time correlations between internal and external data. This 1.8 million square foot office building contains a BMS, smart meters, a fire alarm system, and turnstile access control system. These systems do not have the inherent ability or intellect to maintain historic data, communicate across protocols, or make adjustments based on the holistic building environment. In order to provide a true manufacturer agnostic system, it was necessary for Prescriptive Data to retrofit sensors for each data point, normalize data to be understood by this new operating system, and validate the data using a third party.
Prescriptive Data’s first step towards accomplishing the project goals included using the operating system Nantum® to unite the various subsystems within the building, programmatically discover correlations across the siloed functions, and capture detailed building operational patterns. By aggregating these data sources, Nantum® was able to predict and optimize more efficient startup times and reduce utility demand in response to real time occupancy and environmental changes while providing building engineers with a single-pane-of-glass view into all building systems.
In the hands of the Rudin Management operations team, Nantum® quickly yielded a 11% year-over-year reduction in electric consumption and an 8% year-over-year reduction in steam consumption from 2014 to 2016 over the trailing five-year average, 70% reduction in hot/cold calls, and optimized operations. Over the three-year period, this amounts to $0.82 a square foot or about $1,515,000 reduction in energy spend. If you apply a 5% cap rate to the 2016 savings of $660,000, the value of this property increases by $13,200,000. Additionally, for installing a RTEM (Real Time Energy Management) system, this building qualified for a NYSERDA grant contributing $155,000 towards the cost of the project. This energy savings also put 345 Park Avenue on the path of success towards the New York City Mayor’s Carbon Challenge, which aims to reduce greenhouse gas emissions 50% by 2025 and 80% by 2050.
This Week’s Sponsor
Prescriptive Data is focused on the intersection of IoT, big data, and machine learning as applied to built spaces. Our flagship cloud-based building operating system, NANTUM applies machine learning to synthesize predictions from live and historic data to optimize operational efficiency, thereby increasing the underlying value of real estate assets. www.prescriptivedata.io
CoRE Tech 2017 will be held on Nov. 14 & 15 at the Santa Clara Convention Center in Santa Clara, CA. The event is a unique gathering of the most proactive, visionary corporate real estate and facilities executives who come together to focus on innovative automation and technology strategies to help achieve their organization’s real estate goals.
- Global Speakers and True Thought Leaders
- Leading-Edge Education Program
- Executive Briefings and Tours in Silicon Valley
- Tech Showcase Featuring the Industry’s Most Innovative Tech Solutions
UPCOMING REALCOMM WEBINARS
CRE Tech Innovation Showcase - Uncovering the Next Generation of New Ideas - 7/12/2018
Never before in the history of the Commercial Real Estate market has technology been so prevalent. Since 2009, hundreds—if not thousands—of companies selling tech to the Commercial Real Estate Industry have emerged. Estimates now suggest there are more than 2,000 new CRE Tech companies in the space. The sheer number of new companies makes it almost impossible to keep up and organizations are struggling to establish an effective process to discover, organize, vet, test and implement new technologies. This webinar will evaluate the categories of technologies, best practice criteria, and clarify different solutions that are making their way to the top of the list.
Shaun Klann has over 15 years of experience dedicated exclusively to transforming the concepts of the ‘Smart Building' industry into reality. His expertise includes engineering, implementation, and strategic consulting services that pair current day technologies with innovative deployment tactics and strategies. Shaun is a proven thought leader in the area of connected real estate and has received numerous awards for his dedication to this market segment, including an award recognizing him as a top 40 under 40 to watch in the space of real estate technology.
Chip Pierpont manages and provides expert guidance on the development and execution of requirements/solutions for building operations and technologies for General Services Administration (GSA), a Public Buildings Service (PBS) government agency tasked with managing government buildings and real estate, providing product and service procurement support, and developing policies and regulations. The landlord for the civilian federal government, PBS owns or leases 8,700 assets, maintains an inventory of more than 370 million square feet of workspace for 1.1 million federal employees, and preserves more than 481 historic properties.