Office Building Energy Solutions

Commercial Energy for Office Buildings

Office buildings use electricity and natural gas primarily for space heating and hot water. In deregulated markets, building owners and property managers can significantly reduce operating costs through competitive procurement—improving NOI and building competitiveness.

Strategic energy procurement directly impacts property performance and tenant satisfaction.

Electricity & Natural Gas: Dual Energy Strategy

Most office operations use both electricity and natural gas to power their facilities. Understanding how to optimize both commodities is essential for comprehensive cost management:

Electricity Usage

• Lighting and HVAC systems
• Electric motors and equipment
• Refrigeration and cooling
• Office equipment and computers
• Backup power systems

Natural Gas Usage

• Process heating and steam generation
• Space heating systems
• Hot water heating
• Cooking equipment
• Emergency generators

By managing both energy commodities strategically through competitive procurement in deregulated markets, businesses can reduce overall energy costs by 15-30%.

How Office Buildings Use Commercial Energy

Commercial energy serves several key functions in office properties:

HVAC Systems

Commercial heating for tenant comfort:

• Perimeter heating systems
• Rooftop units with gas heat
• Boiler plants for hydronic systems
• Makeup air heating units

Domestic Hot Water

Essential building services:

• Restroom facilities
• Break rooms and kitchens
• Fitness center (if applicable)
• Common area amenities

Common Area Operations

Shared building spaces:

• Lobby and reception areas
• Conference and meeting rooms
• Parking garages (entrance heating)
• Building management facilities

Tenant Amenities

Value-added services:

• On-site cafeteria/food service
• Fitness centers
• Executive dining rooms
• Tenant improvement areas

Typical Office Building Gas Usage

Application	% of Total	Peak Demand
HVAC / Heating	70-85%	Winter months
Hot Water	10-20%	Business hours
Food Service	5-15%	Meal periods
Other	0-5%	Variable

Cost Reduction Strategies for Office Buildings

1. Competitive Supply Procurement

In deregulated markets, choose your gas supplier:

Fixed-Rate Contracts

Budget certainty for property operations:

• Lock in rates for 12-36 months
• Protect operating budgets from volatility
• Support accurate CAM calculations
• Simplify tenant pass-throughs

Index-Based Pricing

Market rates for sophisticated owners:

• Potential savings in favorable markets
• More price variability
• Requires monitoring capability
• Good for owner-occupied buildings

2. Portfolio Aggregation

Property owners and managers can aggregate:

Multi-Building Portfolios

• Combine usage across properties
• Negotiate portfolio-wide rates
• Coordinate contract timing
• Single supplier relationship

Property Management Companies

• Aggregate client properties
• Leverage management portfolio
• Standardize procurement processes
• Share expertise across properties

3. Building Operations Optimization

Reduce consumption without impacting tenant comfort:

Building Automation Systems

• Occupancy-based scheduling
• Optimal start/stop programs
• Night and weekend setbacks
• Holiday scheduling

Equipment Efficiency

• High-efficiency boilers
• Condensing water heaters
• Variable speed drives
• Heat recovery systems

4. Tenant Engagement

Encourage tenant conservation:

Green Lease Provisions

• Energy efficiency commitments
• Submetering and allocation
• After-hours HVAC policies
• Sustainability reporting

Office Building-Specific Considerations

Building Class Differences

Energy management varies by building class:

Class A Properties

• Full-service amenities
• 24/7 HVAC expectations
• Sophisticated building systems
• Higher efficiency equipment

Class B/C Properties

• More basic systems
• Standard business hours HVAC
• Older equipment
• More efficiency opportunities

Lease Structure Impact

Energy costs flow differently by lease type:

Gross Leases

• Landlord pays utilities directly
• Energy savings improve NOI
• Limited tenant incentive to conserve

Triple Net (NNN) Leases

• Tenants pay utilities through CAM
• Pass-through savings to tenants
• Tenant interest in efficiency

Modified Gross

• Shared utility costs
• Base year considerations
• Escalation provisions

Multi-Tenant Considerations

Managing energy for multiple tenants:

• Fair allocation methodologies
• After-hours HVAC billing
• Tenant improvement standards
• Common area energy costs

Industries We Also Serve

Office properties often have related facilities:

• Retail Commercial Energy Solutions - Ground floor retail
• Restaurant Commercial Energy Solutions - On-site dining
• Healthcare Commercial Energy Solutions - Medical office buildings
• Warehouse Commercial Energy Solutions - Business parks

Get Your Free Office Building Energy Analysis

Commercial Energy Advisors helps property owners and managers reduce energy costs. Our services include:

1. Portfolio Analysis: Review usage across your properties
2. Supplier Comparison: Obtain competitive bids for your volume
3. Contract Negotiation: Secure favorable terms and pricing
4. Tenant Coordination: Support pass-through calculations
5. Ongoing Management: Monitor markets and manage renewals

No cost to your property—suppliers compensate us directly.

Whether you own a single office building or manage a national portfolio, Commercial Energy Advisors can help you reduce energy costs while maintaining the comfortable work environment your tenants expect.

Contact us today for your complimentary commercial property energy analysis.