ENTOUCH Smart Building Solutions

The Exponential Value of a Smart Building

Paired with smart tech, the exponential value of a smart building builds and builds, saving $100s/FT2.

Commercial buildings and industrial facilities generate more than 41 percent of total greenhouse gases in the U.S., and while energy initiatives have reduced overall greenhouse gas emissions, approximately 30 percent of energy used by today’s commercial and industrial facilities is used inefficiently or wasted, reports the U.S. Department of Energy. Addressing this waste is the key to unlocking the value of a smart building, and facilities managers need to know why.

How Do Smart Buildings Cut Energy Costs?

Commercial and industrial facilities spend $3 per square foot on energy costs. While this seems trivial, a 10,000 square-foot facility would imply a $30,000 energy cost. If the same facility drives the per square foot cost down to $1.50, the energy savings would amount to $15,000. But, how is this possible?

Using new technology, including the Internet of Things (IoT), sensors and advanced analytics, smart building solutions identify trends and patterns in energy use, which can be leveraged to control energy-consuming systems.


For example, heating, ventilation and air conditioning (HVAC) systems may run efficiently independently, but airflow throughout a given facility can result in the entrapment of heat in certain areas, which impact the ability of the entire HVAC system to function. In addition, open doors and occupant actions influence the flow. However, an effective facilities management system analyzes data throughout a facility to gain control of all systems, creating a comprehensive system that works together more efficiently.

Smart Buildings Lead to Lower CRE Costs

Reducing a company’s per-square-foot energy costs means major savings for business owners, but there is another side to the equation. Lower energy costs contribute directly to lower overall costs to the building owner, not just the business-tenants. In fact, using sensor-based technologies to understand space utilization can lower corporate real estate (CRE) costs by $30 per square foot, reports EPOnline. In other words, the building owners’ fewer overhead expenses result in lower leasing rates.


Smart Building Technologies Lessen Labor Costs

Another factor in the value of a smart building is based on how smart systems impact occupant experiences. Occupants include a building’s, tenants, customers and other individuals within the facility. Since labor costs often represent a company’s largest expense, nearly $300 per square foot, the key to driving labor costs down lies in boosting productivity. One of the most effective ways to improve productivity is keeping employees comfortable and safe, and less turnover also equates to fewer training costs and other factors that go into hiring new employees. Furthermore, smart building technologies improve occupant safety, which may have significant benefits for a company’s insurance premiums.

The Value of a Smart Building Comes From Lower Per-Square-Foot Energy Costs

There are many factors to prove the value of a smart building, and a 10-percent reduction in energy costs among commercial and industrial facilities could save more than $40 billion in the U.S. alone. This is why facility managers should be paying attention to the evolution of smart buildings, and the value of smart building solutions is also eco-conscious, ensuring the next generation can thrive in this world too, bolstering your company’s public image along the way.

Find out how your company can reap the value of a smart building by contacting ENTOUCH online or by calling 1 (800) 820-3511 today.