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Just like utility costs deserve more attention than security costs, we want to cut back on the specific utility line items that will have the biggest impact on our NOI. In the chart below, you’ll notice that Lighting and HVAC are by far the two biggest guzzlers of your energy bill.

Figure 6: Commercial Sector Electricity Consumption by End Use (2003)

This week I’m going to analyze several HVAC recommendations from Energystar.gov’s website that cover the basics:

Change your air filters regularly

A dirty filter requires the HVAC system to work harder to change room temperature, thus, wasting energy. Also, too much accumulated dust and dirt over time can lead to a system failure.

Tune up your HVAC equipment on an annual basis

Intuitive… just like a car needs a yearly tune-up to stay efficient, so do your HVAC systems.

Install a programmable thermostat

Most likely, your tenants are only occupying the building from 8 AM – 6 PM. 14 hours a day the building is unoccupied, so if your systems are still maintaining a 73-75 degree temperature this summer while no one is in the building, you’re wasting money. A programmable thermostat is a simple solution.

Seal your heating and cooling ducts

According to Energy Star, sealing and insulating ducts can improve the efficiency of your heating and cooling system by as much as 20 percent — and sometimes much more.

If you’ve already implemented these methods, then you’re operating at a high cost efficiency for 30% of your electric bill.  Tune in next week to learn about fixtures, lamps, ballasts, and bulbs, as I show you how to cut lighting costs!

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