Skip to Content

Let’s Talk Business(800) 550‑6005

Employment Helpline(844) 426-2253

Search Jobs

Property Management Services

Commercial buildings are complex environments. Within them, water, HVAC, gas, and electric systems work separately and together within the building’s smaller ecosystems. Some of the building’s rooms are in shaded areas, some in full sun. Some systems were originally calibrated in the summer, some in winter. To further complicate matters, the humans who occupy buildings have differing needs. All of this means that buildings’ systems are bound to lose efficiency over time. And, when they do, things can get expensive. Enter retro-commissioning.

We’ve sung retro-commissioning’s praises before, but they’re worth repeating. This time, we sat down with Jim Schafer, Project Services Energy Director for PRIDE Industries, who detailed how it translates to cost savings that property managers can put back into their buildings.

First, a review of the basics:

What is retro-commissioning?

Jim Schafer: When a new building is constructed, it’s equipped with a variety of complex systems—from HVAC to electric. To ensure the systems are working correctly and efficiently, the building will undergo a “commissioning” process that includes installation, testing, and implementation of these systems and their sequences of operation. But that doesn’t always happen. “Retro-commissioning” is the same process applied to existing buildings—typically five years old or more.

How does this differ from retrofitting?

Jim Schafer: Retro-commissioning is a more holistic approach. For example, retrofitting tends to be more geared toward replacing equipment. This could mean exchanging conventional lights for LEDs or replacing HVAC pumps and motors. Retro-commissioning may include equipment upgrades, but it also focuses on honing processes and protocols to renew what’s already in place.

When is it time to consider retro-commissioning and why?

Jim Schafer: Once a building gets to be three to five years old, heat, air, water, and gas systems start to fall out of tune. Instead of pre-programmed systems efficiently managing themselves, engineers now must step in and manage equipment manually. Let’s say they turn up the heat a few degrees. Someone else might step in and make another manual change to cool things down a few degrees. Eventually, this will lead to system inefficiency, which means high utility bills. Over time, this will finally lead to system failure.

The same thing happens with water and gas systems. Every time a new building is commissioned, its systems are calibrated to operate under the conditions of that day, season, and year. Those conditions change over time. Case in point: California’s recent wet spell. A system commissioned in March 2019 won’t meet the needs of March 2023. Inefficient systems guzzle energy, resulting in high utility costs. They also break down, resulting in costly downtime that could have been avoided. Finally, tenants will be uncomfortable, and uncomfortable tenants won’t want to stay.

What would retro-commissioning look like in these instances?

Jim Schafer: Engineers would investigate the equipment’s original design—the original intent of a building’s various systems, as far as operations within the building environment. After testing each, they would analyze their findings and then discern an updated sequence of operations (SOO) for each system. Then, they would program the various building automation systems (BAS) and building maintenance systems (BMS) to this updated sequence. They would also know what rebates were available and how to factor them in. It’s all a delicate balance, but, when done right, the benefits are numerous.

What are the benefits of retro-commissioning?

Jim Schafer: Many. Improved system efficiency, leading to extended equipment life. Overall improved building operations. Fewer service calls. Occupant comfort, leading to retention. Updated documentation regarding building systems. Ultimately, what’s most attractive is the overall money saved over time, which can be turned back into the business.

Does it benefit a property manager to consider retro-commissioning purely for sustainability reasons?

Jim Schafer: The short answer is yes. A smaller carbon footprint is becoming increasingly important to sustainability-minded customers and investors. Also, for reasons of sustainability, state and local municipalities, as well as federal agencies, offer rebates for several retro-commissioning measures. Substantial water rebates alone, including those for cooling towers, reduce or even eliminate up-front out-of-pocket costs. There are also programs that pay building owners back for the kilowatt hours they save.

What kind of savings can property managers expect from retro-commissioning?

Jim Schafer: It really depends on how far in decline their buildings’ systems are. In general, reduced operational costs and savings associated with equipment life expectancy can be substantial. Calculating the cost benefits to energy savings ratio is key to a positive ROI.

Beyond cost savings, what are the additional benefits of retro-commissioning?

Jim Schafer: The comfort and safety of occupants, definitely. And tenants who feel safe and comfortable will want to stay, thereby reducing the high cost of turnover. And its’ certainly a high cost, including lost rent income, cleaning, cosmetic repair, marketing to attract new tenants, and other administrative costs. It’s always a best practice to keep good tenants, and it’s just the right thing to do.

When it comes to commercial retro-commissioning—upgrading a facility’s existing systems and protocols—a focus on water conservation makes sense. Water costs have been steadily rising over the last two decades and, in recent years, have skyrocketed. Plus, given ongoing drought conditions in the western United States, conserving water is simply the right thing to do. The good news is that water rebate programs are available in every neck of the woods, so water-wise upgrades can pay for themselves—often with little to no upfront cost. But where can you get rebates and incentives, and what upgrades typically qualify? Here’s what facilities managers and property managers need to know:

First, the where and who. Often, you’ll need to look no further than your county’s water agency. For example, California’s Placer County Water Agency (PCWA) lists seven different rebate programs on its website, incentivizing everything from lawn replacement to high-efficiency toilets. Both the Environmental Protective Agency (EPA) and DSIRE, a project that’s funded by the U.S. Department of Energy, feature comprehensive lists of rebates and incentives on their websites. Programs, including tax incentives, are also available at the state and federal levels.

Now, let’s zero in on the “what”—as in what typically qualifies for water-related retro-commissioning rebates or incentives? The short answer is “lots,” but let’s start with ten of the most common:

Outdoor Water Rebate Programs

Lawn Conversion. Between watering, mowing, aerating, fertilizing, and managing runoff, lawn maintenance is expensive. Watering alone, especially in droughted areas, can cost a small fortune and waste this precious resource. Fortunately, most water agencies offer rebates that will pay you to replace your lawn with a drought-tolerant landscape.

Example: The Metropolitan Water District of Southern California offers a rebate of $2.00 per square foot up to 50,000 square feet of conversion per meter year.

Smart Controllers. By some estimates, incorrect irrigation settings waste up to 50% of a landscape’s applied water. Smart controllers automatically reduce watering times based on weather, soil conditions, and landscape type. They shut off during rain events and can be adjusted remotely via Wi-Fi. Many municipalities offer rebates to replace conventional controllers with new, smart versions.

Example: The City of Chandler (Ariz.) offers rebates of 50 percent of a smart controller’s cost (excluding taxes and installation) up to $250 per unit (max 5).

Irrigation Upgrades. While smart devices can control when a landscape is watered, a switch from traditional spray to drip or rotary nozzles can limit water output and direct it to where it’s most needed.

Example: The Sacramento City Department of Utilities offers these irrigation upgrade rebates, up to $50,000.

Soil Moisture Sensors. Related to smart controllers, sensors “measure the amount of moisture in the ground beneath a landscape and override scheduled irrigation accordingly.” (EPA) The result is water savings of at least 20 percent.

Example: Austin (Texas) Water District offers rebates on flow sensors ($300 each), pressure regulating components (50 percent of equipment cost up to $1,500), spray-nozzle conversion ($4 per nozzle, up to $1,000), and master valves ($100 each for systems installed before 2009 only).

Rain Barrels and Cisterns. An ancient practice, harvesting and re-using rainwater makes sense—and not just because it saves tap water. Rainwater is soft, so grass and other plants prefer it.

Example: SoCal Water Smart lists rain barrel rebates at $35 per 50-199 gallon barrels (max qty. 2) and Cisterns from $250 to $350 (1 per).

Indoor Water Rebate Programs

Low-Flow Toilets and Urinals. By simply limiting the amount of water used per flush, a typical business can reduce water consumption by around 40 percent. Ultra-low and zero-water urinals can decrease water usage by up to 88 percent.

Example: The City of Santa Fe (N.M.) offers commercial toilet rebates from $125 to $500 for high-efficiency toilets with effective flush volumes of 1.28 gallons or less.

Plumbing Flow Control Valves. Designed to maintain water pressure while reducing faucet flow by up to 60 percent, flow control valves offer a substantial bang for the water-saving buck. Plus, rebates abound to get you started.

Example: Several Southern California agencies offer rebates on plumbing flow control valves and laminar flow restrictors at $5 and $10, respectively.

Cooling Towers. Inefficient conductivity controllers lead to unnecessary water loss via the blowdown process. Meanwhile, Ph imbalances lead to scaling-related inefficiencies. Rebates are available that address both issues.

Example: The Southern Nevada Water Authority offers up to $500,000 in cash incentives to upgrade your cooling tower and swamp coolers.

Ice Making Machines and Food Steamers. The typical ice-making machine consumes more water to cool ice than to make the ice itself. Boiler-based food steamers are also water guzzlers. Fortunately, for food services businesses, rebates on boiler-less food steamers and air-cooled ice-making machines are plentiful.

Example: Sonoma Water Organization (Calif.) offers rebates on water-efficient ice makers at up to $600 and food-steamer rebates at up to $200.

Dry Vacuum Pumps. Many businesses, from dental to petrochemical, rely on liquid-ring vacuum pumps. Dry vacuum pumps do the job while conserving water, and most municipalities offer some type of rebate for them.

Example: The Inland Empire Utilities Agency (Calif.) offers up to $175 per .05 HP dry vacuum pumps (Max 2).

Retro-commissioning is hot, and for good reasons. It saves money while promoting sustainability—especially where water is involved. And right now, while rebates are bountiful and water resources scarce, it makes more sense than ever.

Tenant turnover is expensive. On average, it costs around three months’ rent—and that’s on top of vacancy-induced rent loss. Each time a tenant leaves a property, it must be thoroughly cleaned and returned to pristine cosmetic condition. Then there are administrative costs, advertising costs, and costs associated with showing the space. To mitigate these expenses, the obvious answer is tenant retention, but not just any tenant. Most commercial property management companies have experienced at least one bad apple, the tenant who is consistently late on rent (or doesn’t pay it at all), damages property, and violates property rules. All the more reason to make your property one that attracts—and keeps—conscientious tenants. Looking to the experts, we’ve gleaned 11 tips on how to do this. And most of these tips are just as important for in-house facilities managers looking to keep their internal customers happy. 

  1. Occupant Comfort.
    Whether in a workspace or a living space, people want to be comfortable—first and foremost. This includes a moderate temperature, visually appealing lighting, good acoustics, excellent air quality, and cleanliness. A well-maintained HVAC system, coupled with preventative maintenance protocols, goes a long way toward ensuring temperature control and air quality. Sufficient light of a comfortable color, ample insulation, and well-trained cleaning staff are also key, as are reasonable rules for tenant use (quiet periods, storage and disposal provisions, parking protocols, etc.). Not only can these measures keep tenants physically comfortable, studies show a clean, comfortable workspace boosts mental health.

  2. The Right Staff.
    Tenants regularly cite the professionalism and personableness of maintenance and custodial staff. Conversely, they are quick to note when these are lacking. All the more reason to attract and retain staff that’s not only knowledgeable but also friendly and professional in all interactions.

  3. Connectivity/Communication.
    Whether to request a work order or submit a rent payment, quality tenants expect commercial property management professionals to be digitally accessible with a quick (if not instant) response time. They’ll also want you to be available through a variety of channels, including social media, email, phone, and website. Also, be sure to alert tenants, well ahead of time, when maintenance may disrupt a building’s normal activities, and be prepared to answer any questions they may have about the disruption. Blessing and/or curse, constant availability is part of doing business as a commercial property manager today.

  4. Flexibility.
    The pandemic changed the nature of building usage as well as tenant expectations around flexibility. Nowadays, with hybrid schedules and a rapidly changing business world, tenants want to negotiate terms when it comes to lease duration, evolving space requirements, termination options, enhanced cleanliness protocols, and even furniture rearrangement.

  5. Relationships.
    Convenient as a digitally connected world is, genuine human-to-human relating can’t be underestimated. Small gestures—knowing tenants by name, being aware of their likes/dislikes, and reaching out at holidays—can make them more likely to view your interactions as relational, as opposed to solely transactional. Likewise, a community newsletter cultivates a sense of communal inclusion. In these contexts, tenants will be more inclined to work collaboratively with you and their fellow tenants.

  6. Proactive Leasing.
    Don’t assume your tenants will remember when it’s time to renew a lease. Reach out to them in advance and use technology to make renewal as easy as the click of a button. Moreover, given the cost of turnover, it may be worth it to offer lease-signing incentives like a month of reduced rent—and well before lease renewal dates.

  7. Preventative Maintenance.
    Quick maintenance response times are imperative, but preventing a problem before it occurs? That’s golden—and not just for tenants. By addressing issues before they become irreparable, preventative maintenance ultimately cuts commercial property management costs.

  8. Fair Rules and Enforcement.
    Because commercial buildings are often communal, the rules therein should be about maintaining a safe, comfortable space for everyone. Allowing a mediocre tenant to blare music in their office may result in a quality tenant’s departure. Establish, upfront, what the rules are and why they are in place. Then, fairly and consistently enforce them.

  9. Move-In and Out Inspections.
    Legally mandated in some states, move-in and move-out inspections are a best practice whatever your facility’s zip code. Put simply, they hold everyone accountable—tenants, landlords, and property managers—in a straightforward way.

  10. Get Feedback.
    Surveys make it easy to find out what’s working, and, more importantly, not working for your tenants. But it’s not enough to gain their insights. Of equal importance is acting on them. If a particular issue is cited by several tenants, it needs to be addressed promptly and thoroughly. If similar amenities are requested by many tenants, it may be worth it to provide them.

  11. Be Mindful of Competition.
    What are your competitors’ leasing rates? The condition of their buildings? Extra perks for tenants? What amenities do they have that you don’t or vice versa? Commercial property management is more competitive than ever, so it pays to be aware.