Better Buildings, Bigger Savings: Why Accurate Data is Key to Decarbonization
The push to cut carbon emissions is picking up speed, and the real estate industry is right in the middle of it. With rising energy costs and stricter regulations, building owners can no longer afford to ignore the need for efficiency. JLL’s deep dive into the energy performance of 46,000 buildings across 14 cities makes one thing clear: accurate data is the key to cutting costs, reducing emissions, and future-proofing properties.
The Power of Accurate Utility Data
JLL’s analysis used energy benchmarking data from over 5.9 billion square feet of commercial space—enough energy to power 11.5 million homes for a year. The findings? A staggering 65% of office buildings and 75% of multifamily properties could face major financial and operational risks by 2030 if they don’t improve energy performance. This underscores the value of precise utility data in identifying inefficiencies and developing tailored decarbonization plans. Without accurate data, measuring performance over time and tracking the impact of investments becomes impossible.
Data-Driven Savings and Performance
Accurate energy data isn’t just about checking boxes for compliance—it’s a powerful tool for reducing costs and improving building performance. Simple energy efficiency upgrades can slash energy use by 10-40%, saving billions of dollars every year. Smart tech, like JLL’s AI-powered HVAC optimizer Hank, has already shown it can cut energy consumption by 20% while making buildings more comfortable and attractive to tenants.
A Strategic Approach to Decarbonization
JLL’s research highlights three must-do actions for building owners:
- Boost efficiency – Optimize operations and retrofit buildings to reduce energy waste.
- Go electric – Swap out gas-powered systems for high-efficiency electric alternatives like heat pumps.
- Use clean energy – Tap into solar and other renewable sources to cut costs and emissions.
Building Performance Standards (BPS) are emerging as a critical mechanism for enforcing decarbonization. Cities like New York and Seattle are setting stringent energy use or carbon intensity limits, with penalties for noncompliance. Early action not only helps avoid fines but positions buildings as market leaders in sustainability.
Looking Ahead
Decarbonizing buildings isn’t just good for the planet—it’s a smart business move. As JLL’s CEO Christian Ulbrich puts it, real estate has a major role to play in fighting climate change, and those who act now will have a competitive edge. The key? Use accurate data, measure performance over time, and make strategic upgrades that drive real savings. The future of real estate is sustainable, and the time to start is now.
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