Commercial Real Estate Asset Management Challenges in Operating a Building to Its Full Potential
Maximizing a building’s operational efficiency and financial performance requires overcoming various challenges across multiple categories. Below is a breakdown of key obstacles in each area:
Power Quality & Electrical Efficiency
- Poor power quality leads to increased maintenance costs, equipment failures, and excessive energy consumption.
- Low power factor (e.g., 80 or below) causes inefficiencies and higher electricity bills.
- Voltage irregularities, harmonics, and unbalanced 60Hz waveforms shorten equipment lifespan.
- Breaker heat and electrical distribution inefficiencies create internal risks.

LED Lighting Strategy & Occupancy Sensing
- Lighting inefficiencies drive excessive energy consumption and operational costs.
- Poor occupancy sensor settings leave lights on unnecessarily.
- Suboptimal lighting levels in warehouses/manufacturing reduce productivity and safety.
- Lack of sealed LED fixtures leads to premature degradation.
Indoor Air Quality & HVAC Performance
- Poor air quality results in higher HVAC operational costs, increased employee absenteeism, and equipment degradation.
- High metal particle concentration in industrial environments.
- Excessive moisture buildup, leading to mold and corrosion.
- Inefficient HVAC filtration systems increase OpEx
Refrigeration Efficiency
- Cooling inefficiencies in refrigeration systems increase energy costs and maintenance expenses.
- Oil buildup and friction reduce compressor efficiency.
- Inefficient heat transfer slows cooling cycles.
- Outdated refrigerants limit performance optimization.
Flat Roofing System & Thermal Envelope
- Aging or inefficient roofing systems increase energy loss, HVAC loads, and maintenance expenses.
- Poor insulation leads to heat gain/loss.
- High roof temperatures accelerate material degradation.
- Lack of long-term waterproofing solutions results in leaks and interior damage.
Missing Utility Incentives & Rebates
- Many asset managers fail to capitalize on available utility incentives and rebates that can reduce operating expenses.
- Lack of awareness of Valley Initiative Programs (8-10% utility savings).
- Interruptible Power Credits not being utilized, leading to missed savings from demand response programs.
- Inadequate custom & lighting rebate applications for energy-efficient upgrades.