In The News
Jamestown’s Latest Strategy Is Leaning Into Tech Partnerships
Jamestown L.P., a global real estate investment firm known for its innovative approach to property management and development, has been increasingly focusing on integrating technology partnerships into its strategy. With $11.6 billion in assets under management across the U.S., Europe, and Latin America, Jamestown has been at the forefront of industry trends such as sustainability and mixed-use developments. The company has implemented an internal program called Innovation Ideas, encouraging employees to submit tech ideas for use in their properties. This initiative has led to successful implementations of various technologies, from ChatGPT to foot traffic analysis tools, across their portfolio.
One of Jamestown's notable tech partnerships is with Prescriptive Data, a company that uses AI to optimize building operations. At properties in San Francisco and Washington, D.C., Jamestown has utilized Prescriptive Data's technology to more efficiently run HVAC systems. The results have been impressive, with their San Francisco property seeing a 260 percent return on investment. This partnership is part of Jamestown's broader sustainability program, which was launched in 2008 and focuses on reducing utility costs and carbon emissions. The company's approach to tech integration involves piloting various projects, learning from both successes and failures, and relying on the experiences of other major real estate firms to inform their decisions.
Outdated Utility Data Systems Are Stalling the Renewable Energy Revolution
Energy is not created equally. Unlike burning fossil fuels like gas and coal, renewable energy allows us to consume energy with very little greenhouse gas emissions. But, as sustainable as renewable energy generation can be, it often isn’t reliable enough to power an entire electricity grid. Because renewable energy supply and energy demand are both variable, even the cleanest energy grids often need a fossil fuel component. Fossil fuel plants can be quickly turned on and scaled up when demand peaks, preventing disruptive or dangerous power outages.
These peak demand times are also when power is most expensive. Some utilities calculate the energy rate for a whole year based on a property’s peak demand segment. To lower emissions and energy bills, buildings need to use data from utilities about energy sources and consumer demand at any given time. Most advanced energy management and BMS systems can manage energy using utility data, but obtaining the data in a usable format is not always easy.
Utility companies are also not created equally. Some have portals that allow consumers to directly access real-time data about the grid. For example, New York’s Con Edison has an API that allows third parties to import data easily into energy management systems. But, not all utilities are as sophisticated as the country’s oldest grid. “In a perfect world, every utility company in the U.S. would update their metering infrastructure and allow real estate and technology companies to access their pricing and demand information in real time via API,” said Gary Chance, CEO of Nantum AI. Unfortunately, most utility companies don’t have the incentives or resources to create and maintain such technology. The U.S. has thousands of electricity companies, a number that is growing due to the increasing prevalence of options for customers to choose where they get their power.
A Guide to the Building Efficiency Mandates Sweeping Across the U.S.
Around 30 U.S. cities are implementing new building efficiency rules to reduce carbon emissions, and our interactive guide showcases a selection of them.
Property owners, especially those with national portfolios, are facing the need to navigate various regulations, and compliance may require significant investments and resources.
The consequences of non-compliance extend beyond fines, potentially affecting property value and tenant relationships, underscoring the importance of strategic preparedness.
The Urban Green Council estimates that 40 percent of NYC multifamily buildings and 80 percent of office properties could offset their emissions by the 2030 requirements using only renewable energy credits. “Renewable energy credits aren’t a great indicator of carbon emissions reduction,” said Byron Avery, VP of Strategic Sales at Prescriptive Data, a real estate tech provider that helps buildings comply with Local Law 97 and other performance standards nationwide. “Owners make the biggest impact by improving the buildings and decarbonizing at the source, rather than buying renewable energy credits.”
Building Management Systems Adjust to a “Net Zero” World
Reporting on carbon emissions is no longer voluntary for much of the corporate world. The EU has had climate disclosure regulations in place for just over a year. Cities and states around the U.S. also made their own disclosure reporting rules last year, most notably California, which implemented its requirements last October. So far, the Federal government has failed to enact the SEC’s proposed new reporting standards, but it is expected to be front and center on the regulatory agenda session that starts in April of this year.
Even without federal oversight, there is more pressure than ever for companies to make climate commitments. Climate activists are increasingly targeting corporations. Investors are refusing to invest in companies without a climate action plan. Young workers are preferring to work for companies that have a sustainability-minded corporate culture.
All of this has led many companies to make carbon “net zero” pledges. These are corporate initiatives that require the company to reduce its carbon footprint to zero by a certain date. Since there is no definitive definition for net zero, some companies have tried to use carbon offsets to hit their goals. But this tactic has faced scrutiny, leading more and more companies to go even further with their sustainability goals. Of the largest 500 global companies, 66 percent now have climate commitments, 39 percent of which have a net zero target. A growing percentage of them (15 percent) are going even further by committing to being powered only by renewable energy in the near future.
Now, buildings are starting to feel the pressure from this new corporate landscape. Offices, retail locations, logistic properties, and multifamily buildings are all being asked to report on their carbon use. Most are not prepared for this new task. “Fifty-nine percent of building owners say that they don’t have the data to comply with upcoming ESG regulations, and only five percent of buildings have updated their legacy systems to be ready for the kind of building automation needed for carbon reduction,” said Gary Chance, CEO of Prescriptive Data, a building operation and HVAC software provider.