The following is an excerpt from the book, "Data Juice: 101 Real-World Stories of How Organizations Are Squeezing Value From Available Data Assets."
In today's world, energy efficiency and cost savings are crucial factors for businesses to consider. The real estate industry is no exception and companies are exploring various ways to reduce energy consumption and increase energy efficiency. Millennium Partners, a leading mixed-use development company, is one such company that is using predictive analytics to achieve these goals. The company owns and operates a 10-story office building in Miami, and with the help of South Florida Controls, it was able to retrofit the building's HVAC system for better control and energy efficiency.
South Florida Controls used CopperTree Analytics' CopperCube and Kaizen to extract current and historical trend logs from the building's automation system. These tools enabled them to view energy trends and predict the potential return on investment from the renovation project. The analysis showed that the project would not only pay for itself through energy cost savings but also generate a healthy return on investment. After the implementation of the retrofit, the building saw a 64% reduction in its electrical energy consumption, saving nearly $60,000 per year in electricity costs.
This use case highlights the benefits of using predictive analytics in the real estate industry. Predictive analytics helps companies make informed decisions by providing data-driven insights into energy consumption and cost savings. However, it is important to consider weather data and mean time between failure (MTBF) data from the original manufacturer of machines when using predictive analytics to prevent inaccurate maintenance predictions.
