How Utility Benchmarking Can Boost Your Property’s Value (and Keep You Compliant)
Benchmarking is no longer a nice-to-have; it’s becoming a baseline requirement for property owners in many U.S. cities. But beyond compliance, benchmarking can boost operational performance and asset value.
What Is Utility Benchmarking?
Utility benchmarking tracks a building’s energy and water usage over time using tools like ENERGY STAR® Portfolio Manager. It helps you compare your property’s performance to similar buildings and flag outliers.
Why It Matters for Owners and Asset Managers
1. Compliance Protection
Cities like New York, Boston, and Los Angeles now require annual benchmarking. Fines for non-compliance can reach thousands per building.
2. Increase in Property Value
Buyers and investors are placing greater weight on building performance. Energy-efficient properties with documented savings command higher prices and better cap rates.
3. Tenant Retention & Satisfaction
Energy-efficient buildings have more stable temperatures and better lighting—two of the top maintenance complaints among tenants.
4. Reduced Insurance Risk
Some insurers offer better premiums for properties that can demonstrate proactive maintenance and reduced utility risk.
5. Unlock Rebates and Incentives
Many utilities require benchmarking to unlock rebates for upgrades. No benchmarking = no access.
What Makes Benchmarking Difficult (And How to Fix It)
Manual Data Collection: Spreadsheets are time-consuming.
Inconsistent Utility Accounts: Especially for portfolios or master-metered buildings.
Lack of Staff Expertise: ENERGY STAR tools can be clunky to use.
KGL Fix: We set up and maintain your benchmarking profiles, flag anomalies, and prepare all required compliance filings.