Facilities managers are always on the hunt for ways to increase Net Operating Income (NOI), from adding revenue-driving amenities, increasing rates, and decreasing operating expenses. All too frequently, they focus on increasing revenue, which can lead to dissatisfied tenants who may begin looking for alternative locations. However, by finding opportunities to reduce operating costs, you can increase your building value, retain clients, and improve your NOI.
The answer lies not in making cuts to maintenance budgets or staff, but in gaining deeper insight into how your facility equipment is working and how to best allocate your team members. Predictive analytics—and by extension, predictive maintenance—allow you to do more with much less money, often reducing facility maintenance costs by as much as 40%.
What Are Predictive Analytics?
Predictive analytics uses continuous monitoring to maximize the time systems are up and running by identifying potential problems before they happen. As a result, facility managers can remedy the situation and perform repairs before problems lead to extended downtime, unhappy tenants, and costly overtime repair labor.
Better yet, facilities that employ predictive analytics experience fewer catastrophic failures by performing necessary maintenance ahead of time, which also prolongs the life and value of essential equipment, and allows better budgeting for large-scale, expensive equipment replacements.
Moreover, although upgrading facility systems can yield greater efficiency (and save on operational costs), it’s not always necessary before implementing continuous monitoring or predictive analytics. Retrofits for older equipment are often available, which means that nearly any building can improve NOI and energy use.
How Do Predictive Analytics Work?
Although we’ve had access to real-time monitoring for a few decades, until recently, it merely gave facility managers immediate notification of problems. Now, with more data points available for analysis, it’s possible to identify when problems are brewing by seeing which equipment is running optimally— and what isn’t— and schedule preventative maintenance to head off any issues.
By utilizing technology to get a real-time overview of systems and equipment, facilities can optimize maintenance time and labor, improve reliability, and decrease energy consumption.
As a result, facilities can save as much as 40% on maintenance costs, decrease energy use by 30%, and raise NOI and building asset value, all while improving tenant relationships and not increasing rent or finding new ways to generate revenue.
Ready to find out how we can help? Contact Cornet today to learn more about our continuous monitoring and predictive analytics services for facilities.