Luxury Living Complicates Annual Budget
Mixed-use tower manages complex commercial and residential rates with automated budgeting solution from Gridium
388 Market is an exceptional 26-story mixed-use red granite tower that rises from a triangular base on Market Street in downtown San Francisco. Inside the building is market leading Class-A offices, street level retail space, and seven stories of luxury living apartments on the top floors.
|Industry||Commercial Real Estate|
|Property Details||26-story mixed use tower:
|Budget Challenges||After high variance year and changes in occupancy, increased desire to tighten budget forecasts and clarify range of outcomes across both commercial and residential meters|
|Solution||Gridium Billcast for annual budget preparation|
Property manager Jacqui Robinson has complex electric budgets: just two meters from Pacific Gas and Electric (PG&E) serve the tower, one for the apartments and one for the commercial space. The number of office tenants has been increasing, and the property teams effort’s in energy management had them transferring out of a discount tariff, increasing per-unit energy costs. Residential usage was also changing, as were the baseline levels for the residential tariff.
Gridium’s Billcast was deployed to create an annual budget for 388 Market. Using the building’s own login credentials to PG&E, the Gridium software retrieved multiple years of billing and interval data (over 100,000 data points!) and combined them with hourly weather data to create a statistical model of each meter.
This statistical model is used to cast forward energy use predictions under a variety of weather conditions (high, medium, and low). Because the model automatically understands changes in occupancy, the result is a well-informed budget that takes into account weather, building operating hours, calendar effects, and holidays into the usage forecasts.
Each meter, including the commercial meter, was configured in the Gridium utility rate engine, creating an accurate forecast of just how much that usage would cost in the years ahead.
“My team runs a multi-use property, and the complex commercial and residential rate changes at PG&E were driving my budget off the rails. Gridium’s solution was rapid, hassle-free and allowed my team to more confidently forecast the year ahead. Gridium’s tool has proven quite useful.”