by Lachlan MacQuarrie, VP of Customer Success, Intelligent Buildings
In real estate, cost savings usually show up in budgets and spreadsheets. However, in practice, the real opportunities and risks sit in how buildings are run day to day. Sometimes it is about cutting expenses outright. Other times, it is about avoiding future costs that never appear on paper until something goes wrong: a piece of equipment fails early, a tenant walks, a cyber incident hits, or an acquisition comes with hidden risks.
Over my career, running national programs at Oxford Properties Group, leading property management at Epic Investment Services, and now working with customers through Intelligent Buildings, LLC (IB), I have seen how owners and operators can capture these savings. The common thread is aligning strategy, digital infrastructure, and execution.
This article is about: the big levers of cost savings and cost avoidance in commercial real estate (CRE), and how to approach them in a way that sticks.
Operational Efficiency Through Digital Infrastructure
Most properties lack the expertise to run at peak efficiency. Ideally, every building would be continuously commissioned, with operators who can analyze data, sequence systems properly, and minimize peaks. But most teams are overworked or underskilled.
That is where guidance matters, much like coaching in sports. At Oxford, we deployed Switch Automation, a sophisticated fault detection and diagnostics (FDD) platform sourced with IB’s input.
The technology was strong, but we learned quickly that embedding a full-time staff member from the platform team was what made the difference. It was not the data that saved us money; it was turning analysis into real action at the property level.
Cybersecurity and Insurance Risk
At Epic, our in-house digital manager flagged vulnerabilities in certain CCTV systems, cameras that could have opened a path into other building systems. We leaned heavily on firewalls and single-factor authentication but did not yet have a true zero-trust model. In today’s world, that would not be acceptable.
At the same time, insurers were starting to push beyond corporate IT coverage and ask about practices at the property level—the level where risks touch occupants and visitors.
That is the gap most organizations struggle with: corporate IT teams are built to protect enterprise networks, but they rarely extend to the building systems themselves. Property teams are often left without the right support, even as their systems become more connected and exposed.
Owners who close that gap, treating cybersecurity as both an IT and operational issue, will be rewarded with lower premiums and fewer incidents. Cyber is no longer abstract; it is a direct cost line, where proactive teams can save real money.
Energy, Sustainability, and Asset Longevity
Leading a sustainability team taught me that certifications only mattered when they focused on performance. Policies looked nice on paper, but did not lower energy bills or reduce reliance on fossil fuels. BOMA Best stood out to me because it spoke the language of operators and guided teams toward process improvements they could implement.
FDD was one tool to find savings, but real sustainability meant translating features into benefits operators could act on.
That is why I believe so strongly in IB’s IntelliNet Optimize service. It is not just analytics—it is a managed service that continuously tunes systems, extends asset life, and ensures results appear in the operating budget.
Just as importantly, this service is structured as recoverable costs, meaning owners can improve building performance without taking a direct hit to NOI. It is a model built for CRE realities, where every investment must tie back to value.
Procurement, Strategy, and Alignment
Some contracts work fine with prescriptive detail: guards required, scope of water testing, and so on. But the best procurement outcomes I have seen came from deeper vendor relationships, where outcomes and capabilities framed the conversation. When contractors understood our goals and applied their expertise, the results were more cost-effective and higher quality.
Today, procurement is evolving quickly. Networks converge, duplication is reduced, and data is more open. Costs are not falling on their own, but they can be controlled with the right strategic planning. At IB, we often help clients think two or three moves ahead. It is the difference between playing chess and playing checkers.
Tenant Engagement and Customer Service
At Oxford, I led an RFP for a tenant engagement app. We walked away. The products at the time did not deliver against our goals. That decision avoided wasted spend, a reminder that buying technology without solving a real problem is risky.
Later, I did launch a tenant app. The lesson was clear: adoption was as much about change management within the property team as it was about the technology. The asset was sold during launch, and without a focused team, the app could not gain traction.
Tenant apps are powerful tools. They can connect owners directly with customers, generate useful insights, and deliver meaningful services through devices tenants already carry. But they are also high-effort. The savings only come when the right platform is matched to real customer needs and when teams are supported to change how they work.
The Human Factor: Empowering Staff
Technology adoption in CRE has been paradoxical. It was painfully slow for decades, then exploded as Proptech gained momentum. COVID slowed things down again, while also creating new demands: safety, flexibility, digital services, better reporting, and higher sustainability.
It is a perfect storm. Property teams are asked to do it all, better, faster, and cheaper, while still delivering superior tenant experiences. Holy cow, the pressure.
In board work, I have leaned on the “three horizons” model: focus on immediate needs, invest in mid-term exploration, and keep an eye on long-term possibilities.
At IB, I have seen how subject matter experts (SMEs) with timely solutions can lighten the load. Making life simpler for operations staff is not a nice-to-have. It is essential for cost avoidance. Teams that do not burn out deliver better results and stick around.
Capital Planning and Acquisition Insight
Early in my career, buying suburban strip centres along the U.S. East Coast, I learned quickly that failing to anticipate future costs could sink investor returns. Sometimes, the lesson came the hard way, with reputational as well as financial impact.
Every building carries layers of generational technology. Understanding how those systems function, or do not, is essential to knowing true operating costs.
The real skill a building needs to be in the future. Economic pressure, sustainability targets, and cyber risks are reshaping what “operationally ready” really means.
At IB, we have recently worked with acquisition teams to surface these issues in due diligence, highlighting current risks and how prepared (or unprepared) an asset is for future demands. That insight protects ROI, ROE, and cash flows.
Conclusion: Smarter Costs, Stronger Outcomes
Across Oxford, Epic, and now IB, I have seen cost savings and cost avoidance from every angle. The lesson is consistent: it is not about trimming budgets around the edges. It is about aligning strategy, digital infrastructure, and execution so savings are real and sustainable.
Digital platforms, cybersecurity, energy optimization, procurement strategy, tenant engagement, and capital planning offer powerful levers. But none of them work in isolation. They need translation into actions operators can take, supported by people who understand both the technology and the realities of running buildings.
Intelligent Buildings focuses on this space, helping owners and operators navigate complexity, avoid costly missteps, and deliver better results. We bring strategy but also the deep operating experience needed to execute it.
For property teams, that means a chance to be the hero: delivering savings, improving resilience, and building smarter assets for the future.