PJM Capacity Market Pressures and the Rising Cost of Power for Industry
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- Real Estate
Commercial Real Estate: How Centralized Energy Management Cuts Costs at Scale
Published December 22, 2025
Commercial real estate portfolios with national or multi regional footprints face a consistent challenge as they grow. Energy costs rise in direct proportion to asset count, yet visibility into what drives those costs often declines. Utility bills arrive monthly, fragmented across providers, formats, and jurisdictions, offering totals without operational context. For owners and operators managing hundreds or thousands of sites, energy becomes one of the largest controllable operating expenses that is also one of the least transparent. Centralized energy management addresses this imbalance by consolidating data across the portfolio and converting energy from a static expense into an actively managed input.
The Portfolio Scale Energy Management Challenge
Large commercial real estate portfolios operate across multiple states, utilities, and regulatory environments. Energy management responsibility is often distributed across property teams, regions, or third party vendors, resulting in inconsistent practices and limited standardization. Data collection frequently relies on manual utility bill processing, spreadsheets, and site level reporting.
This fragmented structure makes it difficult to answer fundamental questions that matter at scale. Portfolio teams struggle to identify which buildings or locations are driving peak costs, when demand charges are triggered, and where waste persists over time. Reporting requirements from investors, parent companies, or regulators add further strain, as compiling accurate energy data can take dozens of hours each quarter.
A nationwide telecommunications provider operating more than 1,000 facilities faced a challenge that closely mirrors large scale commercial real estate portfolios. Sites were spread across four states and served by a mix of major utilities and small municipal providers. Energy data was incomplete, inconsistent, and time consuming to collect, limiting visibility into total cost exposure and operational inefficiencies.
Centralized Data as the Foundation for Cost Control
The introduction of centralized energy management transformed how the portfolio was monitored and managed. Automated capture of electricity data across more than 1,000 sites created a single source of truth for energy use and cost. Manual utility bills and records from small municipal providers were integrated into the same platform, closing visibility gaps that previously excluded rural and remote locations.
With all data centralized, portfolio managers gained consistent, meter level insight across regions and asset types. Energy use could be analyzed by site, geography, and time of use, enabling a clearer understanding of demand patterns and pricing exposure. This shift eliminated reliance on static monthly bills and replaced them with continuous, structured data that could support both operational and strategic decisions.
For commercial real estate owners, this same foundation enables standardized oversight across office, retail, industrial, and mixed use assets regardless of local utility complexity.

From Visibility to Measurable Cost and Time Savings
Centralized visibility quickly translated into tangible financial and operational benefits. The telecommunications portfolio identified utility overcharges across more than 50 inactive sites that continued to accrue costs despite limited or no operational use. These issues had gone undetected under manual review processes.
Automation also reduced the administrative burden associated with energy reporting. Data collection time fell by more than 1,000 work hours annually, while reporting time declined by over 200 hours per year. Quarterly reporting cycles that previously required 40 to 60 hours were reduced to approximately one hour, while still meeting strict internal reporting standards.
The combined impact delivered more than $225,000 in operational and emissions related value, along with over $240,000 in electric cost savings measured in 2025 dollars. For large commercial real estate portfolios, similar savings scale with asset count and reporting complexity, creating recurring value year over year.
Supporting Smarter Planning and Portfolio Optimization
Beyond immediate savings, centralized energy management enabled more informed planning across the portfolio. More than 400 utility meters were tracked centrally, providing consistent performance data across sites. Over 60 on site solar systems were monitored within the same platform, supporting verification, performance tracking, and capital planning.
This level of visibility reduced dependence on site specific expertise and allowed portfolio teams to prioritize interventions based on measured performance rather than assumptions. Capital allocation decisions could be ranked according to cost impact, operational risk, and return potential. For commercial real estate owners pursuing decarbonization or electrification strategies, this data foundation supports compliance planning and long term investment roadmaps.
Conclusion
For commercial real estate portfolios operating at national scale, centralized energy management delivers structural advantages that extend well beyond utility bill consolidation. As demonstrated by a distributed telecommunications portfolio, automated data capture and visualization unlock immediate cost savings, dramatically reduce administrative effort, and restore control over energy performance across hundreds or thousands of sites. Centralized, meter level insight enables owners and operators to manage energy as a portfolio wide optimization challenge, strengthening both near term financial performance and long term strategic resilience.
