Energy costs are one of the largest operational expenses for commercial properties. Commercial buildings in the US “are responsible for 75% of all electricity use — and nearly half of that is used for heating and air conditioning.”
So as energy prices rise and sustainability becomes an operational mandate, commercial property owners are investing in smart energy management tech to reduce operating costs and increase their property as a whole. Specifically, hotel and multifamily property managers, alike, are installing smart thermostats because they generate the greatest ROI and offer the fastest payback of all infrastructure upgrades.
The Cost-Cutting Power of Smart Thermostats
Depending on the property type, HVAC systems typically account for 40-70% of a commercial property energy bill. So any reduction in HVAC runtimes can significantly reduce a property’s operational overhead.
Verdant’s smart thermostats adjust temperature settings based on real-time occupancy, established usage patterns, and historical thermodynamics, reducing HVAC energy runtimes by up to 45%. And by lowering HVAC energy consumption, our VX4, ZX, and VX series smart thermostats directly improve key performance indicators such as Revenue per Available Room (RevPAR), Cost per Occupied Room (CPOR), Net Operating Income (NOI) , and many more.
ROI in as Little as 12 Months
Few energy upgrades pay for themselves as quickly as smart thermostats. Many Verdant clients report full ROI in just 12 to 18 months.
And then energy savings begin immediately upon installation, with those benefits only accumulating over time. The combination of lower energy bills and potential rebates makes an investment in smart thermostats especially attractive for both new developments and retrofits.
Commercial-Grade Technology Makes the Difference
Not all smart thermostats are created equal. Whereas consumer-grade brands (such as Nest and Ecobee) are suitable for single family properties, larger commercial properties with a centralized HVAC system require a commercial-grade smart thermostats solution.
From fluctuating occupancy patterns to managing multiple units with varying guest/tenant preferences, commercial properties have their own unique energy requirements. So commercial grade smart thermostats offer a range of features their consumer-grade counterparts lack, giving property managers more control over their property’s energy consumption.
HVAC Compatibility
Some commercial smart thermostat systems are only compatible with PTACs from the same manufacturer. So before investing in any smart thermostat solution, ensure that it is compatible with your existing HVAC infrastructure. After all, it can mean the difference between investing in a mere upgrade vs undertaking an entire system-wide overhaul.
Verdant smart thermostats, for instance, offer unmatched compatibility with HVAC systems, including PTACs, Heat Pumps, FCU’s, Split units, and more advanced units like VRFs, VRVs, and VRPs. Regardless of your commercial property’s HVAC system, Verdant’s smart thermostats are likely a good fit for your needs.
Night Occupancy Mode
Night Occupancy Mode ensures that temperature setbacks don’t disrupt sleep. Standard motion-based thermostats often misinterpret nighttime inactivity as vacancy, triggering unwanted temperature shifts that compromise comfort.
Verdant’s smart thermostats are designed to recognize sleep behavior, maintaining consistent room temperatures overnight. This feature not only enhances guest and tenant satisfaction but also prevents unnecessary HVAC cycles, supporting long-term energy savings.
Dynamic Recovery
Dynamic Recovery ensures that target temperatures are reached precisely when occupants need them — without unnecessary energy use. For instance, instead of running HVAC systems constantly, Verdant thermostats calculate when to start heating or cooling based on historical data and real-time conditions.
This feature prevents both overcooling and overheating, reducing runtime while maintaining and optimizing occupant comfort. In other words, Dynamic Recovery supports energy efficiency without compromising user experience.
Integrated occupancy sensors
While smart thermostats can be programmed around daily patterns, its occupancy sensors allow them to respond to real-time fluctuations in a space’s actual occupancy and energy needs.
Verdant’s VX and ZX occupancy sensors integrate seamlessly not only with our smart thermostats, but also many third-party lighting systems. And in buildings where unitary HVAC is not available, they also reduce heating costs by monitoring temperature and humidity sensors in each unit.
Flexible setbacks
Flexible setbacks allow property managers to customize temperature limits based on occupancy patterns, time of day, or specific building zones. This reduces HVAC runtimes by ensuring that systems aren’t overworking to maintain unnecessary temperature settings in unoccupied spaces.
With Verdant thermostats, setback parameters can be adjusted remotely across multiple units or scheduled in advance. The result is a near-perfect balance between energy efficiency and occupant comfort, not to mention reduced energy costs across the property.
Verdant Thermostat Manager
Managing HVAC system performance across multiple properties is challenging. Varying HVAC settings, different property thermodynamics, and maintenance staff making inefficient adjustments all limit the visibility and contribute to suboptimal system performance and higher energy costs.
Verdant’s Thermostat Manager provides a centralized solution, allowing property managers to monitor and control HVAC settings across all their units from a single platform.
Featuring bulk updates, customizable energy profiles, and real-time monitoring, managers can ensure optimal efficiency without requiring extensive HVAC knowledge. Verdant Thermostat Manager ultimately helps multifamily buildings reduce energy waste, lower operational costs, and enhance overall system performance by automating energy adjustments.
Maximize ROI with Energy Efficiency Rebates
Energy efficiency rebates can significantly offset the upfront cost of installing smart thermostats, accelerating the payback period. Verdant’s smart thermostats qualify for many regional and utility-sponsored rebate programs across North America.
These rebates may include direct cash incentives, bill credits, or tax deductions for energy-efficient upgrades. Verdant also supports clients through the rebate process, helping identify eligible programs, submit applications, and maximize total savings.
Boosting Asset Value and Marketability
Improved energy efficiency does more than reduce operational costs. It also enhances a commercial property’s valuation. Properties equipped with smart thermostats command higher resale value and attract energy-conscious buyers, investors, and tenants. And consistent energy savings further strengthen the financial performance of a property, making it a more attractive investment asset.
Smart thermostats also support participation in green building certifications and ESG initiatives. This, in turn, can help property managers qualify for advantageous financing products they can then reinvest in additional infrastructure upgrades.
Bottom Line: Smart Thermostats Deliver Real ROI
For commercial property managers, reducing operational costs and improving financial performance doesn’t always require a significant reinvestment in infrastructure. Installing Verdant smart thermostats is a straightforward, low-disruption upgrade that delivers measurable ROI in as little as 12 months.
By reducing HVAC runtime, minimizing energy waste, and optimizing climate control around real-time occupancy, Verdant thermostats cut utility costs without compromising guest or resident comfort.
But the benefits extend beyond energy savings. Verdant’s smart thermostats unlock eligibility for rebates, enable participation in Demand Response programs, help future-proof a property, and enhance its resale value.
Indeed, investing in Verdant smart thermostats isn’t just about cutting costs. It’s about building a more resilient, future-ready portfolio. In other words, it’s a simple upgrade with powerful returns.