The example of Waltrovka shows that there is still room for saving operating costs, even in green office buildings

The Waltrovka administrative complex in Prague 5 - Jinonice stands on the site of the former engineering company Walter Engines, which first produced motorcycles and later also cars and aircraft engines. Five modern office buildings right next to the Radlická radial include over 80,000 m² of leasable space. The individual buildings are equipped with intelligent technologies and boast internationally recognised LEED Gold and Platinum sustainability certificates. This itself is a confirmation of environmentally friendly operation, though practice shows that only effective maintenance and management on a daily basis can achieve truly significant financial savings. Jiří Beránek, an experienced property manager and head of the CBRE team responsible for the management of Waltrovka, reveals how in the last three years it has been possible to reduce total energy consumption by 20%, maintain a low level of service fees and propose further changes in accordance with the principles of ESG.

The occupancy of Waltrovka is around 92%. Its tenants include, for example, Adidas, the Pavel Kolář Center for Movement Medicine, JNJ Global Business Services, Oracle and Strabag. These are prestigious companies that are used to high quality services at reasonable costs. Among other things, the forecast of future development and the adequate setting of the strategy in the field of energy management are related to these.

"The period between 2021 and 2023 was greatly affected by the Covid-19 pandemic and the war in Ukraine. The energy market was really tight and there was also a time when suppliers did not want to conclude a single new contract. All the owners and managers of office real estate were trying to figure out how to save energy costs," commented Jiří Beránek from CBRE and added: "We faced this head on at Waltrovka. Based on our predictions, in 2021 we implemented a tranche of electricity purchases for the full three years ahead. And this strategy clearly paid off. At a time when the market was flying up and down by hundreds of percent, we guaranteed tenants a price of CZK 2,246 per MWh. For gas, we made tranches on an annual basis and the result was approx. 20% below the average market price. As energy accounts for up to 40% of the total budget, we were able to guarantee our tenants a low level of service charges that, among other things, proved to be a decisive factor for new tenants. Thanks to this, we managed to keep occupancy at a very high level."

At the same time, the property team worked to reduce energy consumption within the entire complex. Among the measures taken after consultation with the tenants, they included the adjustment of the control of the air conditioning/cooling and heating system, including the reduction of central temperatures. They reduced the need for heating with gas boilers to a minimum, and on the contrary, maximised the effort to use waste heat. As part of the low price of electricity, they also prioritised additional heating using heat pumps in air-conditioning units, along with the complete shutdown of boiler rooms. It was also a matter of course that after-cooling using induction units was turned off in the winter months. Furthermore, in coordination with the tenants, they reduced the night and weekend traffic and shortened the lighting interval of the garages and common areas. In addition, they joined Waltrovka to a pan-European movement that supports the switching off of light logos during the dead of night. As a result, there was an average decrease in energy consumption by 20%, almost 30% for gas and 10% for electricity.

In any case, CBRE plans not to rest on its laurels in the future. It is about to implement a complete ESG strategy, including the reduction of the carbon footprint. It is counting on further optimisation of operating costs as well as the realisation of investments for the purpose of the further appreciation of the entrusted real estate. “Property management is a never-ending process, but with the right setup, really great results can be achieved. And these, combined with owner satisfaction, are our driving force for the future," concluded Jiří Beránek.