Capital Improvements That Don’t Have to Break the Bank

Looking back on 2025, it’s safe to say New York’s commercial real estate market had a good year. According to the Commercial Observer, Manhattan office availability is at its lowest point since the pandemic began in 2020, with lease activity well above the 10-year average. Lower borrowing costs and growing demand paint an optimistic picture going forward.

But against this backdrop, many commercial building owners are choosing to delay major capital improvement projects. This same dynamic of strong data in the present and wariness about the future is reflected in the economy across America: The stock market may be booming and growing millions of investors’ portfolios, but homeowners aren’t spending big on renovations. And while office lease growth in New York is driven largely by Class A buildings, others continue to struggle. Some signs may be positive, but uncertainty still reigns across most sectors of the economy.

Nevertheless, experienced commercial building owners know that delays in capital improvements now can end up costing much more later when things break down. The question then becomes: How should owners undertake responsible upgrades to their facilities in unpredictable economic times? Here are some timely strategies that can help prepare for the future without breaking the bank in the present.

Optimize the building management system (BMS)

Monitoring, managing and coordinating a large building’s various mechanical and electrical systems is a significant undertaking. Many buildings nowadays utilize a BMS to help the building manager save time and increase efficiency.

But not all BMS or the systems they operate within are created equal. Factors like the amount and diversity of data a building is feeding the system, and the complexity of the tasks a BMS is capable of undertaking, will impact performance. As a simple example, a BMS can’t shut off fans when a room reaches a certain temperature if that room’s temperature isn’t being monitored.  Extrapolate this concept to hundreds of building maintenance operations, and the inefficiencies can really add up.

The latest technology utilizes artificial intelligence to produce autonomous control and do what AI currently does best: compare many different datasets to identify useful information. Autonomous control means the BMS will proactively identify and handle incremental improvements across the system. For example, Trane autonomous controls have generated up to 25 percent savings on HVAC expenses and up to 40 percent reductions in building carbon footprints in buildings that have implemented the technology.

Improve asset management techniques

It’s amazing how much a toothache or a strained back can make our whole body feel out of whack, but we know that with regular brushing and exercise these incidents are less likely to happen. Similarly, a building contains a whole ecosystem of important components that can be forgotten when they’re working, but a major pain when they break down.

Part of preventing unpredictable breakdowns in all the assets that a major building or facility utilizes is having a proper system in place for tracking their life cycle. Tools like Trane’s Nuvolo Asset and Facility Maintenance Management software simplify this multifaceted process and help building managers stay organized. From automating work order schedules to tracking parts inventories and planning regular procurement, these tools turn a reactive and unplanned part of maintenance into a systemized, proactive approach. And in this age where data is available and analyzable on an unimaginable level, improving asset management techniques can result in real savings, not to mention fewer headaches!

Develop resiliency solutions

It is undeniable that there are new challenges facing building owners stemming from climate change and increased demands on the power grid. Resilience is a building’s ability to adapt, withstand disruptions, and quickly recover from unexpected events, such as extreme weather or power outages. And beyond the benefits of keeping tenants happy when something does go wrong, resiliency solutions can help save real money.

An expert resiliency consultant will start by conducting thorough assessments using data analysis and physical facility evaluations to understand energy and water use, assess facilities vulnerabilities, and understand risk tolerance and resiliency requirements. These findings then inform comprehensive plans and solutions. Resiliency solutions that Trane has incorporated in whole or in part for major facilities have included redundancy systems, distributed energy resources, battery storage, and on-site renewable energy resources.

Each recommendation in this article stems from the same mindset that every building owner can benefit from: Proper planning and preparation helps to save money, work and stress in the long run. But these solutions need not be adopted whole cloth: Owners should figure out what works best for their building. There are plenty of reasons to think commercial real estate in New York is headed in the right direction, making now a great time to reduce risk with sensible planning and expenditures.

If you’re interested in learning more about how Trane can help implement a responsible capital improvement plan, contact us here.

This is for informational purposes only and does not constitute professional advice. Trane believes the facts and suggestions presented here to be accurate; however, final design and application decisions are your responsibility. Trane disclaims any responsibility for actions taken on the material presented.