Building Blocks: The million dollar building heating problem

The hidden cost of outdated technology In a city where buildings account for 60% of carbon emissions, most NYC properties are still operating on technology from the 1960s and 70s. The impact? Buildings frequently overheat in winter (cue open windows in February), waste up to 30% of their energy costs, and struggle to maintain consistent temperatures - all while facing stricter environmental regulations like Local Law 97. We sat down with Lee Hoffman, the CEO and cofounder of Runwise, a company leading the way in smart building controls.

How it all started

As a technology veteran on his sixth startup, Lee's journey into building technology began when his co-founder, who managed 150 multifamily buildings in NYC, noticed dramatic differences in energy usage between similar buildings - sometimes up to 90% variation per square foot.

Understanding the problem

"If you can't measure it, you can't fix it," Lee notes. Most buildings rely on decades-old control systems that lack basic features we take for granted in modern technology. Traditional building systems use outdated thermostats that act essentially as timers, with no way to measure actual conditions inside apartments. When residents complain about being cold, building managers often respond by increasing overall heat output - leading to some apartments becoming overheated while others remain cold, and significant energy waste.

The modern solution

Smart building control systems solve this through:

• Real-time temperature monitoring throughout the building
• Smart sensors that detect actual conditions in apartments
• Automated adjustments that optimize for both comfort and efficiency
• Remote monitoring and control capabilities
• Transparent tracking of energy usage and savings

What boards need to know about implementation

The process:

1. Initial building assessment to understand current systems and potential savings
2. Installation of sensors and control systems (typically minimal disruption to residents)
3. System calibration and optimization period
4. Staff training and handover
5. Ongoing monitoring and adjustments

Key questions to ask when evaluating solutions

• What is the expected energy savings and payback period?
• How will the system help with Local Law 97 compliance?
• What is the implementation timeline and impact on residents?
• How is success measured and verified?
• What training is provided for building staff?
• What ongoing support is available?
• How does the system handle issues like sensor failures or connectivity problems?

Proven results across NYC Looking toward the future, Lee sees cities as potentially the most sustainable places to live, but only if we can make their buildings more efficient. Results demonstrate the potential:

• Average energy reduction of 30%
• Improved temperature consistency throughout buildings
• Reduced resident complaints about heating and cooling
• Early detection of system issues before they become costly repairs
• Real-time monitoring and control of building systems
• Significant progress toward Local Law 97 compliance requirements

The bottom line

For boards facing rising costs and new regulations, smart building technology offers a practical path to reduced operating costs and improved resident satisfaction. As Lee notes, with labor, insurance, and tax costs all increasing while revenue remains static, energy usage remains one of the few costs boards can effectively control. Through intelligent control systems, buildings are not only reducing operating costs but also increasing property values and creating more sustainable communities.