REAL ESTATE FORUM USING TECHNOLOGY TO RETHINK CORPORATE STRATEGY “BUILDING AUTOMATION” Ron Zimmer, President & CEO December 3, 2003 Toronto Convention Centre

Association Continental Automated Buildings Association “ To encourage the development, promotion, pursuit and understanding of integrated systems and automation in homes and buildings.” Mission Statement:

Definition of Intelligent Building Technologies “ The use of integrated technological building systems, communications and controls to create a building and its infrastructure which provides the owner, operator and occupant with an environment which is flexible, effective, comfortable and secure.” Source: Technology Roadmap for Intelligent Buildings (

Challenges... Financial impacts/life cycle costs. Integrated design/build process. IBS reliability. Education and changing practices. Competing technologies. Standards/protocols are not interoperable.

FACILITIES AS PROFIT CENTERS “Today, facilities are viewed as strategic resources... elevating the facility manager to the role of asset manager supporting the organization's overall business goals.... managing facilities as a true profit center.” (From an promoting a new book “Total Productive Facilities Management - By Richard Sievert)

Perspective Building owners are looking for:  Building controls to utilize the infrastructure of their existing intranets and Internet.  Facilities to be a data source to help them better run their business or organization.  Easy integration of all facility management tasks so that they can operate more efficiently. (Source: Paul Ehrlich, ) (Source: Paul Ehrlich, Trane - Global Controls & Contracting)

INTERNET STANDARDS Internet standards (Web Services) are the future. These include: –Physical - Ethernet, TCP/IP. –Human readable - HTML, JAVA, Active X. –Machine readable - XML, SOAP, SNMP, SMTP. Web pages for user interface. IT data standards for open communications between devices. These standards will dominate in the future! (Source: Paul Ehrlich, ) (Source: Paul Ehrlich, Trane - Global Controls & Contracting)

CABA XML/Web Services (oBIX) COMMITTEE CABA created the XML/Web Services (oBIX) Committee to look at using Internet standards for interoperable facility management in April, Presently there are 90 members involved from around the world! The Committee has five working groups: –Data Model, Services, Security, Network Management and Marketing. The goals are to move quickly and create non-binding guidelines - oBIX (Open Building Information Xchange).

PROPOSED ARCHITECTURE Client PC’s with Web Browser Intranet Enterprise Application Servers Network based controller Room Controller Room Controller LonTalk Controller LonTalk Controller Other XML based system Controller oBIX (Ethernet / TCP/IP/XML / HTTP) Network based controller BACnet LonTalk Controller LonTalk Other rotocols (Source: Paul Ehrlich, ) (Source: Paul Ehrlich, Trane - Global Controls & Contracting))

Benefits... Better building access. Standardized infrastructure. Higher building/rental value. Consumption costs. Occupant/tenant control. Single control point.

Electricity Usage SOURCE: Alan Whitson

Who Gets the Energy Savings... Total Savings $0.50/Sq. Ft. – – Tenant Saves $0.15/Sq. Ft. – – Landlord Saves $0.35/Sq. Ft. Building Value Increases – – $0.35 Net Energy Savings – – ÷ 7.5% Cap Rate – – $4.67 Increased Value Bottom Line - $1,657, ,000 SF 19-Story Building SOURCE: Alan Whitson

Saving Energy Pays Invest $1.25/sq. ft. in an Efficient Lighting Upgrade Saves $0.50/sq. ft. in Energy Costs per Year – –Payback Years – –ROI - 40% Creates $6.67/sq. ft. in Building Value – –ROI % SOURCE: Alan Whitson

MeasureCost Payback (Yrs.)* Building Controls $250, Convert SF 1&2 to VAV Annual Utility Savings VFD Cooling Tower $260,000 $11,000 $521,000 $58,956 $45,093 $2,603 $106, * Calculations include California energy incentives SOURCE: Kenmark Controls, Inc. TIFFANY BUILDING - SAN FRANCISCO Modeled Savings

Echelon Building 1 San Jose: 75,000 sq ft 2000 points monitored 2001 Energy Costs: Electricity: $ 296,533 Gas: $35,946 KWh: 1,740,000 (Model): 4,134,000 KWh Savings: -58% SOURCE: Kenmark Controls, Inc.

Your Information Source for Home and Building Automation E: T: F: US/Canada: CABA