It’s one of the biggest storylines of 2026: energy prices and supply chain integrity are more volatile, and less predictable, than in the past. And not only are prices unreliable, but demand is increasing after being stable for much of the 21st century: electricity consumption is expected to continue rising in 2026, led by 2.6% commercial‑sector growth from 2024 to 2026.[1] At the same time, our energy infrastructure isn’t keeping up with demand. As Emily Harris, an Energy Market Analyst at Trane Commercial notes, “Much of the nation’s energy infrastructure is aging, highly complex, and slow to adapt, making it difficult to keep pace with rising electricity needs.”[2]
This reality of higher energy prices and unstable markets is hitting home for everyone from large investors to families paying their utility bills, and it certainly impacts the commercial real estate market here in New York. So what should the pragmatic and forward-thinking building owner or developer do in the face of uncertainty that could persist for the foreseeable future? The answer lies in future-proofing buildings here and now.
Future-proofing means undertaking a set of upgrades that will help control costs and prevent waste under unstable conditions. It is a proactive strategy for your building’s energy management in an ever-changing world and a way to mitigate the risk of volatility in the commodity markets. The good news is there are better, more affordable ways to do this than ever before. Let’s look at some of the most viable options:
Heat Recovery
It is already a common enough practice for newly constructed buildings to recycle energy from output like ventilation. Increasingly, this is also an affordable upgrade option for existing buildings, and one that provides a cushion of cost control as fuel prices fluctuate. Many large commercial buildings in New York City can implement a heat recovery system simply by incorporating a heat pump to produce hot water from condenser water heat sources. Condenser water is heated when chillers or other water-cooled air-conditioning units (IT systems, supplemental cooling equipment, etc.) are providing cooling. This temperate condenser water is typically circulating at ideal temperatures to support hot water generation via commercially available heat pump chillers. Implementation complexity and feasibility of a heat recovery solution does vary based on the existing system, so a smart first step is to engage an energy consultant and HVAC provider with experience in the New York City market.
Fuel Flexibility
Large commercial buildings that have set up fuel flexibility systems have a major advantage when it comes to confronting grid instability and fluctuating energy costs. By being able to alternate between energy sources, these buildings can factor in both the relative cost of fossil fuels vs renewables and the intrinsic variability of wind and solar output vs demand to help manage cost at any given time. In order to obtain fuel flexibility, large buildings need to develop storage for various energy inputs and a smart building management system to automatically set which source should be used at any given time. But even basic systems that alternate between sources at predefined intervals can help save building owners money and may help recoup the costs of installation.
Upgrades to Building Management System
Both of the aforementioned improvements can be enhanced if your building has an effective Building Management System [BMS]. The BMS is software that monitors your HVAC system, essentially serving as the brain and nervous system that both receives information about how everything is functioning and gives out directives for various components.
An up-to-date BMS can be grafted onto any system that isn’t pneumatic, and it serves a number of future-proofing functions. Automated analysis of heat recovery cycles and energy inputs will allow the BMS to cycle in fuel and cooling sources with peak efficiency. As an added benefit, an up-to-date BMS is going to give more sophisticated feedback about how all elements of your HVAC system are performing.
Next Steps
These improvements to your building’s existing HVAC system can be undertaken together or in part to save money now and prepare for an uncertain future. Your building’s specific needs should be determined in consultation with energy consultants like Trane, and often that initial step comes with no outlay required by the building owner. Do your future self (and future buildings) a favor and learn more about how your building portfolio can benefit from implementing these technologies in the here and now.
This is for informational purposes only and does not constitute professional advice. Trane Technologies believes the facts and suggestions presented here to be accurate; however, final design and application decisions are your responsibility. Trane Technologies disclaims any responsibility for actions taken on the material presented.
[1] https://www.eia.gov/todayinenergy/detail.php?id=65264
[2] https://www.trane.com/commercial/north-america/us/en/about-us/newsroom/blogs/energy-landscape-trends.html