Modern smart building technology has made huge strides, yet the vast majority of commercial buildings still operate with old-school thermostats and little else. In fact, buildings under 50,000 square feet make up 94% of the U.S. commercial building stock (about 5.5 million buildings), but only 13% of them have any kind of building automation system (BAS).Â
Let that sink inâthe âUntapped 87%â remains largely disconnected. Why? Itâs not for lack of need or potential benefit (these buildings represent half of all commercial square footage and 44% of energy use). Instead, as we concluded our white paper The Untapped 87%, the culprit is complexity: conventional BAS products and delivery methods are too complicated for small buildings.Â
Owners and operators of light commercial facilities âdonât have the time, resources, or capital to wade through this muckâ. In bigger buildings with bigger budgets, complexity can be managed by internal staff or paid consultants, but in a 20,000 ft² office or a neighborhood church? Not so much.
Whatâs needed is something in between the simplicity of a DIY smart thermostat (which you might buy at Loweâs) and the complexity of a campus-scale automation system (from your local Johnson Controls or Siemens branch).Â
But how do you actually find that âjust rightâ solution? More importantly, who is going to deliver and support it? These facilities donât have controls experts on staffâoften the janitor or an on-site generalist ends up in charge of HVAC controls by default. These folks are already stretched thin. They need an HVAC controls solution that is drop-dead simple to install and use, and a trusted partner to call when things go wrong.
In partnership with BOMA BC, we set out to write a buyerâs guide for exactly this audience: facility managers and operators of small, light-commercial buildings who want to reap the benefits of a BAS without the usual headaches. (Think Class C office buildings, retail shops, churches, community centersâthe resource-constrained âlong tailâ of the market.)Â
In preparing the guide, we spoke with industry experts on the front lines of the small-building controls space. What we heard was encouragingâinroads are being madeâbut also realistic: thereâs still no universally available easy button for this class of buildings. Success requires a new approach. The old playbook of custom-designed controls, lengthy on-site programming, and heavy service contracts just doesnât scale downâthatâs why most small buildings have zero digital controls today.Â
Instead, our experts consistently advised flipping the script: focus on choosing the right partner first, and let that partner bring the right simplified product set to the table.Â
In other words, pick the partner before the product.
Before diving into how to vet a partner, I wanted to understand whatâs new since The Untapped 87% was published. We talked to four leaders familiar with light-commercial BAS efforts, and each highlighted a piece of the puzzle.Â
Scott Muench from J2 Innovations described what they call a âmicroBMSâ designed for this light commercial market. Their approach is to automate as much of the install process as possible, driving down the cost. Charles Pelletier from Distech Controls echoed this approach, stressing that the majority of the cost for complex systems is labor.Â
Using standardized templates and setup wizards, BAS software like this can automatically create the logic, graphics, and database needed for common devices like rooftop units or VAV boxes. This plug-and-play approach avoids custom coding and speeds commissioning.
âWhen you have a known set of entities⌠you can very easily train somebody to drag and drop⌠all of a sudden everything just starts working, because the database, the graphics, and the control logic are automatically attached,â Muench said.Â
Strato Automation makes control solutions specifically for this market. Kelle Donahue shared Stratoâs tiered approach to match the system design to each siteâs needs, while still keeping the design super simple. Tier 1 = networked thermostats with a simple web interface, scheduling, and alarms. Tier 2 adds features like economizer control, optimal start/stop, and trend logs. Tier 3 approaches a full BAS, enabling remote diagnostics, programming updates, and equipment overrides. The key is avoiding over- or under-investment.
Reed Powell from MacDonald-Miller, an HVAC and controls contractor serving the Pacific Northwest, shared lessons from experimenting on this problem for over 10 years, testing technology across all three of those tiers, and striving to grow the addressable market for controls and remote monitoring by finding simpler products to resell.Â
Shifting to connected thermostats with added sensors and simple analytics allowed MacDonald-Miller to network hundreds of sites, provide centralized monitoring, and even enabled basic fault detection at low costâall integrated into their annual service contracts. Today, theyâre evaluating solutions like 75F for sites that need a bit more horsepower.Â
So, the good news is that the industry knows what the solution needs to look like. Affordable hardware exists (from connected thermostats up to stripped-down âmini BASâ controllers). Cloud software exists to tie it together. Forward-thinking contractors are packaging these pieces and testing what actually works.Â
But itâs still a fragmented landscape. Depending on where you are and who you call, you might get very different answers to a simple question like, âHow can I add controls to my building?âÂ
One vendor might propose a couple of smart stats and a $20/month cloud subscription. Another might propose a scaled-down version of their enterprise BASâstill five figures and fairly complex. Itâs easy to see why an inexperienced buyer could feel lost.
Of course, what buyers need is some sort of checklist that says: this works for your building. Letâs summarize the core requirements that any viable light-commercial BAS solution (product + service) should meet.Â
Consider this a cheat sheet distilled from our research and interviews:
To summarize, a light-commercial BAS solution should be low-cost, low-touch, and end-to-end simpleâfrom purchase to installation to daily use. It should deliver tangible benefits (energy savings, fewer complaints, less downtime) without requiring you to become a controls expert or hire one full-time.Â
Fortunately, such solutions do exist today, but the facility operator shouldnât have to figure out which exact combo of widgets and software is ideal. Thatâs not their core job. Instead, they should focus on finding someone local who specializes in delivering the right tech for this type of building.Â
So letâs flip the perspective now. If youâre an FM, operator, or janitor managing a simple building and you want to implement a BAS, the most important decision is choosing the right partner to work with.Â
This could be a local controls contractor, system integrator, or a mechanical contractor with a controls divisionâthe point is to find a company that âgets itâ when it comes to simple buildings. As Charles from Distech put it, âfind a partner that needs your business as much as you need themââsomeone for whom your project is not an afterthought but a core focus.
Who are the candidates? In general, a few categories of service providers are stepping up to serve this market:
Ultimately, itâs less about where theyâve come from and more about their commitment to this segment.Â
Buyers need to find a partner who has both the capacity and the workflows in place to deliver consistently. Bare minimum: multiple trained technicians familiar with the product theyâre proposing. If one person is your entire support system, youâre at risk if theyâre unavailable.
An experienced partner will have refined their install process for speed and cost efficiencyâusing standardization, automation, and repeatable workflows that bring typical project costs into the low- to mid-four-figure range. If a quote is far higher, or they canât explain their process, thatâs a red flag.
They should also offer remote monitoring and support, with the ability to diagnose issues online before a truck roll. That kind of proactive service, often priced in the hundreds per year, keeps operating costs down and shows theyâre committed beyond the install.
Finally, the best partners can clearly articulate the technology stack they use for small projectsâexplaining why itâs the right fit based on cost, simplicity, and proven results.Â
Solving the simple-building BAS challenge takes the right product in the hands of the right partner. The technology exists todayâeverything from connected thermostats to micro-BMS platformsâbut technology alone wonât move the needle.Â
We also need two other pieces: owners who understand the value and ask for it, and a deep bench of contractors equipped to deliver it. Without both, itâs a chicken-and-egg problem: demand stays low because the supply chain isnât ready, and the supply chain doesnât invest because the demand isnât there.
MacDonald-Miller is a good example of what it looks like when one side of that equation is in place. They see the value they can bring to small-building owners and have been experimenting for more than a decade. As Reed Powell told us, âthe technology and the products are there. Itâs just about getting that last mile.âÂ
Theyâll be ready when the market catches up. That readiness comes from pairing vetted technology with proven delivery workflowsâa combination thatâs still rare in this space.
Thatâs the path forward: more contractors with the capabilities weâve outlined, more owners asking the right questions, and technology thatâs already proven in the field. The checklists in this piece arenât theoryâtheyâre the filters that separate a scalable, sustainable solution from another short-lived pilot.Â
Our job as an industry is to get those questions into the hands of the right people, so that when the next conversation about controls comes up, the market is ready on both sides of the table. One checklist for the partner, one for the product. Put them together, and the BAS gap starts to close.
What do you think? Let us know in the comments.
Modern smart building technology has made huge strides, yet the vast majority of commercial buildings still operate with old-school thermostats and little else. In fact, buildings under 50,000 square feet make up 94% of the U.S. commercial building stock (about 5.5 million buildings), but only 13% of them have any kind of building automation system (BAS).Â
Let that sink inâthe âUntapped 87%â remains largely disconnected. Why? Itâs not for lack of need or potential benefit (these buildings represent half of all commercial square footage and 44% of energy use). Instead, as we concluded our white paper The Untapped 87%, the culprit is complexity: conventional BAS products and delivery methods are too complicated for small buildings.Â
Owners and operators of light commercial facilities âdonât have the time, resources, or capital to wade through this muckâ. In bigger buildings with bigger budgets, complexity can be managed by internal staff or paid consultants, but in a 20,000 ft² office or a neighborhood church? Not so much.
Whatâs needed is something in between the simplicity of a DIY smart thermostat (which you might buy at Loweâs) and the complexity of a campus-scale automation system (from your local Johnson Controls or Siemens branch).Â
But how do you actually find that âjust rightâ solution? More importantly, who is going to deliver and support it? These facilities donât have controls experts on staffâoften the janitor or an on-site generalist ends up in charge of HVAC controls by default. These folks are already stretched thin. They need an HVAC controls solution that is drop-dead simple to install and use, and a trusted partner to call when things go wrong.
In partnership with BOMA BC, we set out to write a buyerâs guide for exactly this audience: facility managers and operators of small, light-commercial buildings who want to reap the benefits of a BAS without the usual headaches. (Think Class C office buildings, retail shops, churches, community centersâthe resource-constrained âlong tailâ of the market.)Â
In preparing the guide, we spoke with industry experts on the front lines of the small-building controls space. What we heard was encouragingâinroads are being madeâbut also realistic: thereâs still no universally available easy button for this class of buildings. Success requires a new approach. The old playbook of custom-designed controls, lengthy on-site programming, and heavy service contracts just doesnât scale downâthatâs why most small buildings have zero digital controls today.Â
Instead, our experts consistently advised flipping the script: focus on choosing the right partner first, and let that partner bring the right simplified product set to the table.Â
In other words, pick the partner before the product.
Before diving into how to vet a partner, I wanted to understand whatâs new since The Untapped 87% was published. We talked to four leaders familiar with light-commercial BAS efforts, and each highlighted a piece of the puzzle.Â
Scott Muench from J2 Innovations described what they call a âmicroBMSâ designed for this light commercial market. Their approach is to automate as much of the install process as possible, driving down the cost. Charles Pelletier from Distech Controls echoed this approach, stressing that the majority of the cost for complex systems is labor.Â
Using standardized templates and setup wizards, BAS software like this can automatically create the logic, graphics, and database needed for common devices like rooftop units or VAV boxes. This plug-and-play approach avoids custom coding and speeds commissioning.
âWhen you have a known set of entities⌠you can very easily train somebody to drag and drop⌠all of a sudden everything just starts working, because the database, the graphics, and the control logic are automatically attached,â Muench said.Â
Strato Automation makes control solutions specifically for this market. Kelle Donahue shared Stratoâs tiered approach to match the system design to each siteâs needs, while still keeping the design super simple. Tier 1 = networked thermostats with a simple web interface, scheduling, and alarms. Tier 2 adds features like economizer control, optimal start/stop, and trend logs. Tier 3 approaches a full BAS, enabling remote diagnostics, programming updates, and equipment overrides. The key is avoiding over- or under-investment.
Reed Powell from MacDonald-Miller, an HVAC and controls contractor serving the Pacific Northwest, shared lessons from experimenting on this problem for over 10 years, testing technology across all three of those tiers, and striving to grow the addressable market for controls and remote monitoring by finding simpler products to resell.Â
Shifting to connected thermostats with added sensors and simple analytics allowed MacDonald-Miller to network hundreds of sites, provide centralized monitoring, and even enabled basic fault detection at low costâall integrated into their annual service contracts. Today, theyâre evaluating solutions like 75F for sites that need a bit more horsepower.Â
So, the good news is that the industry knows what the solution needs to look like. Affordable hardware exists (from connected thermostats up to stripped-down âmini BASâ controllers). Cloud software exists to tie it together. Forward-thinking contractors are packaging these pieces and testing what actually works.Â
But itâs still a fragmented landscape. Depending on where you are and who you call, you might get very different answers to a simple question like, âHow can I add controls to my building?âÂ
One vendor might propose a couple of smart stats and a $20/month cloud subscription. Another might propose a scaled-down version of their enterprise BASâstill five figures and fairly complex. Itâs easy to see why an inexperienced buyer could feel lost.
Of course, what buyers need is some sort of checklist that says: this works for your building. Letâs summarize the core requirements that any viable light-commercial BAS solution (product + service) should meet.Â
Consider this a cheat sheet distilled from our research and interviews:
To summarize, a light-commercial BAS solution should be low-cost, low-touch, and end-to-end simpleâfrom purchase to installation to daily use. It should deliver tangible benefits (energy savings, fewer complaints, less downtime) without requiring you to become a controls expert or hire one full-time.Â
Fortunately, such solutions do exist today, but the facility operator shouldnât have to figure out which exact combo of widgets and software is ideal. Thatâs not their core job. Instead, they should focus on finding someone local who specializes in delivering the right tech for this type of building.Â
So letâs flip the perspective now. If youâre an FM, operator, or janitor managing a simple building and you want to implement a BAS, the most important decision is choosing the right partner to work with.Â
This could be a local controls contractor, system integrator, or a mechanical contractor with a controls divisionâthe point is to find a company that âgets itâ when it comes to simple buildings. As Charles from Distech put it, âfind a partner that needs your business as much as you need themââsomeone for whom your project is not an afterthought but a core focus.
Who are the candidates? In general, a few categories of service providers are stepping up to serve this market:
Ultimately, itâs less about where theyâve come from and more about their commitment to this segment.Â
Buyers need to find a partner who has both the capacity and the workflows in place to deliver consistently. Bare minimum: multiple trained technicians familiar with the product theyâre proposing. If one person is your entire support system, youâre at risk if theyâre unavailable.
An experienced partner will have refined their install process for speed and cost efficiencyâusing standardization, automation, and repeatable workflows that bring typical project costs into the low- to mid-four-figure range. If a quote is far higher, or they canât explain their process, thatâs a red flag.
They should also offer remote monitoring and support, with the ability to diagnose issues online before a truck roll. That kind of proactive service, often priced in the hundreds per year, keeps operating costs down and shows theyâre committed beyond the install.
Finally, the best partners can clearly articulate the technology stack they use for small projectsâexplaining why itâs the right fit based on cost, simplicity, and proven results.Â
Solving the simple-building BAS challenge takes the right product in the hands of the right partner. The technology exists todayâeverything from connected thermostats to micro-BMS platformsâbut technology alone wonât move the needle.Â
We also need two other pieces: owners who understand the value and ask for it, and a deep bench of contractors equipped to deliver it. Without both, itâs a chicken-and-egg problem: demand stays low because the supply chain isnât ready, and the supply chain doesnât invest because the demand isnât there.
MacDonald-Miller is a good example of what it looks like when one side of that equation is in place. They see the value they can bring to small-building owners and have been experimenting for more than a decade. As Reed Powell told us, âthe technology and the products are there. Itâs just about getting that last mile.âÂ
Theyâll be ready when the market catches up. That readiness comes from pairing vetted technology with proven delivery workflowsâa combination thatâs still rare in this space.
Thatâs the path forward: more contractors with the capabilities weâve outlined, more owners asking the right questions, and technology thatâs already proven in the field. The checklists in this piece arenât theoryâtheyâre the filters that separate a scalable, sustainable solution from another short-lived pilot.Â
Our job as an industry is to get those questions into the hands of the right people, so that when the next conversation about controls comes up, the market is ready on both sides of the table. One checklist for the partner, one for the product. Put them together, and the BAS gap starts to close.
What do you think? Let us know in the comments.
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This is a great piece!
I agree.