In the third session of our Lunch & Learn webinar series from February 2024, hosted by KMC Building Geniuses, we delved into the critical aspects of IoT sensors and their role in enhancing indoor air quality and building management. The session featured industry experts Clifford Milligan from KMC, Professor Mark Hernandez, and Matt Rader. This informative discussion aimed to provide insights into IoT technologies, air quality management, and innovative financial strategies such as cost segregation.

Mark Hernandez

Meeting the Experts

Our distinguished panelists brought a wealth of knowledge to this session. Clifford Milligan, Vice President of Sales at KMC, shared his technical expertise in HVAC and building automation. Professor Mark Hernandez from the environmental engineering sector provided an academic perspective on air quality as an expert on microbial air pollution, while Matt Rader from BBG Real Estate Services offered insights into cost segregation and its financial impact.

Understanding IoT in Building Management

The session opened with Clifford Milligan explaining the different types of sensors crucial for today’s built-environments. “We always have temperature and humidity sensors connected to the BAS,” Clifford noted, highlighting CO2 sensors as commonly installed tools that help improve indoor air quality but what sensors are installed truly depends on the space and what it is used for.

Which sensors have the most impact on indoor comfort?

Professor Hernandez emphasized that sensors are becoming “better, faster, and cheaper.” The impact these sensors can have on comfort and cognitive performance is high. “CO2 levels more recently have been linked to cognitive acuity. We don’t like stuffy air,” he stated, underscoring the human health benefits of managing indoor air quality effectively. When CO2 gets high, we feel dull and uncomfortable, which affects our work. We can use the data from appropriate sensors to find out what is in the air and address any problems. Comfort is essential to cognitive performance, he said, especially with younger people who are more sensitive to what is in the air.

Matt Rader

Cost Segregation for Financial Efficiency

Matt Rader discussed the concept of cost segregation as a financial strategy to maximize tax benefits. “Cost segregation is accelerated depreciation,” he explained. As soon as you buy a building, it starts to depreciate; however, there many nuances in building improvements, such as front-end loading the depreciation for tax purposes. By strategically applying tax codes, building owners can significantly improve their financial outcomes. In order to take advantage of these benefits, many companies choose to implement a Cost-Segregation Study through a trusted provider.

What is the typical ROI on a Cost-Seg Study?

The average ROI on a Cost-Seg Study, according to Matt, 35-1, although he’s seen as high as 1100-1. These studies pay for themselves, he shared. Clifford reiterated the importance of incorporating cost segregation in building management discussions. “You can add the cost segregation back into that formula to get a better financial outcome for the customer,” he said, showcasing the crucial intersection of technology and finance. It should be noted that cost segregation only applies to commercial buildings, not public.

Clifford Milligan

Who are the early adopters and thought leaders?

 Hernandez shared that the parents of young children are important here within the public school system. Public schools are compensated per child per day, so when a child is home sick from a respiratory illness, the school loses money. The spreading of respiratory illness can be slowed when the air is properly treated in the schools and transportation hubs where children have to be. All of this affects ROI. Sick days are expensive.

Challenges and Innovations in Sensor Usage

 Mechanical equipment does deteriorate and affect quality and energy usage; this is why having newer, energy and cost-efficient sensors is so important.

Another challenge is that although buildings may be built according to industry standards, they may not be operated that way. People generally tend to operate a building to save money, not to adhere to standards.

Hernandez pointed out that “you can’t manage what you don’t measure…You wouldn’t drive your car without a dashboard, but we are ‘driving’ our buildings without dashboards” when we don’t pay attention to these details.  Information is power, he stated. Appropriate sensors are less than the cost of a textbook per day and yet can provide incredible ROI.

Professor Hernandez emphasized the necessity of good quality sensors: “A good quality sensor is worth its weight. They have to be thoughtfully placed, usually near a return air duct.”

Clifford highlighted operational considerations. “I’m a proponent of multiple CO2 sensors because the CO2 sensor is a proxy of where that sensor is located,” he mentioned, pointing out how sensor placement and calibration are critical for maintaining air quality.

Ari Reubin

Looking Ahead

As we wrapped up, each panelist provided their vision of “hitting it out of the ballpark” in the context of indoor environmental quality solutions. The consensus was clear: effective management requires comprehensive sensor networks, active monitoring, and a multidisciplinary approach, combining technology, health, and finance.

The discussion closed with anticipation for future developments and studies, including ongoing research supported by CDC funding.

Conclusion

This Lunch & Learn session illuminated the promising capabilities of IoT sensors in managing indoor air quality and optimizing building performance. By integrating these technologies with financial strategies like cost segregation, stakeholders can enhance both the operational efficiency and health outcomes in urban environments.

Professor Mark Hernandez: https://www.colorado.edu/even/faculty/mark-hernandez.

Matt Rader: (4) Matt Rader | LinkedIn

Clifford Milligan: (4) Clifford Milligan | LinkedIn

Ari Reubin: (4) Ari Reubin | LinkedIn