A version of this article originally appeared in the CNBC Property Play newsletter with Diana Olick. Property Play highlights emerging opportunities for real estate investors—from individuals to institutional players. Subscribe to receive future issues directly in your inbox.
Rising Demand for Efficient Cooling Solutions
As record-breaking temperatures sweep across the nation this summer, commercial real estate landlords face the challenge of meeting soaring cooling demands while managing escalating energy costs. Energy efficiency has become essential to balancing comfort and expense.
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The Problem with Traditional Building Systems
Most large buildings rely on centralized temperature controls that lack precision. This often leads to uneven heating or cooling—causing discomfort such as office workers feeling too cold in summer or too hot in winter.
How Runwise is Innovating Building Climate Control
Runwise, a New York-based tech startup, developed an advanced hardware and software platform to tackle overheating and inefficient cooling in large buildings. By integrating future weather forecasts with a wireless sensor network, Runwise’s system optimizes heating and cooling operations.
Jeff Carleton, Runwise’s co-founder and CEO, explains, “We’re wasting money and increasing carbon emissions every time boilers or HVAC systems run unnecessarily, making no one comfortable.”
How the Technology Works
Runwise installs 20 to 25 wireless sensors in large buildings, such as a 100,000-square-foot property, to gather real-time temperature data across different zones. The system then adjusts boiler or cooling operations based on current conditions, user preferences, and upcoming weather patterns, improving efficiency and comfort.
Proven Results and Industry Adoption
Runwise’s technology is now deployed in over 10,000 buildings across 10 states, serving roughly 1,000 clients, including top real estate firms like Related, Equity Residential, and FirstService Residential. To date, Runwise claims to have saved clients over $100 million in energy costs.
Fueling Growth with New Funding
The startup recently secured $55 million in a Series B funding round led by Menlo Ventures, raising total funding to $79 million. Other investors include Nuveen Real Estate, Munich Re Ventures, MassMutual Ventures, and Fifth Wall.
The Future: AI-Driven Efficiency
With this new capital, Runwise plans nationwide expansion and deeper integration of artificial intelligence. “AI will become central to continuously refining our algorithms as we gather data from more buildings,” Carleton said. This approach aims to enhance energy savings while advancing sustainable building management.
Frequently Asked Questions
What problem does Runwise solve in commercial real estate?
Runwise addresses inefficiencies in heating and cooling systems by using sensors and weather data to optimize temperature control, reducing energy waste and improving comfort.
How does Runwise’s technology work?
The system installs multiple wireless temperature sensors in a building, collects real-time data, and combines it with future weather forecasts to intelligently manage heating and cooling operations.
Which types of buildings benefit most from Runwise?
Large commercial buildings with centralized HVAC systems, such as office complexes, residential towers, and public facilities, benefit greatly from Runwise’s precise temperature management.
How much energy or cost savings can building owners expect?
Runwise claims to have saved clients over $100 million collectively in energy costs by improving efficiency and reducing unnecessary heating and cooling.
Who are some of Runwise’s major customers?
Notable customers include Related, Equity Residential, FirstService Residential, MTA, Port Authority, and National Grid.
How widely is Runwise’s technology used?
Runwise’s platform is installed in over 10,000 buildings across 10 states, serving around 1,000 clients.
What recent funding has Runwise secured?
Runwise recently raised $55 million in a Series B round, bringing total funding to $79 million, with investors like Menlo Ventures, Nuveen Real Estate, and Fifth Wall.
Conclusion
Runwise is transforming commercial real estate by tackling inefficiencies in heating and cooling systems with innovative technology. As extreme temperatures become more common, their smart sensor network and weather-driven controls offer landlords a powerful tool to reduce energy costs, improve tenant comfort, and advance sustainability goals.