Benchmarking with AUMScore
The Power of Benchmarking
Utility and energy expenses are the third largest expenditure for Multifamily property owners, and the
ability to effectively manage this expense is critical to increase net operating income (NOI), a priority for every property owner.
AUMScore is the result of a year-long energy efficiency study thought of and commissioned by AUM in conjunction with Georgia Tech University. We interviewed over 300 property owners representing over 2,400 Multifamily properties throughout the US.
SCORE stands for “Statistical Comparison of Relative Efficiency”. We believe that a benchmark should be more than just a number. A true energy efficiency benchmark considers properties of like configuration, geographic region, property type, and other like property characteristics as well as cost and usage to determine energy efficiency among its peer group.
Benchmarking with AUMScore allows you to compare a property’s energy efficiency to other similar properties in your portfolio. It also allows you to compare energy efficiency to other similar properties in a given region. Once an AUMScore is attained, an AUM Energy professional is available to advise you with steps to make your properties more energy efficient using the latest methods available.
Establishing a TRUE Energy Efficiency Benchmark
A true energy efficiency benchmark is a complex relational statistical analysis that gives you the roadmap to becoming more efficient. The key is this: After the baseline is established and the roadmap created, the baseline moves automatically as efficiency improves or more properties are added to the peer group. The initial benchmark uses multiple outputs in combination to calculate energy efficiency and identify potential improvement options. All of the variables that are not taken into consideration in a baseline measurement and an energy trending report must be considered to provide a true energy efficiency benchmark against like properties in both the initial measurement and over time.
A true energy efficiency benchmark will have the following characteristics:
Multiple outputs combined to calculate an efficiency percentage
• Frontier changes automatically as efficiency improves
• Identify potential energy efficiency improvement options
• Set energy reduction goals
• Flexibility to add more inputs and calculate more outputs as they become relevant
• Include specific property trending reports with enough variables to show effective trending
For More Information
The Official Blog of AUM contains much more information on the development and presentation of the AUM SCORE Benchmarking Tool. Visit blog.aum-inc.com to learn more about this and other energy efficiency initiatives undertaken by AUM.
Video Primer on Data Envelopment Analysis (https://www.youtube.com/watch?v=ImkqlO0kDgI)
Benchmarking with AUM (https://www.youtube.com/watch?v=_wF9dL8VSLA)
AUMScore Product Overview (https://www.youtube.com/watch?v=2GtcSUGrY0U)
Podcast Interview with Baabak Ashuri, PhD on the Technical Development of the AUMSCore Benchmarking statistical model development (http://blog.aum-inc.com/2011/12/08/georgia-tech-researcher-sheds-light-on-the-creation-of-aumscore/)
Podcast Interview with Michael Miller, CEO of AUM on the impetus to develop the AUMScore Benchmarking Tool for Multifamily (http://blog.aum-inc.com/2011/12/15/why-we-created-aumscore/)