Runwise scales up efficient building energy management with Verizon IoT solutions
In cities like New York, Chicago and Boston, apartment buildings with outdated systems line nearly every residential block. And as anyone who's ever lived in one of these apartments will tell you, these outdated heating and cooling systems mean the line between comfort and sweltering is razor-thin. And because these inefficient systems drive up energy costs for the buildings' owners, it also leads to equally razor-thin profit margins.
As a former property manager, Runwise Co-founder and CEO Jeff Carleton is on a mission to give property owners more control over their buildings' energy systems. "Boilers and systems are essentially running blindly. In the middle of winter, you'd walk into a building, and it felt like a sauna because the heating system was running nonstop. Or you'd walk into an office building in the middle of summer and people had sweaters on because of the central cooling," said Carleton.
When Carleton co-founded Runwise, he saw building owners struggle to maintain comfort and control in old buildings with antiquated heating and cooling systems. Many of the boilers and chillers installed in apartment buildings across major cities have been in place for decades, built for an era of lower energy prices. In many of these older buildings, a central boiler provides heat by pushing steam through pipes and into radiators for each apartment. An outdoor thermometer tells the boiler to produce more heat when it's cold outside, and less when it's warmer.
The challenge is that the boiler cannot determine the indoor temperature of the building, let alone the specific temperature for each apartment. This setup overheats buildings in the winter. At the same time, outdated chillers repeat the cycle in the summer—blasting cool air regardless of whether units need it or residents want it. Uncomfortable tenants often open windows to regulate temperature and every time heat or cooled air escapes, so does the property owner's profit margin, due to wasted energy production.
Carleton created a new way to solve the problem. Instead of requiring owners to rip out and replace aging infrastructure, Runwise provides an intelligent building management platform that layers sensors, boiler controls and cloud-based software onto a building's existing energy infrastructure. For property managers, the result is near real-time insight into how their buildings consume energy, allowing them to optimize performance, reduce costs and keep residents comfortable.
To make this vision a reality, Runwise required near real-time IoT visibility and reliable network connectivity.
Building infrastructure poses connectivity challenges
For Runwise, the need was clear: visibility and control. "By not knowing how your systems are operating, you're just taking a chance on how much money you're going to spend per month on utilities. At the end of the day, property owners had no visibility and no control of costs," Carleton added.
Runwise wanted to give building owners the data they need to run buildings comfortably, profitably and sustainably. The company's IoT technology layers on top of the building's existing physical infrastructure to give building managers the insights they need to improve efficiency. The team designed a low-cost, wireless control system that connects sensors placed on the boiler, cooler, pipes and in apartments. These sensors collect temperature, humidity and performance data, then stream it into Runwise's cloud-based platform. This allows operators to view performance, set schedules, and adjust controls in near real-time.
As Runwise developed and refined its platform, it discovered that integrating its technology into a building's infrastructure came with connectivity challenges. Boilers and cooling systems are often located deep in basements, where wireless connectivity is unreliable. Meanwhile, wired connections are costly and take weeks to install.
"The building environment presents a lot of installation challenges. The biggest one is connectivity. HVAC systems are often in basements, tucked into dark corners surrounded by concrete and metal. It's hard to access them, and it's even harder to get any connectivity whatsoever," said Carleton.
Without a dependable way to transmit data from boilers and sensors back to the cloud, Runwise couldn't deliver the actionable insights that make its platform valuable. And without the ability to manage thousands of devices remotely, scaling nationally would be impossible.
We use the Mobile Private Network because it allows us to have a secure connection anywhere we install nationwide. Just as important, having our own private network means we don't have to touch the infrastructure or tech systems of our clients. We go in, install Runwise, connect it to Verizon, and we're online the same day.
Jeff Carleton, Co-founder and CEO, Runwise
Reliable Verizon connectivity powers Runwise smart building climate control
To solve this connectivity challenge, Runwise partnered with Verizon to integrate IoT connectivity directly into its platform. Using the Verizon Mobile Private Network, Runwise devices can reliably transmit performance data while ensuring sensitive building information remains secure.
To implement its system, a Runwise installer adds a Verizon-connected wireless control device onto an existing boiler or chiller, connects temperature sensors throughout the building, and activates the connection to Verizon's network. Each Runwise control unit comes with an embedded Verizon SIM card, allowing installers to quickly install devices and connect to Verizon's network the moment it's powered on. Runwise’s devices can be placed in boiler rooms located in remote locations, such as basements, while still accessing the connectivity they need to operate reliably.
This plug-and-play setup enables Runwise to deploy its solution in a day or less, saving building owners time and cost associated with installing a wired solution.
"We've designed an entire connectivity and hardware platform from scratch that allows buildings to get on Runwise quickly. Our ROI depends on being able to get in and out of buildings quickly. That's why we engineered our network to be fully battery powered for all temperature sensors, paired with the Verizon connectivity that ensures buildings run efficiently and stay online in near real-time," said Carleton.
The Runwise platform learns how a building responds to heating and cooling, so it can adjust system activation times to align with current and expected conditions.
"We always connect our sensors online via Verizon to our Mobile Private Network. We pair that connectivity with a wireless radio frequency temperature sensor network that gives us data on temperature, humidity, supply and return temperatures. Everything that's happening in the building is wirelessly transmitted back to a Runwise control. We then take all this data and use algorithms to automate operations to create a more comfortable and more efficient building," said Carleton.
Verizon ThingSpace IoT solution provides visibility at scale
Runwise also uses Verizon ThingSpace to simplify sensor and device management at scale. The IoT management platform gives Runwise the ability to activate, monitor and manage connectivity for thousands of IoT-enabled devices across the country through a single screen. This helped the company eliminate the need for manual oversight of individual devices while providing the visibility it needed to rapidly expand into new markets.
"ThingSpace allows us to check connectivity and troubleshoot issues before tenants or clients even know about them. It really lets us see everything, from provisioning a device to monitoring operations," said Carleton.
Dmitri Nesterenko, Runwise VP of Engineering, highlights the importance of being able to see connectivity issues through the ThingSpace platform. "Our customers rely on us to provide information up to every five minutes. Any disruption is really critical. So being able to visualize and understand what's actually happening with the connection is pretty critical for us," he said.
The Runwise team uses the ThingSpace platform to provision, activate, and monitor thousands of SIM card connections simultaneously, allowing them to maintain the uptime and connectivity their clients rely on.
"With this connectivity, the moment something happens in a building—a leak, a service disruption, a boiler or chiller going down—the building's operations team gets a real-time text, email or push notification. That allows them to be proactive and solve a problem before tenants even notice, rather than being reactive like the old way of doing things without connectivity," said Carleton.
Reliable, secure connectivity fuels data insights
The Runwise solution depends on a steady stream of data being transmitted back and forth between the building and its cloud platform. With Verizon's reliable connectivity, the platform has the data insights it needs to make decisions and adjustments automatically and without delay. For O'Neill Witter, Fleet and Field Manager at Runwise, this reliability is crucial.
"We use the Verizon network because I'm always able to get a signal in every basement or sub-basement, from Chicago and Boston to New York. That gives our clients confidence that they'll always have connectivity," he said.
In addition to reliable connectivity, Runwise relies on Verizon for the built-in security provided by Verizon's private network.
"We use the Mobile Private Network because it allows us to have a secure connection anywhere we install nationwide. It also enables us to complete cybersecurity reviews for large companies very quickly. Just as important, having our own private network means we don't have to touch the infrastructure or tech systems of our clients. We go in, install Runwise, connect it to Verizon, and we're online the same day," said Carleton.
Our customers rely on us to provide information up to every five minutes. Any disruption is really critical. So being able to visualize and understand what's actually happening with the connection is pretty critical for us.
Dmitri Nesterenko, VP of Engineering, Runwise
Runwise scales up cost savings, comfort and compliance
Since launching its platform with Verizon as its connectivity and IoT partner, Runwise has scaled from a handful of buildings in New York City to more than 10,000 buildings, for 1,000+ building owners, across North America.
"Verizon gives us peace of mind that we can go and open up new markets and know that we'll have connectivity when we need it. We went with Verizon for reliability. Working with Verizon has been fantastic. Using Verizon's tools, modems, and technologies, our team has installed nationwide, and we've never had a building in the U.S. that we couldn't connect to or deliver data for," said Carleton.
Because technicians can install the platform in less than a day, building owners incur minimal implementation costs. This allows building owners to generate an average of $1,725 profit in the first month, generating positive ROI immediately from energy savings.
The company's platform helps property managers detect and resolve issues 90% faster, which helps reduce tenant complaints by proactively addressing problems in near real-time. In addition, the company estimates that its platform has helped save building owners more than $110 million in energy costs to date.
By helping buildings quickly cut energy use, Runwise also helps property managers meet sustainability initiatives and stay in compliance with local climate regulations. For example, New York’s Local Law 97 requires buildings over 25,000 gross square feet to reduce emissions 40% by 2030 and 80% by 2050. The company estimates that it has helped building owners avoid more than $87 million in Local Law 97 fines, with the emissions it has helped reduce equaling 60,000 cars off the road.
“These laws are making their way into other cities throughout the U.S., like Boston and Washington, DC. And more major metropolises are going to start deploying laws like this,” said Michael Cook, Co-founder and Chief Growth Officer of Runwise.
"Many real estate companies have efficiency targets as part of their mission. Runwise is a real partner to these companies. We can potentially drop the energy consumption of a property by 25% or so, which can bring a building's grade up and reduce or eliminate its violations," said Cook.
To prove compliance, owners must submit an annual report detailing their building's carbon emissions for the previous year. Therefore, owners must reduce their energy usage to avoid fines and maintain compliance. Runwise is by far the most effective and cost-efficient way for most buildings to become carbon-law compliant.
Verizon is a key partner to foster these benefits. "The Verizon support team has been an invaluable resource to us. We sell the promise of near real-time control and insight, so whether it's an external antenna, hardware selection, or a modem, their team is always there to support us so we can deliver on our vision," said Carleton.
Runwise in Action: How FirstService Residential cut costs and boosted comfort
"Runwise gives us the ability to ensure that our heating plants are efficient and effective,” said Keith Werny, President, CityLine Division at FirstService Residential. “If boiler systems are operating that way, you're ultimately going to save money and give a better quality of life for residents," he said.
As one of the largest residential property management companies in North America, FirstService Residential is responsible for more than 100,000 units in New York City and 1.8 million nationwide. Its mission is to deliver exceptional service for tenants and ROI for owners. FirstService uses the Runwise platform to monitor the energy usage of more than 150 buildings in New York City, providing its property managers with the insights they need to improve energy efficiency.
With Runwise, FirstService now has unprecedented insight into its building operations. Data is collected from across its building portfolio and made accessible through a single app that lets resident managers, property managers and executives stay ahead of issues. Real-time notifications let the team know whenever there is an issue, so they can be proactive instead of waiting for a tenant to bring it to their attention.
"With analytics and information, you can actually see what's happening and act on it. You can go on your computer or your iPhone, whether you're on vacation or just curious, and take a look. You can also get notifications when something happens. That allows the team to react and address issues sooner rather than later. These solutions put you in that position," said Werny.
Werny equates using Runwise to being able to act like an asset manager, not just a property manager. His team can now look for cost-saving opportunities that were previously impossible to uncover, driving better returns. Werny recalls one property that was losing thousands of gallons of water a day in leaks that no one had detected. With Runwise, they quickly identified that the building's steam traps had failed. Once fixed, the property significantly reduced its water bill while providing a better quality of life for its residents.
"With Runwise, if your boilers or cooling towers are operating more efficiently, you save money on repair and maintenance, you save money on fuel, and you save on day-to-day operations overall," said Werny.
These insights that property managers like Werny now rely on to operate more efficiently require reliable connectivity, especially in aging buildings with remote device location. "It starts with connectivity. Without connectivity, none of this works. It is essential that the connectivity is functioning," said Werny.
It starts with connectivity. Without connectivity, none of this works. It is essential that the connectivity is functioning.
Keith Werny, President, CityLine Division at FirstService Residential
Connecting buildings for a more sustainable future
The partnership between Runwise and Verizon enables the owners of aging apartments to rethink how their buildings and communities can operate for the benefit of tenants, owners and the environment.
"It's critical for building systems to run efficiently. That reduces unnecessary waste, improves the bottom line, and makes people more comfortable. And then there's the sustainability aspect: We're trying to reduce carbon emissions from cities," Carleton said.
"If you're not actually reducing operating costs, fuel usage, and electricity, then you're just talking about it. Runwise and Verizon allow us to get into buildings, make them more efficient, and that has a real impact on sustainability."
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