IREM president’s message: The energy squeeze on property managers

It comes as no surprise to those in the real estate industry that utility expenses are rising faster than rents in many areas of New England – in particular Boston – creating a growing operational squeeze for commercial and multi-family property owners and managers.

Higher energy prices, resulting in large part by global conflicts, are pushing up the cost of heating, electricity, and fuel. At the same time, tariffs have raised the price of materials needed to maintain energy infrastructure, driving utility companies to pass on increased costs to customers. 

These pressures are landing with particular force in New England where high baseline energy costs, longer heating seasons, aging building stock, and tightened regulatory requirements converge. Annual budgets are already hard enough to forecast, let alone at a time when utility volatility shows no sign of stabilizing. 

So, how can property managers and owners soften the blow of rising utility costs? Invest in energy efficiency; even modest upgrades such as LED lighting, smart thermostats, and low-flow fixtures contribute to reduced consumption. Leverage building automation systems to adjust temperatures based on occupancy and turn off lights automatically. Schedule a Mass Save energy assessment for access to rebates and other energy-efficient incentives. 

Yes, these measures are all well and good, but they, too, come as no surprise to commercial and multi-residential managers. We need to look at the broader picture, one that places policymakers front and center. Here is where organizations, like IREM, can play a powerful role in advocating for policies that help property owners and managers cope with escalating utility costs.

IREM members use their voice to educate policymakers on how regulations, utility costs, and housing policies affect building operations. We gather real-world data from our members and collaborate with industry partners to promote practical, cost-effective policies. We meet with local, state, and federal legislators to discuss issues important to the real estate management industry. We provide expert testimony in an effort to help shape the legislation and incentive programs that support responsible property management, protect asset performance, and maintain healthy and efficient buildings. 

We may not have all the answers to the energy watershed but we can lead with practical solutions and strong advocacy to help property managers navigate what comes next. 

Yoany Vargas is a senior regional property manager at Housing Management Resources, Inc. and the 2026 president of IREM Boston Metropolitan Chapter No. 4.