From Gas Lamps to Warmth on Demand: The Evolution of Heating in CRE

“Go to where the puck is going, not where it has been.” - Wayne Gretzky

Innovation is often met with skepticism in commercial real estate until it becomes indispensable. Imagine when gas lights first flickered to life, transforming dark streets into beacons of possibility. It took brave building owners to embrace this new utility, paving the way for modern, illuminated cities. Now, fast-forward to today: What new ideas are we hesitant to embrace that could shape the future of our buildings?

In this brief exploration, I’ll illuminate the path forward and encourage you to “go where the puck is going.” By understanding the evolution of traditional utilities, we can better appreciate how to position property technology as an essential part of daily operations. Managing your property tech is crucial for smooth operations, and having a standardized infrastructure is vital for delighting your occupants. Last week, we discussed water utilities; this week, we dive into the rise of gas as a utility and its impact on commercial buildings.

Keeping property tech connected and protected is key, whether you focus on smart building security, streamlined riser management, or other essential technologies.

From Lighting the Way to Powering Progress

The journey began in 1792 when William Murdoch first used coal gas to illuminate his home in Redruth, England. This early innovation sparked the growth of gas utilities, enabling cities like London and Baltimore to light streets and buildings by the 1820s and 1830s. The result? Safer, more inviting urban spaces that extended working and social hours—essentially laying the groundwork for the round-the-clock economy we know today.

But gas didn’t stop at lighting. It evolved into a critical heating source for commercial buildings, paving the way for innovations like steam heating systems in the 19th century. By the 1880s, steam systems were mainstream in cities like New York, turning frigid offices and industrial spaces into more comfortable, productive environments. This development was not just a win for comfort; it had an economic ripple effect that was felt globally.

The Courage to Innovate and Its Economic Impact

Gas lighting and heating once seemed risky, yet they laid the groundwork for modern CRE, making cities safer and more vibrant. By the late 19th century, steam heating systems turned cold, drafty buildings into warm, productive spaces, fundamentally changing how businesses operated.

Yet, those who embraced gas as a utility laid the foundation for further advancements to propel commercial real estate and economic growth.

The adoption of gas utilities spurred local innovation, fueled industrial growth, and expanded urban areas, setting the stage for today's global economy. Without the willingness of building owners to embrace this change, many advancements—like central heating, safer streets, and longer business hours—might not have emerged.

Although precise GDP data from the late 1700s is unavailable, it's evident that gas-powered industries played a key role in economic development. Innovations in building designs and heating systems fostered a favorable environment for commerce, boosting global economic activity.

What is a utility?

Understanding why gas became a utility can guide our priorities as we evaluate today’s essential services inside our buildings. For those managing commercial properties, it’s important to ask: which technologies in your building truly meet these criteria?

• Essential for Daily Operations: Consider the systems that your tenants can’t live without—the ones that keep your building running smoothly and ensure comfort for everyone inside.
• Standardized Infrastructure: Reliable and scalable systems make technology worth the investment. Having the right infrastructure ensures that your property meets today’s demands and is ready for tomorrow’s tenant needs.
• Regulated for Public Good: Like traditional utilities, new technologies should offer consistency and safety, often backed by standards or consistent oversight to protect everyone involved.

Gas checked all these boxes when it proved its worth in lighting, heating, and powering commercial buildings, turning skeptics into believers. Every major utility has traveled the journey from doubt to acceptance. It’s a powerful reminder that true progress in building operations starts with bold choices. So, as you think about your building’s future, which modern technologies could be the next indispensable utility?

What Gas Utilities Enabled

Adopting gas utilities wasn’t just about convenience—it set the stage for significant advancements that reshaped how we build and operate commercial spaces. Here’s how gas utilities paved the way for other innovations:

• Central Heating Systems: Gas-powered steam heating systems revolutionized comfort, leading to more advanced HVAC solutions. This shift didn’t just make winters bearable; it elevated tenant satisfaction and opened the door to larger, more complex structures that could cater to modern business needs.
• Urban Expansion: Gas lighting and heating created well-lit, safer environments that allowed the city to thrive longer. This change encouraged city growth and supported extended business operations, fueling economic and social development.
• Industrial Efficiency: Reliable gas utilities enabled factories to run more consistently and safely, driving the rise of mass production. This leap in industrial capability translated to increased output and broader business opportunities.

These innovations weren’t just milestones; they were game changers that redefined expectations for commercial real estate. As we look at the rapid changes in building technology today, what innovations are we enabling that could reshape the future? Our current infrastructure choices could be the foundation for future growth and possibilities.

Lessons for Today

The story of gas utilities reminds us that bold choices build the future. What will our generation’s legacy be in the era of smart buildings and digital infrastructure? How can we apply lessons from history to meet today’s challenges head-on? For today’s CRE leaders, this isn’t just a theoretical exercise—it’s the reality of navigating complex decisions that will define our industry’s next chapter. The bold decisions past building owners and operators made didn’t just improve their properties—they set a precedent for global economic growth and innovation.

As we continue this series, we’ll explore how these utility attributes apply to the digital age and how modern building technology can be seen through the same lens. Understanding the roots of utilities helps us see that the future of building management lies in embracing what was once considered risky and is now essential.

Louis 'Jed' Usich III Emmanuel Daniel Jim Young Howard Berger Lachlan MacQuarrie Z. John Manolopoulos Darrell Smith Trent P. Morano Greg Hoogerland Lee Simms Sunny Dublick Andy Schonberger Tesh Patel Seema Tyagi Art McCann Rick Huijbregts Jacob Nicosia Bob Voss Brian Oswald Lawrence A. Melton Curt Radkin Lalit Agarwal Dean Stanberry, SFP, CFM Grant Murchison Gil Christopher Gerry Hamilton Kelsey Helveston Jeffrey Moerdler John Petze Matthew Good Neil Gifford Randy C. Norton Ana Rawson Stacey Shepard, PMP Ari R. Victor Settino Eric J Larsen