The opportunity
Nine in ten small commercial buildings have nothing watching them. Traditional building systems cost too much for a strip center or a 20,000 sq ft office, so owners run blind until something breaks.
of US buildings under 50,000 sq ft have any automation system. EIA CBECS
small commercial buildings in the Houston metro. Our estimate from EIA regional data, give or take 30–40%.
for a traditional system in a building under 10,000 sq ft in Houston. Lange Mechanical
Why Houston owners buy
- Water. Freezes like Uri, hurricanes and old pipes. Average incurred loss per commercial policy in Uri was about $74,900 (TDI via Insurance Journal). With high commercial deductibles, owners pay most mid-size leaks out of pocket.
- Keeping tenants. Class B office vacancy is 28.7% (Cushman & Wakefield, Q2 2026). An AC that dies on an August Monday is a tenant who doesn't renew.
- Humidity. Empty suites with a failing AC turn humid in days. Mold is expensive and slow to fix.
What we sell
Wireless long-range sensors (LoRaWAN) with batteries that last up to five years. One gateway covers the whole building. Installation takes a day and doesn't touch the building's network or equipment controls.
Leaks
Spot sensors at water heaters, restrooms and AC drain pans. Rope sensors along pipes and mechanical rooms. Detects from 5 mm of water.
AC health
Current clamps on each unit's compressor and blower. Catches the failures that cost the most: compressor running with no airflow, units that never stop, units that won't start.
Environment
Temperature and humidity by zone. Freeze warnings, mold-risk humidity, rooms that never cool down.
The portal
- Every building an owner has, on one screen, green, yellow or red.
- Alerts by text and email, escalating if nobody acknowledges.
- Incidents assigned to maintenance and closed with a note.
- A monthly report for the owner: incidents, AC run hours, trends.
- Next: prediction. The system learns how each unit normally behaves and flags it when it starts to degrade. It needs one summer of data per unit, so we sell it as an upgrade, not on day one.
How we sell it
The sales motion is a warm introduction, a free walk-through, and a 24-month rental contract. We start with owners who have several small properties, because one yes brings a whole portfolio.
Who we go after, in order
| Segment | Why they buy | Lead with |
|---|---|---|
| Owners of several strip centers, flex buildings or rental homes | They can't visit every property; one dashboard replaces the drive | Portfolio view and the monthly report |
| Class B and C office with empty suites | Nobody is there to see a leak or a humid suite; tenants are hard to keep | Leak and humidity alerts in vacant space |
| Class C and D apartments | Old water heaters and pipes, frequent claims | Leak sensors on every water heater |
The playbook
- Warm introduction
The partner opens the door with owners and property managers they already know.
- Free building walk-through
We visit, map the water and AC risks, and leave a one-page risk map. It costs us an hour and shows the value before any price.
- Pilot pricing for the first 5–10 buildings
$149 a month on a 24-month contract, in exchange for data and a testimonial.
- Seasonal campaigns
Freeze protection in October to December. AC health in March to May, before summer.
- Allies who send and serve customers
HVAC contractors receive our alerts as service calls. A licensed electrician installs the clamps. Insurance brokers refer owners who had a claim.
Objections we'll hear
| They say | We answer |
|---|---|
| "I don't want anything on my network." | It doesn't use it. The gateway has its own cellular connection. |
| "I can buy leak sensors for $30 online." | You'd be buying a gadget. We install, configure, watch the alerts, call your contractor and send you a report. One avoided leak pays for years of service. |
| "My tenant is responsible for the AC." | Then you get proof they maintain it: run hours and failures per unit, every month. |
| "I don't want another capital project." | There isn't one. The equipment is ours. You pay monthly. |
Pricing
Price grows with the number of AC units, so a small warehouse pays little and a strip center pays its fair share. Rental model: equipment stays ours, installation is free, 24-month contract.
Protect
- Leak, temperature and humidity sensors
- Alerts and portal
- Monthly owner report
AC Health
- Everything in Protect
- Compressor and blower monitoring on each unit
- Run-hour and failure history
Predict
- Degradation alerts before failure
- Quarterly review with a technician
Available after the first summer of data.
Examples: a warehouse on Protect pays $119. An office with 2 AC units pays $179. A strip center with 8 rooftop units pays $359.
Owners who prefer to buy can pay equipment and installation up front, then half the rental price for the portal.
The numbers
Each building pays back its equipment in about a year and earns 37–49% margin over the contract. After month 24 the equipment is paid off and almost the whole fee is margin.
| Building | Investment | Monthly fee | Payback | 24-month revenue | 24-month margin |
|---|---|---|---|---|---|
| Warehouse (Protect) | $1,195 | $119 | ~13 months | $2,856 | 37% |
| Office with 2 AC units | $1,815 | $179 | ~12 months | $4,296 | 44% |
| Strip center, 8 rooftop units | $3,775 | $359 | ~11 months | $8,616 | 49% |
Investment includes hardware and estimated installation. Assumes $25 a month per building to operate (hosting, support, replacements). Installation cost will be confirmed in the pilot.
If it grows
| Buildings | Equipment capital | Monthly revenue | Annual revenue |
|---|---|---|---|
| 10 | $20,000 | $1,990 | $23,880 |
| 25 | $50,000 | $4,975 | $59,700 |
| 50 | $100,000 | $9,950 | $119,400 |
| 100 | $200,000 | $19,900 | $238,800 |
Assumes an average of $2,000 invested and $199 a month per building, before any partner split. Renting grows with capital: every new building is paid for before it earns.
Why we win
Competitors sell cheap software the owner installs alone, or expensive integration projects. Nobody sells the whole service with no upfront cost.
| Who | What they sell | What's missing |
|---|---|---|
| Local building-automation integrators | Wired systems, $30–60k for small buildings | Too expensive for this market |
| LANA IoT | Leak and temperature sensors with a monthly plan | Owner buys the hardware; no AC monitoring; no local installer |
| 75F | Wireless HVAC control with AI | A controls project, not a service; no leaks |
| Pelican, ecobee | Networked thermostats, a few dollars per device | Thermostat only; must be replaced; no leaks |
| Monnit | Generic sensors and a cloud app | Do-it-yourself tool |
- No upfront cost for the owner.
- Leaks, AC and environment in one portal and one invoice.
- A local installer in Houston, doing building and home automation since 2012.
- Fleet data: every new building makes the predictions better for all of them.
- Optional local control with Loxone, for owners who want the system to act, not just warn.
Ways to partner
Three ways in. Exact terms are something we set together.
| Option | The partner brings | The partner gets | Fits someone who |
|---|---|---|---|
| A. Sales partner | Introductions to owners and closing deals | A recurring share of every contract they bring, while the customer stays | Has the network, doesn't want to put in capital |
| B. Equipment investor | Capital for the equipment in the buildings they fund | Capital back first, then a share of those buildings' profit | Wants a return without running anything |
| C. Company partner | Sales and/or capital, ongoing | Ownership in a new company built for this | Wants to build the business long term |
Who does what
- Grizzly Tec: technology, portal, equipment, installation, technical support.
- Partner: owner relationships, sales and renewals, and capital depending on the option.
Risks, and how we handle them
| Risk | How we handle it |
|---|---|
| Clamps inside electrical panels likely need a Texas-licensed electrician | Fixed-rate alliance with a TDLR-licensed electrician; confirm the rule in writing |
| Liability if an alert doesn't arrive | Informational-service contract with a liability cap and professional insurance, reviewed by a Texas attorney |
| Capital grows with every building | Equipment investor (option B), or customers who buy |
| False alarms wear customers out | Six-month pilot measuring useful versus false alerts before scaling |
| Promising prediction too early | Sell detection from day one; prediction only after a summer of data |
Next steps
We start small and measure: a test kit this fall, a pilot with 5–10 real buildings, and a working portal before summer 2027, when prediction starts learning.
To decide at our next meeting:
- Which way to partner (A, B or C), and on what terms
- Which buildings go into the pilot
- Who answers after-hours alerts: the owner, us, or a partner contractor