Energy performance of basement structure of Stanley Pauley Engineering Building of the University of Manitoba is studied. A total of eighteen soil samples were collected at different locations and depths based on the geological profile of the ground. Thermal properties of the collected soil samples were obtained in the Geotechnical Engineering Lab using a KD2-Pro device by Decagon. Heat losses are predicted for the below-grade envelope by considering thermal properties of soil and building materials. For that purpose, a numerical model was created based on construction drawings using COMSOL Multiphysics software. The applied approach includes the calculation of heat loss due to heat transfer through conductive mechanism, also it considers phase change of water during freezing/thawing cycles. Different alternatives for heat preservation are suggested and compared in terms of economic effectiveness.