CRE Challenge: Invest in Smart Building Technology for Commercial Real Estate
It’s a critical time for commercial real estate. Covid challenges and changing markets have caused serious upheaval in the industry, and companies are responding with innovation.
To succeed, CRE businesses must invest in smart building technology for their commercial real estate. In fact, the smart building industry is expected to boom in the next few years as CRE executives get hip to the latest in smart technology solutions.
But there is a lot going on in the smart building space, and some may wonder if the benefits are worth the investment. What smart building trends and solutions should CRE leaders invest in to lead the way and set their business apart from the competition?
Is CRE a “frozen market”?
Every CRE executive is privy to conversations in which the phrase “frozen market” is prevalent, especially regarding city centers. The pandemic dealt urban CRE a massive blow, and the critical question now is how to adapt, innovate, and stand out from the crowd going forward.
A Bloomberg article from September 2022 put it this way: “The rise of remote work will hurt older buildings, leaving landlords in the lurch. In some cases, companies are simply cutting back on space to reduce their real estate costs. Others are relocating to shiny new towers with top-of-the-line amenities to attract talent and employees who may be reluctant to leave the comforts of working from home. Left behind are older buildings outside of prime locations.”
Another big shift in the CRE space is the move from city centers to suburbs or “exurbs,” where companies can be closer to where people live. As CRE undergoes such drastic changes, real estate owners need to differentiate from the market and make the investments customers and tenants prioritize.
The future of CRE is already here!
So, how are companies adjusting to market changes and new demands? By investing in smart building technology for their commercial real estate. Connected, AI-governed buildings are increasingly the expectation, and demand for smart building technology is exploding.
According to a Fortune Business Insights report, the smart building market could reach $265.4 billion by 2028 — up from $57.3 billion in 2020.
So, what exactly is a smart building? Features of a smart building include:
Hardware and software systems to manage and integrate building operations
Data collection from smart systems, such as thermostats and water meters, to optimize utilities by monitoring and automatically adapting to peak usage
High-tech security, including video monitoring and advanced access control
State-of-the-art equipment such as microchips, actuators, and smart sensors to monitor and manage building systems — including HVAC, lighting, water, and electrical — with minimal waste
Automated essential system maintenance monitoring and alerts
The benefits of smart buildings include:
Reduced costs thanks to high efficiency
Enhanced building and tenant security
More simplicity and efficiency due to ease of access, remote control via IoT technology, mobile and flexible system access, and smart automations to identify and, in some cases, resolve issues
Supercharged data and analytics for unprecedented views into every facet of building operations
Sustainability features for a healthier environment inside and out
Of course, the greatest benefit of all is happier tenants. Tenants are looking for the type of convenience smart buildings provide, and these features and benefits set smart buildings apart in a challenging CRE market.
How does smart building technology support water management?
Water systems are among the most critical, and potentially costly, operations in any building. Every building must have a functioning water system, and any breaks or failures can be catastrophic.
So, smart buildings are implementing state-of-the-art, AI-driven, smart water management systems. These systems offer the same features and benefits of other IoT systems that contribute to smart buildings. Smart water management platforms can monitor your system in real-time and deliver predictive, preventive insights that support life safety, efficiency, sustainability, and asset preservation.
Analytics provide data to guide the management of water usage, quality, and waste in real time. Smart water systems save your facility and property managers the headache of constantly tinkering with different controls to get water management right. It shows asset and finance managers how your buildings run on a more cost-efficient scale, and ultimately, it makes your properties more profitable for owners and investors.
Smart water systems differentiate CRE properties for potential tenants and improve your brand reputation, tenant safety and productivity, and environmental sustainability.
Learn how to level up your commercial real estate with smart water management technology at aquanomix.com.