Smart building technology has a profound effect on many industries, such as manufacturing, as well as the commercial real estate market. Today's businesses are looking for more than an empty building that they house their equipment in. The smart building features are as much of a selling point as the location. Here are seven other ways that smart buildings are changing commercial real estate.
- Expanding optionsTechnology is constantly evolving and introducing new innovative ways to manage buildings. Building automation systems gain more functionality and allow facility managers to optimize operations. They can streamline time-consuming processes and gain more insight into what's going on. Many vendors are available in this space, creating a competitive environment that's filled with many opportunities to enhance the smart buildings, whether they're getting introduced during the construction process or retrofitted into existing buildings.
- Fully integrated systems.The introduction of Internet of Things devices makes it possible for multiple building automation systems to come together in a centralized solution. IoT networking capabilities act as the bridge between systems that don't offer native integration. Facility managers can access this data and get full visibility into building operation without checking multiple systems.
- Adapting to tenant's technology requirementsCommercial real estate developers need to appeal to potential tenants' needs when they're shopping for a new location. If the building doesn't offer the same features as other available properties in the area, the owners could fail to bring in the tenants. They invest a lot of money into maintaining the building and marketing it to new tenants so this situation could lead to a significant financial loss.
- Better optimization of building operationsThe automated systems in smart buildings allow facility managers to reduce energy expenses, create more comfortable environments and quickly address errors when they occur. The data generated by IoT sensors provide real-time information for quick reactions. They also register long-term trends that may be addressed through new technology or adapted business processes.
- Tenants paying a premium for innovative technologySmart building owners have an attractive offer on-hand for new tenants. Companies that want a strong technology infrastructure already in place for their move-in will pay more for the amenities. They often put their own additions in place, which have the potential to improve the property value further. Building owners should keep an eye on ROI numbers with this approach, however.
- Improving environmental friendlinessSmart buildings automatically handle many routine processes, such as climate control. There are fewer opportunities for human error, which makes it consistently better for the environment. No one forgets to turn down the thermostat for a long weekend or overlooks a malfunctioning HVAC unit.
- Better automation due to versatile IoT sensorsSmart buildings have many possibilities opening up to them due to IoT devices. This flexible technology can go practically anywhere within the building. Facility managers get supplementary data sources that can lead to major changes in automation, as well as the ability to better handle maintenance and repair work.
Smart buildings have transformed the commercial real estate market for building owners, facility managers, tenants and everyone else involved in the process. As the IoT market matures and new technology makes its way into commercial real estate, the digital transformation will continue.