Smart Buildings: The Future of Commercial Real Estate

How often have you seen the battle for the thermostat play out in your office? One co-worker is wrapped in several sweaters and wool hats while their neighbor is sweating profusely with their desk fan going full blast.

Soon, this temperature struggle may be a thing of the past as more commercial real estate owners are investing in smart buildings.

IoT: Internet of Things

Smart buildings use IoT, or the Internet of Things, to automate and streamline building processes including:

• Security
• Lighting
• Air Quality
• Heating
• Air Conditioning

IoT is the network of technologies that connects smart devices into one system and provides real-time metrics for better data-driven decision-making around resources, maintenance, and more.

When IoT is implemented, investors enjoy improved efficiency, lower costs, and happier tenants and workers.

By 2025, over 75% of commercial buildings are predicted to use IoT for smart building operations. By 2032, the market for smart buildings is expected to reach $247.17 billion, growing 12.3% from 2023 to 2032. 

Energy Efficiency & Lower Costs

Energy usage represents a high cost for commercial properties. With today’s hybrid work models, ensuring a property isn’t wasting resources by heating, cooling, and lighting areas no one occupies is huge. Plus, sun exposure, shade, and a building’s age can all affect the efficiency of a building’s heating, ventilation, and air conditioning systems.

Smart buildings use IoT analytics and sensors to track these patterns and then adjust so you can ensure every space is utilized efficiently and wisely to fit changes in occupancy or seasonal changes.

For instance, don’t use that conference room much? Smart buildings will let you know not to use resources in that space and to re-allocate them to spaces that are used frequently.

On average, commercial buildings consume about 30% of the world’s energy and are 40% more energy-intensive than residential buildings.

Using smart technologies can help negate that difference by up to 20% — conserving energy and reducing carbon footprints, not to mention lowering costs. It’s a win-win.

Health & Well-Being

Smart buildings are also being used to improve the health and well-being of their occupants. Monitoring air quality, filtering out pollutants, and tracking and regulating CO2 levels are just some of the ways that smart buildings are working towards creating a healthier environment, contributing to boosts in productivity and cognitive function. 

Additionally, smart buildings can utilize circadian lighting, which mimics the natural pattern of sunlight throughout the day.  Employing the right lighting has been shown to support optimal performance, improve mood, and bolster focus. 

Smart systems can also be programmed to adjust for personal preferences, including individual lighting and temperature settings. This allows your shivering neighbors to tailor the temperature for themselves and happily cohabitate with their more warm-blooded co-workers.

These simple changes can make a massive difference in the comfort and well-being of employees in the workplace or guests at a resort.

Easy Maintenance

Nearly anything can be tracked with smart technologies. This even includes monitoring how many paper towels are left in restrooms. Smart bathrooms can track and continuously assess when cleaning crews are needed based on the number of visitors who have passed through.

After a certain number have passed through, smart soap, paper towel, and toilet paper dispensers can digitally alert crews when they’re running low, saving on cleaning crew costs and ensuring no one is left stranded without a square to spare. 

This can also be applied to other smart appliances, like a refrigerator or coffee maker, to ensure everything is fully stocked for use.

On average, using these technologies can allow smart building owners to save around 15% in maintenance costs.

Security

Smart security systems in buildings, whether at a workplace, resort, or business, offer enhanced protection for both occupants and assets. Smart security features can include biometric access control, video surveillance, facial recognition, and real-time monitoring and alerts.

Smart security not only helps prevent incidents but also allows you to know if there is any unauthorized or unusual activity in real-time.

The adoption of smart building technologies is transforming how we manage and experience commercial spaces. With these advanced systems and efficiency improvements, smart buildings can see 20% increases in their property’s value.

And the advantages of smart buildings are increasingly clear — from optimizing resources and energy efficiency to increased comfort and lowered costs. And, of course, finally, the end of the thermostat battle.