CRE leaders find new value in buildings, uncover ways to enhance tenant experience with IoT tech.
The value of using the Internet of Things (IoT) in building management for corporate real estate (CRE) providers is undisputed. In a recent Navigant Research report, the value of the IoT in building management among CRE firms maximizes profits during leasing and purchasing, optimizes the ongoing management processes, including repairs and maintenance, increases the level of technology and data analytics used to manage the building, reduces the building’s reliance on energy resources and increases customer satisfaction. While all these benefits encourage CRE adoption of IoT-based systems in building management, the benefits to customer satisfaction may be the most important.
The IoT in Building Management Increases Marketability of Properties by CRE Firms
Using the IoT to manage a building’s systems can directly increase its marketability. As explained by the Deloitte University Press, one of the challenges overcome by using IoT-based technology is the difficulty in leveraging building data and system interoperability. Meanwhile, tenants want a CRE firm using technology and IoT-based systems to enhance and maintain strong cybersecurity and data privacy measures, explains the Wall Street Journal.
Today’s application of the IoT in building management uses both machine learning and analytics to isolate vulnerabilities and proactively manage the building. As a result, bottlenecks, like those in the following graphic, can be effectively mitigated, making the building more attractive to prospective tenants:
Value to CRE
|Efficiency||Aggregate||Technology integration and interoperability|
|Differentiation||Analyze||Ability to leverage the data created by IoT-enabled buildings|
|New revenue||Act||Visualize and display data to customers|
|Cybersecurity & data privacy|
Sensor-Generated Data Can Help Tenants Find Ways to Connect Better With Their Customers
Another reason for using the IoT in building management is its ability to provide additional information to tenants about their customers’ experiences. For CRE firms providing retail spaces, this could translate into big savings and better profitability for retailers. As a result, tenants are more likely to renew their leases and have a satisfactory experience. Furthermore, the use of the IoT can increase the convenience and comfort of both tenants and their customers.
For example, the IoT allows tenants to control environment settings within CRE-defined ranges. This eliminates the costs associated with tenants keeping temperatures set inappropriately, like setting the thermostat at 50F when no one will be in the building. Meanwhile, tenants can adjust their settings remotely and have a better view of their current energy costs.
Obviously, CRE firms that include the cost of electricity and utilities in monthly lease payment may be more inclined to manage energy use by tenants. However, CRE firms that require tenants to pay for utilities can leverage this part of the IoT by giving tenants the ability to control their own energy usage rates. Ultimately, a tenant with a greater perception of control is more likely to continue leasing a space.
Sustainability Is In! And, Tenants Want to Be Seen Using Sustainable Technologies
A guiding principle in tenants looking for CRE is the ability to do more with less. That concept is true for both sustainable buildings and smart buildings, reports Tom Caroll of the International Business Times. As a result, the new generation of CRE tenants are poised to disrupt the traditional way CRE firms have handled tenant experiences.
Deploy the IoT in Building Management Across Your CRE Firm Now.
Take a look at the following graphic of how the IoT can be deployed by a CRE firm.
The various components can make it difficult to understand, and deployment can serve as another disruption to standard CRE processes. However, you can take advantage of tenant experience-boosting benefits of the IoT in building management by partnering with an accredited energy management system vendor, like ENTOUCH. online today to find out more.