More corporate real estate service providers turn to smart building corporate real estate integration to drive profitability, marketability and better tenant experiences.
The world of corporate real estate (CRE) service providers is shifting, and the use of smart building solutions is becoming integral to successful CRE properties. According to Surabhi Kejriwal and Saurabh Mahajan of the Deloitte University Press, part of the reason behind this integration, creating smart building corporate real estate, derives from the ability to create value through differentiation. In other words, CRE companies are leveraging the power of smart building solutions to make their properties more attractive. However, smart building corporate real estate has additional benefits that increase integration rates as well.
Integrated Smart Building Solutions in Smart Building Corporate Real Estate Enhances the Tenant Experience
Creating a better tenant experience is key to increasing revenue through CRE properties. Implementing smart building solutions means tenants have a more personalized experience, and overhead operating expenses can be slashed to record-breaking levels. This also impacts average leasing costs in CRE. In other words, tenants can get the same space at a lower cost and without sacrificing the amenities found in most CRE properties. In fact, the use of smart building solutions may increase the level of amenities offered, which has major implications for improving tenants’ customers’ experiences.
Smart Building Corporate Real Estate Is Powered by Decreasing Smart Building Costs
The costs associated with implementing smart building solutions mirror the cost of sensors, powered by the Internet of Things (IoT), data analytics platforms and managed services. Over the past few years, the average cost of sensors and IoT-enabled devices has decreased dramatically, and the initial investment costs to develop smart building corporate real estate have dropped in tandem.
Smart Building Solutions in CRE Properties Increase Revenue Streams
Another factor in the growing integration between smart building solutions and CRE lies in the ability to leverage information across a CRE providers entire property landscape. In other words, small savings through preventative, predictive maintenance and greater occupancy rates, from better marketability, result in stronger revenue streams. Meanwhile, CRE providers that have not previously looked at energy-efficiency platforms as a source of revenue can begin leveraging the power of data to reinvest savings into their companies.
IoT-Enabled Devices Produce a “Deep Customer and Data Focus”
Positive tenant experiences are key to successful CRE service partnerships, and smart building corporate real estate produces a deep, data-based focus on customer service.
Are the tenants happy, are they receiving attention to their maintenance needs, and if so, what can the CRE managing provider do to make the experience even better?
These questions are almost impossible to answer without a means of tracking tenant complaints and feedback in real time and across multiple sites.
Smart Building Corporate Real Estate Limits Asset Risk
Risk management strategies benefit from smart building corporate real estate as well. Risk relates to the level of uncertainty within a given building, but smart building corporate real estate uses data to prove the level of uncertainty and counteract it among CRE properties. To stakeholders, this means lower risk for assets, which in turn, catalyzes additional investments from new stakeholders and insures the proliferation of profitability. Furthermore, smart building corporate real estate is scalable, allowing a servicing provider to increase or decrease its risk management strategy to coincide with changing assets.
Remote Centralized Control Reduces Costs Associated with CRE Facilities Management
Modern CRE service providers are also faced with the challenge of managing dozens, if not hundreds, of individual CRE properties. Since smart building corporate real estate uses the internet to manage facilities, labor costs associated with on-site facilities management are eliminated. In other words, a facility manager can oversee multiple sites from any location with an internet connection and the appropriate credentials to log in to the smart building system.
Integration Between Smart Building Solutions and CRE Service Providers Will Continue to Grow
Integrating smart building solutions within CRE properties is only going to grow as initial investment costs continue to decline and cost-savings soar. Moreover, tenants are willing to pay a premium for CRE properties with integrated smart building solutions. To help your organization succeed, you need to consider implementing smart building solutions in your CRE properties today.