It’s estimated that the North American smart building market is projected to grow to 121.6 billion by 2026!
Smart buildings are a large part of creating a sustainable future, as about 28% of global energy-related CO2 emissions are directly correlated to the operation of buildings. As we continue to move forward towards a highly sustainable future, you as a CRE investor can greatly benefit from smart buildings. Think of investing in smart buildings as financing the next frontier of making people’s lives more efficient and sustainable, creating a less polluted planet in the process.
Between work and home, North Americans spend about 75% of their time indoors, so comfort is extremely important. Smart buildings can include hospitals, data centers, and offices so the possibilities for investing in these infrastructures are endless. The term ‘smart buildings’ refers to the protocol that enables properties with lower power but longer-range connectivity. A smart building is based on the structure of IoT (Internet of Things) that uses hardware, software, and connectivity to manage security, HVAC, and lighting to reduce a company’s carbon footprint.
In simple terminology, smart buildings are connected to wireless sensors to be deployed throughout a building to reduce electricity in areas that are not occupied. Utilizing the automated control of a building’s electrical systems, a comfortable environment can be created for all occupants while consistently lowering their environmental impact. The best part? Modern smart solutions can be embedded into older buildings so most properties have the potential to become ‘smart buildings’.
Smart buildings are popping up around the world!
About 58% of commercial buildings have the existing infrastructure to support a building automation system, so we can’t deny that smart buildings are at the forefront of commercial real estate innovations. Progressive property owners understand that they will need a foolproof strategy that can keep them playing in the CRE long-term.
Smart technology propelling growth across all real estate sectors
The continued awareness for energy-efficient systems and the increase in government initiatives will drive demand in the market and help address global sustainability standards. CRE developers and investors who see the trend are already being a part of the change and building the future. As businesses are starting to embrace the office workspace once again, the quest for higher energy-efficiency resources has become a priority. As governments around the world continue to set ambitious energy conservation goals to reduce their carbon footprint, smart building technologies promise to play a central role.
Green buildings are, and continue to be, at the forefront of a large CRE revolution. As the demand for sustainability is getting more urgent, the people and the planet can greatly benefit long-term!
Generally, commercial buildings waste the most energy through the use of unnecessary HVAC and leaving numerous lights on even when no one is occupying space. Using IoT data as a real-time data feedback loop, there can be an on-demand equipment control that takes into account occupants’ traffic patterns and where there are more desolated spaces that require less electricity.
You can’t stay stagnant in an ever-changing market like this one; as I say, “Change or die”. Sorry to be so morbid but that’s the actual fact – if you’re in real estate, that’s just how the game works. Watch my video below for more insight.
The magic of smart buildings is that they can reduce a company’s carbon footprint while being able to be implemented in all commercial buildings – from retail to residential to offices to campus buildings. It is extremely worthwhile to start riding the hypothetical wave to maximize your ROI and stay on top of market trends that are embracing the eco-friendly persona.