We’re at an inflection moment where commercial buildings are expected to run sustainably, hybrid work practices influence space use and use cases for building technology are now obvious. Modern buildings Overlays New Braunfels erected after 2015 are commanding 61% greater rent premiums and lower vacancy rates than their peers. So where does this leave the older building stock? What are the other 87% of buildings missing out on because just 13% of older buildings are employing smart controls to keep current? Here are five reasons why the “status quo” is not good enough anymore.
A poor tenant experience The war for talent is heating up and optimising the tenant experience will be vital for real estate managers to retain strong renewal rates. How can older, smaller structures keep up with the skyscrapers that are ahead of the curve? There is a high volume of hot/cold complaints since these buildings lack automation and intelligence. It's also tough to get tenant input on whether the place is comfortable. The use of old, outmoded thermostats makes it impossible to detect air quality and prioritise cleaner air for occupant well-being. But overcoming this doesn’t have to be terribly complex. Small, inexpensive sensors that provide data into an automated dashboard can collect inputs from renters, temperature, occupancy and weather to improve comfort, and the tenant experience.
The risk of unexpected failures A reactive mentality towards unforeseen downtime can impair the tenant experience and impede real estate managers from keeping on budget. Equipment breakdowns and accidents, such as water leaks, often develop gradually over time, unseen by the naked eye, until it is either too late to do anything about them or they would cost too much to fix. Real estate management teams are at a significant disadvantage when vital information about the root cause of breakdowns is lacking, as this increases the cost of repairs and strains budgets. It's been proved by the US Department of Energy that condition based maintenance (a sort of predictive maintenance) employing smart building controls can save 8%-10% more than preventive maintenance, with overall savings up to 40% more than reactive fixes.
Energy policies that miss the mark Cities and states are stepping up their efforts to achieve net zero by 2030, and commercial buildings are being expected to do more than ever to become more energy efficient in order to satisfy carbon reduction goals. With commercial buildings wasting an average of 30% of their energy, how can smaller, older buildings cut their power bills and move toward sustainability? The “status quo” might entail permanently set thermostats that maintain the same room temperature 24/7, regardless of occupancy. AC on full blast with windows open is another energy waster. This highlights the importance of intelligent building controls, which remove the element of guesswork from maximising energy efficiency and ensuring the comfort of occupants.
When there is a deficiency in quality information, decision-making is delayed Like any other job, managing real estate requires reporting to higher-ups. They must prove to the tenant or the building owner that they have increased NOI and tenant satisfaction. Under the current system, property managers can only rely on subjective accounts from tenants. They don't have the data to track how well they use space, how long they use equipment, or how much carbon dioxide they save. When property managers have access to accurate information, they can begin to identify patterns that will guide them toward their objectives.
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