The Internet of Things (IoT) infuses a new life into the real estate industry. The technology space grows 20% annually in a market that builds or upgrades buildings with smart technology capabilities.
IoT represents a network of smartphones, tablets, computers, appliances, and utility equipment to interact with each other in real-time. Smart buildings reduce operational cost, are eco-friendlier, provide continuous data on the property’s day-to-day life, and attracts the digitally-oriented buyers or renters. Constructions wired to interact with smart devices enable property owners and building managers to control temperature, lighting, HVAC, building safety, outdoor cameras, sprinkler systems, and additional utility operations remotely.
Large office buildings gain insights from using the Wi-Fi footprint and users’ movement to understand foot-traffic around the property. Revenues stem from leveraging the commercial space to its maximum. By understand the usage of each square-foot, a building owner can better plan the space.
With IoT technologies, a tenant can expect to be recognized and possibly advised with data-driven suggestions to create an improved experience. For instance, Deloitte’s offices in Amsterdam experimented with smart lighting powered over the ethernet. Employees were able to adjust the brightness levels with their phones. The lights held air quality sensors that also tracked temperature and humidity. For commercial properties that offer activities during work breaks or after hours, smart connectivity brings real-time awareness of opportunities.
Smart buildings are disrupting the perception of a property’s commercial value. The adage that the top three factors to evaluating the worth of a building are location, location, and location faces a new contender: the building’s digital smartness. Digitally connected buildings bring lower operational costs and less expensive maintenance. Cost savings emerge from the use of motion sensing to turn on light and air-conditioning when a presence is detected and an automatic shutdown function when the facility is empty.
The largest expense reduction comes from IoT’s ability to monitor and collect real-time data continuously. The trail of information may reveal a slow degradation of a piece of equipment to anticipates a potential failure. Pre-emptive repair not only saves significant costs, but it also protects tenants from experiencing a problem. HydroPoint focuses on smart irrigation and water usage management that tracks water consumption. Artveoli senses air carbon dioxide levels and uses photosynthetic algae cells spread on large artistic canvases to remove carbon dioxide from the environment and generate oxygen. Blue Pillar uses IoT to educate businesses about their energy efficiency and help them weather power grid outages.
Asset digitization looks at a commercial building as a repository of current data from which new services can be visualized that may better serve a tenant. For instance, cameras may log the occupancy of the building’s parking lot and identify open spaces that a tenant may discover using an app offered for a fee.
Operations Technology, or OT, enters the new lexicon of trendy commercial properties. The property owners offer an advanced level of safety by detecting abnormal changes to the daily norm recorded by IoT, perhaps deviations that may indicate potential risks, such as a drop in the air quality or an elevation of room temperature. The building may offer cybersecurity protection for a fee. The building owner may equip the building with a portfolio of digital services accessible from the cloud through tenant subscriptions.
Internet of Things (IoT) sets the stage for the pay-as-you-go real estate service business. Digital services or physical amenities are delivered only if needed from a buffet of services that can be customized at the moment to respond to the demand.
The United Nations reported that carbon emission needs to be reduced by half by 2030 to protect the planet from further global warming threats. The hard push for a greener commercial way of life will utilize digital technology to know how much carbon dioxide a commercial space produces and to monitor continuous improvements to contain its carbon footprint.
The Global e-Sustainability Initiative and Accenture Strategy reported on their site SMARTer2030 that digital technologies may save in excess seven gigatons of carbon emission by 2030. In Montreal, Canada, The Kigali Cooling Efficiency Program tracks the energy efficiency of cooling systems and refrigerants across 197 countries to ward off the greenhouse effect caused by hydrofluorocarbons. Seattle built the first net-zero energy facility where sensors track energy usage inside the building through its IoT network. Overall, IoT can help preserve our planet in the long term.
With this increase in smart building constructions, the concept of “smart cities” is gradually becoming a reality. Singapore fights congestion with a large number of road sensors and traffic monitors to smooth peak traffic and reduce gas emission. In England, IoT helps car sharing with CityMapper to reduce traffic.
IoT services bring numerous but necessary changes to the real estate industry. It upgrades buildings into eco-friendly and responsive environments, reduces utility costs and energy consumption, and maintains accurate data records. With these enhancements, property owners are prepared for any hindrance, shortcoming, and setback that comes their way.