Smart Buildings and IoT: Adding Value to Commercial Properties
The real estate commercial space is seeing a groundswell of transformation driven by technological progress and a demand for smarter, greener properties. The creation of Internet-of-Things-enabled smart buildings ranks among the strongest trends transforming the industry. By integrating networked devices, sensors, and smart systems, smart buildings bring with them added functionality, energy savings, and tenant satisfaction. Dov Hertz, a well-known real estate developer, describes how IoT technology is value-enhancing commercial properties and transforming the future of the built environment.
The Emergence of Smart Buildings
Smart buildings are constructed to maximize operating effectiveness, lower energy use, and deliver an enhanced overall experience for users. They are built on IoT technology—interconnected devices that speak to each other and exchange data to automate and simplify building functions. These technologies range from smart lighting and heating, ventilation, and air conditioning to sophisticated security systems and real-time occupancy monitoring.
“Smart buildings are no longer on the horizon; they’re becoming the new norm in commercial real estate,” says Dov Hertz. “With evolving tenant expectations, there is increasingly a need for buildings that offer convenience, sustainability, and security. IoT technology enables us to satisfy all of these needs.”
The application of IoT technology in office buildings gives the owners and facilities managers real-time remote monitoring and control of the building systems. This leads to energy efficiency, lower costs, and efficient deployment of resources which make smart buildings appealing to investors and tenants.
Improving Energy Efficiency
One of the strongest benefits of smart buildings is that they can make buildings more energy efficient. IoT sensors offer real-time monitoring of energy usage, allowing property managers to identify inefficiencies and optimize systems like lighting, heating, ventilation, and air conditioning (HVAC). Occupancy sensors, for example, can automatically adjust lighting and HVAC levels up or down based on the number of occupants in a room to prevent wastage of energy.
“Energy efficiency is a big selling point for commercial real estate these days,” Hertz explains. “With IoT, we can significantly reduce the carbon footprint of a building, reduce utilities, and provide tenants with an environment that enables them to achieve their own sustainability goals. That’s a huge competitive advantage in the market today.”
Smart buildings can also incorporate renewable energy sources, such as solar panels, and leverage IoT to monitor the same and make adjustments in energy usage accordingly. The integration of renewable energy makes it more sustainable and less dependent on traditional power grids, which helps provide cost advantages in addition to environmental benefits.
Enhancing Tenant Experience
In addition to energy efficiency, smart buildings also offer different advantages to tenants including comfort, convenience, and security. For example, IoT-based lighting systems allow tenants to adjust the light level of their working space through their mobile phones, while controlled HVAC systems ensure maximum temperatures are achieved within the building. Smart building technology is also integrated into security mechanisms like facial recognition or biometric entry access and remote monitoring of CCTV cameras.
“Tenant satisfaction is the secret to any successful commercial property,” Hertz notes. “Smart buildings are not just more comfortable and efficient to inhabit but also offer a hassle-free experience that tenants expect these days. From auto climate control to enhanced security, smart buildings offer the convenience and sense of security today’s tenants demand.”
Additionally, IoT technology permits greater personalization of the tenants. Real-time feedback makes it possible for the building managers to adjust conditions as per individual tenant requests, thus allowing each tenant to feel they enjoy a bespoke and customized experience. This customization creates greater retention among tenants and also generates long-term value for owners of the buildings.
Adding Long-Term Value to Commercial Properties
The integration of smart building technology significantly contributes to the long-term worth of commercial property. Smart buildings, through energy efficiency, green building, and enhanced tenant experience, attract higher-quality tenants, reduce operating costs, and increase overall property value. As demand for sustainable, high-tech space continues, these buildings will remain in high demand on the market.
“Smart buildings are an investment in the future,” Hertz says. “They create long-term value in the form of lower operating costs, improved tenant satisfaction, and property value appreciation. For developers and investors, embracing IoT technology is no longer an option—it’s necessary to stay competitive in the marketplace.”
Moreover, smart buildings will also appreciate in value since there is more emphasis on sustainability, energy efficiency, and technology. As green building certifications become more prevalent and tenant requirements for intelligent buildings grow, developers who integrate IoT into their buildings position themselves for greater returns on investment and profitability in the future.
The Future of Smart Buildings
As technology continues to develop, smart buildings will only get smarter, with more and more new ways to streamline building operations and tenant experience. The future of smart buildings will probably include even more use of AI, machine learning, and predictive analytics, enabling even more advanced systems that can anticipate needs and optimize performance in real time.
“The future of intelligent buildings is really exciting,” Dov Hertz says. “We are only just starting to scratch the surface of the potential that IoT and other new technologies can drive for commercial buildings. The more these technologies develop, the more unlimited are the opportunities for producing more sustainable, efficient, and tenant-centric space.”
IoT-connected smart buildings are revolutionizing the commercial real estate market, providing enhanced energy efficiency, enhanced tenant experience, and long-term value. Through the integration of connected systems into their properties, developers can create buildings that cater to the requirements of today’s tenants and promote sustainability programs. With the commercial real estate market continuing to advance through the addition of technology, smart buildings will become a larger and larger aspect of the industry’s future.
Dov Hertz recently appeared on a podcast: