It’s estimated the North American smart building market will to grow to $121.6 billion by 2026. You deserve a chunk of that!
Smart buildings are a large part of creating a sustainable future, as about 28 per cent of global energy-related CO2 emissions are directly correlated to the operations of buildings.
As we continue to move forward toward a highly sustainable future, you as a commercial real estate 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, while reaping the financial rewards of investing early in the market.
Between work and home, North Americans spend about 75 per cent of their time indoors, so comfort is extremely important.
Smart buildings can include hospitals, data centres and offices, so the possibilities for investing in these infrastructures are endless.
Defining “smart buildings”
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, such buildings are connected to wireless sensors 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 also be embedded into older buildings so most properties have the potential to become smart buildings.
You will get back your return on investment much faster than anticipated, because the market has accelerated in the past decade. Instead of a 10-year long-term plan, you can expect to make your money back in less than five years if you invest in the right smart building.
A huge potential market
Smart buildings are popping up around the world!
About 58 per cent of commercial buildings have the existing infrastructure to support a building automation system. That means over half of all buildings have the potential of becoming smart buildings, so the odds are certainly in your favour to make a large profit on your investment.
We can’t deny that smart buildings are at the forefront of commercial real estate innovations. Progressive property owners understand they will need a foolproof strategy that can keep them playing in the CRE sector long-term.
CRE investors need to understand their positions in the smart building strategy if they want even the slightest chance of dominating the market. With most of the workforce returning to the office full-time, smart building properties are what will give you an edge in enhancing your portfolio.
A fast-paced workspace is not only the way of the future, it’s our current situation.
Smart technology propels growth across all sectors
The continued awareness for energy-efficient systems and the increase in government initiatives will drive demand in the market and help us meet 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 more energy-efficiency resources has become a priority.
As governments around the world continue to set ambitious energy conservation goals to reduce their carbon footprints, smart building technologies promise to play a central role.
North America is estimated to hold the highest market share of the smart building market over the next five years. Get your foot in the door now and don’t miss out on the opportunity.
Generally, commercial buildings waste the most energy through the use of unnecessary HVAC and leaving numerous lights on when no one is occupying space. Using IoT data in a real-time feedback loop, there can be an on-demand equipment control that takes into account occupants’ traffic patterns and where spaces require less electricity.
If you’ve been on the fence about investing in smart buildings, there is no better time than the present.
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 (for more on this, click the attached video).
The magic of smart buildings is that they can be implemented in all commercial buildings to reduce a company’s carbon footprint – 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.