It is estimated that the North American smart building market will grow to $121.6 billion by 2026. You deserve a part of it!
Smart buildings make a major contribution to creating a sustainable future, as approximately 28 percent of the world’s energy-related CO2 emissions are directly related to the operation of buildings.
As we continue to move 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 to make people’s lives more efficient and sustainable, while reaping the financial benefits of investing early in the market.
Between work and home, North Americans spend about 75 percent of their time indoors, so comfort is extremely important.
Smart buildings can include hospitals, data centers and offices, so the opportunities for investing in these infrastructures are endless.
Definition of “smart buildings”
The term “smart buildings” refers to the protocol that enables buildings with lower power consumption but longer-range connectivity. A smart building is built on the fabric of the Internet of Things (IoT), which uses hardware, software, and connectivity to manage security, HVAC, and lighting, thereby reducing a company’s carbon footprint.
In simple terminology, such buildings are connected to wireless sensors distributed throughout the building to reduce power consumption in unoccupied areas. Leveraging automated control of a building’s electrical systems, a comfortable environment can be created for all occupants, while at the same time sustainably reducing environmental impact.
The best part? Modern smart solutions can also be integrated into older buildings, so most properties have the potential to become smart buildings.
You will get your return on investment much quicker than expected as the market has accelerated over the past decade. Instead of a long-term 10-year plan, you can expect to get your money back in less than five years if you invest in the right smart building.
A huge potential market
Intelligent buildings are emerging all over the world!
About 58 percent of commercial buildings have the existing infrastructure to support a building automation system. This means that more than half of all buildings have the potential to become smart buildings, so the odds of getting a big return on your investment are certainly in your favour.
We cannot deny that smart buildings are at the forefront of commercial real estate innovation. Progressive real estate owners know they need a foolproof strategy that can keep them in the CRE sector for the long term.
CRE investors need to understand their positions in the smart building strategy if they want any chance of dominating the market. With most employees returning to the office full-time, smart building real estate gives you an edge in improving your portfolio.
A fast-moving workplace is not only the future, but also our current situation.
Smart technology is driving growth across all industries
Continued awareness of energy efficient systems and increase in government initiatives will drive market demand and help us meet global sustainability standards.
CRE developers and investors who recognize the trend are already part of the change and are shaping the future. As businesses begin to reuse office workspace, finding resources to become more energy efficient has become a priority.
As governments around the world continue to set ambitious energy-saving targets to reduce their carbon footprint, smart building technologies promise to play a key role.
It is estimated that North America will hold the highest market share in the smart building market in the next five years. Get your foot in the door now and don’t let the opportunity pass you by.
In general, commercial buildings waste the most energy by using unnecessary HVAC equipment and leaving lots of lights on when no one is occupying the space. By using IoT data in a real-time feedback loop, there can be on-demand device control that accounts for occupant traffic patterns and where spaces require less power.
If you’ve been thinking about investing in smart buildings for a long time, there’s no better time than now.
You cannot remain stagnant in an ever-changing market like this; as I say “change or die”. Sorry to be so morbid, but that’s the fact – if you’re in real estate, that’s exactly how the game works (click on the attached video to learn more about it).
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 and office to campus buildings.
It’s extremely rewarding to ride the hypothetical wave to maximize your ROI and stay abreast of market trends that embrace the eco-friendly personality.