Smart Building Trends

Software with machine learning and decision-making capabilities are required to create an action from the raw data shared from the building sensors. Schneider Electric and Seimens are some of the leading companies offering building management software.

A wireless connection is a defining part of any smart building. Without the network, your sophisticated sensors and software can’t speak to each other.

It should come as no surprise that internet connectivity is imperative in any commercial building. According to Wiredscore “Internet is among the top three most important factors for tenants who are searching for office space”. Wiredscore offers a certification allowing building owners to promote their buildings’ digital infrastructure. Today, large commercial real estate providers and investment firms including JP Morgan, Blackstone and Hines are certified.

Let’s have a look in a little more detail some of the solutions that smart buildings typically provide, and some of the trends to look out for.

Heating, ventilation and air conditioning systems can be optimised through smart building sensors. Occupancy monitoring and smart thermostats blended with learning algorithms can adjust and predict HVAC settings within the building, reducing overall energy consumption and providing a more comfortable environment for the building’s users.

Lighting can be automatically adjusted based on occupancy and the natural light levels in the room. A key theme once more is the increased efficiency this provides, and, with lighting being responsible for 19% of the world’s energy consumption, it’s no surprise that smart lighting is on the agenda. Phillips is a leading provider of smart lighting in both commercial and residential real estate. Phillip Hue, Phillips’ residential range, have created solutions that can be set up and used easily and instantly in homes with their convenient starter packs. Their commercial option offers data-driven insights and energy savings by up to 80%, whilst also offering improved workplace design and employee experience.

Building emissions from gas, electric, water, waste can all be tracked and reduced through smart building solutions. Bearing in mind that buildings account for 40% of all energy consumption and 70% of all electricity consumption, there’s a huge opportunity for not only significant cost-savings, but for the impact on the environment if adopted on a mass scale.

A smart building software solution called Measurabl has the technology to track all of these key components. Through the platform, you can measure sustainability and report findings for building portfolios. You can even set targets and track progress toward sustainability goals.

Although environmental sustainability in buildings is not new, it has most definitely become front and centre of mind. Last year was dubbed the year the world woke up to climate change – and it’s no surprise with the influx of natural disasters, storms, bush fires and record-breaking heat the world endured. Paired with the staggering statistics on increasing global emissions – of which the built environment is responsible for a huge chunk – it’s no surprise that trends in smart buildings are dominated by green initiatives.

There is a notable investment opportunity in green buildings. A report discussing M&G Real Estate showed that the company’s green assets achieved a higher rental income (+53bps), and although operational costs were higher due to the implementation of smart technology (+31bps), the overall distributable income to investors was 19bps higher, showing the financial benefit of owning certified green buildings compared to non-certified buildings.

The investment opportunity alongside the growing climate change concerns bears no surprise that the green building sector is set to double in 2020.

Wellbeing and community considerations continue to reign, so much so, we don’t consider this to be so much a trend any more but rather the new normal. Nonetheless, we felt we couldn’t go without mentioning this key component to smart buildings.

The rise in flexible workspace has grown significantly over the past few years, with the global market value of flexible workspace estimated at $26 billion. Now most companies are splitting their fixed lease liabilities into flexible arrangements to support their long term leases and to reflect the changing nature of business. It also means that tenants are increasing their standards. They can move offices easier than ever before if they are no longer content with the service they are receiving. Especially as new full service, community-focused campuses and office towers are being developed to match the modern workforce expectations. Older buildings need to be updated and new buildings are setting the standard of smart building tech combined with community and wellbeing.

WELL offers certification for buildings and communities that provide a premium in health and well-being. Today, wellbeing in buildings can be used as a marketable tool to attract new tenants/employees or other building users, and with commercial real estate now an on-demand service, providers will need to consider their wellbeing programmes to compete.

More and more buildings are becoming ‘smart’ via their own internal Internet of Things (IoT), collecting vast amounts of data. A huge opportunity lies here for buildings to share and compare data. This will be the next generation in what we understand smart buildings to be.

Through this collaborative use of data, buildings will be compared like-for-like with one another. Sub-par buildings can iterate processes by the adoption of standards from other high-performing buildings.

It’s no surprise that leading providers are now incorporating technology through the use of smart building software and tenant experience software to ensure they can offer a premium experience and utilise their building more efficiently.

Smart building trends will continue to see a rise in the use of technology balanced with a thoughtful offline experience. Smart buildings will become the new norm, much like smartphones and smart TVs already are today. As digital natives become an increasing percentage of the workforce, smartphone-enabled features and amenities will become an intrinsic part of smart building infrastructure.

Buildings will be intuitive, such as lifts predicting the floor it’s needed to be on based on past behaviours, and energy management that adapts to the occupancy of the building. In an article by Raconteur, WeWork’s Andy Heath discusses data optimised workplaces: “Offices will become far more customisable based on people’s data,” he says. “An office will track my location and adjust preferences to suit me. After lunch, the temperature where I am sat might drop by a degree and the blinds may go up slightly to wake me up, creating my optimum work environment.”