According to a report released in the first quarter of 2018 by the National Association of Realtors, the national average for office vacancy rates increased 1.7% in the fourth quarter of 2017 due to supply outpacing absorption.
This trend poses a threat to net operating income (NOI) and the expected return of ownership for commercial office real estate. Real estate companies would be wise to recognize that operating expenses are not as fixed as often assumed.Read More
Those in charge of commercial real estate are now aware of how much value equipment-level fault detection technology can provide in terms of lower operating expenses and improved tenant comfort. In today's video, Felix Lipov explains the criteria that should be used when evaluating fault detection technology to get the best system for your portfolio.Watch Video
There are potentially billions of dollars at stake and nearly limitless new technologies to evaluate. Given this, it’s not hard to see why many companies are finding it challenging to implement technologies at scale.
How can those in charge of technology adoption in commercial real estate cope with such a rapid influx of emerging technologies, and what strategies are the leading companies using?Read More
Simply making something available does not necessarily mean that it will be applied correctly, or even used in the first place. As the pace of technology deployment in commercial real estate quickens, the likelihood that tools adopted in the boardroom are not being used in the mechanical room is increasing in kind.
Technology deployments can become more effective by avoiding the pitfalls that lead to poor internal adoption.Read More
There are a lot of savvy folks at the intersection of real estate and technology working to figure out how the Internet of Things (IoT) can improve asset performance and lower costs. In today's video, Derek Cedarbaum shows how different IoT solutions can best be utilized depending on the situation.Watch Video
To compete effectively in today’s real estate market, companies not only need to adopt technology, they need to adopt the right technology.
We’ve explored this topic from several dimensions, but before those details can be addressed, there is a more fundamental question that must be answered: whether a given technology is horizontally or vertically aligned.Read More
Many real estate firms tend to wait for a well-proven ROI before making tech investments. Even those that recognize the economic value of the IoT may forego investments because they are unable or unwilling to bear the upfront costs.
Recognizing this, government entities and non-profit organizations have created a web of incentives for landlords to implement IoT and other “Smart Building” technologies.Read More
This case study explores how Enertiv's system identified an error in the transcription of manual meter reading that resulted in a nearly $16,000 discrepancy for a tenant.Download
A great irony persists when calculating the return on investment for Internet of Things (IoT) technologies in commercial real estate: The value of the IoT lies in the data it generates, but to calculate this value exactly, data is required.
For once, it is not enough to simply say that the real estate industry is slow to adopt new technology. There are inherent aspects of the business that make exact calculations difficult.Read More
In a previous article, we explained what to look for in a tenant submetering service to avoid being locked in to poor service, billing discrepancies, and lack of flexibility – the Death Trap.
But to the surprise of many owners and operators, an older submetering infrastructure does not necessarily mean that there are no options for changing service providers. The next question is inevitably “how?”Read More
According to a recent US Department of Energy report, the number of LED installations has quadrupled from 215 million units in 2014 to 874 million units in 2016. Despite this staggering growth in the adaptation of LED lighting, LED market penetration is still at only 12.6%.Read More
The term “smart” is used to describe a wide variety of technologies—cars, watches and even light bulbs.
But it’s not always easy to know how exactly this revolution will impact you as a maintenance professional. How can you use sensors and software to take the term “smart maintenance” from buzzword to practical facility improvements?Read More
Real estate companies are beginning to realize a hard truth: It is no longer a question of whether they need an Internet of Things (IoT) strategy, it’s a question of how and when.
With that in mind, nearly every department is scrambling to make sense of the dizzying number of options, and to create a coherent strategy.
Tenant amenities have progressed, but how properties are actually operated remains tragically stuck in the past; it’s clear that technological progress has not been even.
Building operations are like the engine that makes your car go. It doesn’t matter how nice that new paint job, if it doesn’t get from point A to B, the passengers will get frustrated.
It is a natural tendency for large organizations to create silos for different departments. Silos provide the structure that promotes specific expertise and a linear flow of information. But silos also cause problems, namely a restriction on the information, collaboration, and focus outside the department.
In building operations, most real estate companies have created distinct silos for maintenance and energy management. On the surface, this makes perfect sense.
Few real estate companies can honestly state that there is a culture of continuous improvement. Even portfolios that are operated exceptionally well rarely can point to cultural reasons for the success. More likely, there are a few highly experienced building operators who know how to fix the myriad of problems that arise in buildings on a regular basis.
What are landlords and property managers supposed to do when the current crop of highly skilled individuals are no longer around?
Many properties utilize meters for individual tenant spaces to collect data around electricity and water use, and bill each tenant for their share of total building consumption. Often, a third party reads the meters and sends the invoices on behalf of the owner or property management company.
In recent years, meters capable of real-time collection have enabled owners and property managers to digitize and automate their tenant submetering process.
With the growing excitement around the possibilities of tomorrow’s buildings, there is faith that “building management systems are the backbone of smart buildings.” Owners and operators are envisioning ways in which the traditional BMS can be expanded to become the source of data for how a portfolio of buildings is performing. Even for properties that have not installed a BMS, there is faith that advancements in sensor technology will make investment in a BMS more cost effective.Read More
“For a lot of facilities managers, if you asked them, ‘How does your HVAC equipment – your chiller or boiler plant, as examples – behave on a 60-degree day without humidity?’ or ‘How do they behave on an 80-degree day with high humidity?’ I think a lot of the time the answer is that the data isn’t really available,” says Mark Pando, Energy Project Engineer at EnertivRead More
The best operated portfolios don’t necessarily do more of any one thing. Instead, driven by a deep understanding of what is important, these industry leaders apply technologies, invest in equipment, and update operational strategies intelligently. Over time, doing all the small things correctly unlocks asset value that would otherwise have been lost to wasted operating expenses.Read More
The commercial real estate (CRE) industry is busy adopting technology to streamline services, meet rising tenant expectations, and maintain profitability in an increasingly competitive marketplace. As a result, the departments involved with building operations are evaluating technologies that analyze building system data to reduce operating expenses and facilitate a better tenant experience.Download
In the early days, determining the effectiveness of a retrofit – measurement & verification (M&V) – commonly consisted of comparing baseline and post-installation expenses for the entire building. While methods have developed over time to focus more closely on the equipment that was replaced or upgraded, it is still largely a retroactive strategy.
But what if this process could be performed before the installation?
Due to the complexity of energy pricing, two identical buildings can consume the same amount of energy and have profoundly different utility bills. Demand charges are a reality for every building but with the right data it is possible to identify and solve the issues that cause high peak demand and expensive utility bills.Read More
Building operations and sustainability departments are under increasing pressure to contribute to the bottom line through cost savings. As real estate companies continue to trim their budgets, so continues scrutiny of building operations dollars.
And yet, there persists an assumption that automation through a Building Management System (BMS) will lead to “smart” buildings and improved performance.
Perhaps more than any other function, building operations in commercial real estate (CRE) is primed to reap the benefits of advances in Big Data and Internet of Things (IoT) technology.
However, to date, systems have been deployed piecemeal to address specific problems. Solutions have typically been implemented as siloed, expert-oriented tools lacking the ability to communicate or share data with other integral systems.
In office and apartment buildings across the country, operators are adjusting equipment systems and responding to issues so the rest of us remain comfortable.
But building operators are lacking the tools they truly need to excel at their jobs. That’s exactly where machine learning comes in.