The Internet of Things Is Revolutionizing Commercial Real Estate
The commercial real estate (CRE) industry is about to undergo major disruption thanks to the Internet of Things (IoT). Technology is beginning to encroach upon an industry that has traditionally lacked innovative spirit. This technology is expected to change the very definition of what it means to be a real estate broker. As client needs evolve, brokers must learn new skills in order to keep up with the changing technology landscape and to remain competitive.
Today, many offices and industrial properties in the United States are old and outdated. They are increasingly hindering business growth for tenants and owners while costing them huge sums of money.
In the technological age, buildings must work in tandem with business objectives, helping companies achieve their goals and improve operational efficiency. What if your workplace had the ability to work with you and your employees to understand trends, optimize work environments, and increase revenue?
The IoT is changing companies by allowing organizations to bring both office and industrial buildings to life. Buildings generate data every second of every day and it is up to the modern real estate broker to help clients capture and understand that data. Whether it is the HVAC system that adjusts the temperature throughout the day, manufacturing equipment that runs and shuts off as needed, or a security system that logs when an employee enters or leaves the premises, buildings can now provide value-added insights that can help management to make more informed business decisions.
“From an office perspective, smart building technology creates a more collaborative work space for employees, and increases productivity and performance.” says Kevin G. Joseph, cybersecurity strategist at IBM. “Imagine if you pulled into your assigned parking space and the building knew you were there. Your office computer and lights turn on, climate control is set to the way you like it, and your coffeemaker brews you a cup of coffee. These things are all possible with connected devices.”
Currently, the CRE industry is very transaction-focused. Brokers represent clients, find what their clients need and collect paychecks. However, this era of transactional real estate is expected to soon come to an end and IoT is a major reason why.
The IoT is forcing commercial real estate brokers to acquire skills that are based in technology, cybersecurity and innovation. Nowadays, clients need brokers who are more than just real estate experts — they must also become technology strategists who help clients acquire buildings that support their corporate technology goals. Companies can gain a competitive edge by using a real estate broker who understands the market and who can work with them to design a building automation strategy that supports the goals of the business.
According to a white paper from technology companies IDC and SAP, 60 percent of global manufacturers will use data collected from IoT devices to optimize their processes this year. The report also predicts a 15 percent increase in supply chain productivity by the year 2018 thanks to the IoT. Another IDC report estimated that global IoT spending will reach $1.29 trillion by 2020, with an annual growth rate of 15.6 percent.
Brokers who wish to remain competitive in the commercial real estate industry can only stay ahead of the competition by understanding the technological needs of clients.
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In this issue:
The 10 Fastest Growing Cities in the U.S.
Automation Could Eliminate Real Estate Appraisal Jobs
Life Is Great for U.S. Homesellers
Los Angeles Ranks First as Best City for Global Real Estate Investors
Millennial Homebuyers Are Struggling
Millennials More Likely to Regret Real Estate Choices
Real Estate Startup Redfin Gears Up for IPO
Zillow’s Instant Offers Program Draws Ire From Real Estate Agents
Second Homes Sales Decline as Investment Sales Increase
Nine Highly Salable Factors of Real Estate Property