Management consultancy CIL has predicted there will be a 10 percent increase in business activity for smart building technology suppliers over the next five years.
After interviewing 150 landlords, property managers, agents and suppliers across North America and Europe, CIL found over half (58 percent) of respondents see smart controls and sensors as important in building management, with the majority (92 percent) saying spending in this area is increasing. Â
CIL says there is increasing recognition of smart buildings’ ability to create efficiencies in commercial real estate, bringing costs down, increasing tenant satisfaction, improving space management and ensuring strong energy performance.
James de La Salle, director of CIL’s built-environment practice, says the strongest case for smart building development remains within prime real estate, due to the costs involved.
“Properties in larger cities with higher rents can justify refurbishments and upgrades, so it is these buildings which are seeing the early investment,” he says. “Older buildings and commercial real estate out of larger cities are likely to take longer to adopt this technology.”
“However, as property managers build a stronger economic case for smart technologies, we predict a sector of high growth and strong margins, with clear benefits for commercial real estate.”
CIL’s research has also confirmed energy-efficiency improvements have been a key driver of investment across commercial real estate to date, thanks to an increased focus on combating climate change, new regulation and the desire for cost-cutting.
Current industry focus is on LED lighting, which can substantially reduce the cost of building maintenance. This focus is broadening to include advanced heating, ventilation and air conditioning systems, with 84 percent of respondents predicting a rise in future spend in this area.
