Smart-building technology — hardware or software deployed in a building to improve tenant experience or operations management — is poised to transform the commercial real estate industry. That is the thesis of a recent white paper from Navitas, which looked at the state of the smart-building subcategory of the proptech market; it found “the application of technology and process innovations has been embraced by the early adopters and market leaders, has been de-risked in many cases from a technology perspective, and has become increasingly more attractive from a price-to-value standpoint.”

Smart-building technology is currently evolving from first-generation solutions — generally building-level sensors targeting core functions, such as HVAC, lighting, energy, etc., that were monitored by a facilities manager or asset manager — to solutions that now focus on machine learning/artificial intelligence and rolling out programs across an entire portfolio.

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