Did you know that IoT (Internet of Things) SIMs can be used to power smart real estate use cases? Leading to lower maintenance costs and improved building efficiencies? This is backed by a Gartner report, adoption of IoT can bring down the overall costs of building management by up to 30 percent.

When it comes to commercial real estate (CRE) – properties for business-related purposes or to provide workspace – the past few years of global volatility have proved challenging.

High costs of capital, banking turmoil and broader macroeconomic headwinds continue to hamper CRE investment activity. Marking one of the most prominent commercial real estate trends.

To outperform the competition and make sounder investment decisions, this is where IoT SIMs and cellular connectivity, can make a significant difference.

Real estate firms equipped with data-driven insights are positioned to differentiate themselves from competitors. This creates more efficient building operations, enhance tenant relationships, and new revenue opportunities.

Additionally, ESG – environmental, social and governance – considerations, have come to the forefront. With more investment managers, buyers and tenants adopting ESG standards in their investment criteria.

Here’s an overview of the most used IoT applications in commercial real estate today.

Building management systems

IoT-enabled building management systems can be used to reduce energy use, repair and maintenance, and administrative costs.

For example, data from motion sensors in an office building can help to regulate air-conditioning and lighting in real time. This reduces energy costs and optimizes the internal environment, while lowering energy bills for tenants.

The continuous monitoring capability can also extend to building repair and maintenance. Data and insights can prevent complete maintenance failure by enabling corrective action before a serious issue arises.

It can even alleviate security concerns for both owners and tenants as real-time monitoring bolsters internal security.

Portfolio analytics

For CRE owners, investors and portfolio managers, enriched insights from devices with SIMs can result in enhanced risk management, better portfolio management capabilities, and improvements to ensure satisfied tenants.

For example, analyzing occupant behavior, moving trends, demographics and space usage patterns can help identify capacity and develop future action plans and business models.

These patterns can be discerned via granular data from smart devices. This extends to water meters, HVAC systems, and movement in common areas such as elevators.

Leasing processes

On the flip side, the same SIM and smart sensor technology and data can also boost customers’ ability to choose CRE properties.

From student housing to retail stores, automated brokerages and leasing activities are becoming more common. With detailed insights, new entrants to the CRE landscape are increasing transparency between potential tenants and CRE owners.

This will reduce friction in the CRE leasing and buying processes as potential tenants can see both static data (e.g. price). Additionally, real-time area data about traffic, footfall and even customer purchasing behavior that can significantly impact property values.

ESG goals

IoT’s interconnected nature means that the value data can be used for good in the broader ecosystem.

In this case, connected buildings can drive sustainability initiatives related to energy, water, and waste management.

For instance, data from smart HVAC systems and energy monitoring devices would allow power utilities to enhance the efficiency of energy distribution and conservation. Likewise, in the case of water, different datasets can help buildings identify possible leakages and better plan water conservation.

This even extends to waste management. For example, sensors in smart trash bins can communicate volumes to help collectors optimize pick-up timings and appropriately plan disposal of different forms of waste.

These analytics motivate CRE owners to improve their sustainability processes across their properties. As tenants become increasingly aware of ESG initiatives, managing sustainable properties is also a market differentiator over competitors.

In sum

IoT is revolutionizing real estate by enabling real-time monitoring and data-driven insights.

As the industry continues to evolve, IoT solutions will play a critical role in improving operational efficiency, reducing costs, and enhancing the lives of all residents.

For a free consultation on how to best utilize our innovative connectivity solutions, book a meeting with our industry experts today. Or better yet, try our award-winning, secure SIMs here.